We implement a three-step procedure to assess the extent of exposure to real estate in commercial banks. First, we demonstrate interest rates and income to be the major determinants of delinquency. ...Then, we adopt a stress testing approach to calculate the impact of any adverse changes in these determinants. This suggests that a 1.3 percentage point increase in mortgage interest rate leads to a 20 percent decrease in a typical bank's distance to default. Finally, we look at the cross-sectional differences and indentify the banks with rapid loan growth along with high cost-income ratio as the most vulnerable.
The dynamics of house prices, sales, construction, and population growth in response to city-specific income shocks are characterized for 106 US cities. A dynamic model of search in the housing ...market in which construction, the entry of buyers, house prices, and sales are determined in equilibrium is then developed. The theory generates dynamics qualitatively consistent with the observations and a version calibrated to match key features of the US housing market offers a substantial quantitative improvement over models without search. In particular, variation in the time it takes to sell induces transaction prices to exhibit serially correlated growth.
This paper aims to explore the impact of the COVID-19 pandemic on retail real estate and high street landscape through acceleration of e-commerce and digitalization. The retail business have been ...evolving over the past several decades, accentuated by the evolution and development of digital technologies. Almost all parts of the world have witnessed the changes in consumer behavior, the nature of retail, and reshaping of the high street landscape due to the e-commerce revolution and continued expansion. Especially due to the COVID-19 pandemic, the retail platforms powered by digital technology had to be adapted quickly, and it is expected to continue to support this change as consumers and retailers adjust to new normalities. Moreover, retail real estate is intricately linked with the retail sector dynamics. While lockdown and social distance rules have devastating impacts on "traditional" retail property sector, it may accelerate the evolution process of multi-channel retail and the channel integration role of physical stores and thus, bring in transformations in urban-retail landscape. It is not necessarily leading to an end of high street stores, but it may have a significant impact on retail real estate business. There remains a lack of understanding of how these changes may pan out with a rigorous academic investigation. To close this knowledge gap, we analyze both the strategy event data of a range of UK retailers as well as the insights from interviews with retail asset manager and landlords using a mixed-method approach. The findings indicate an urgent need for physical shops to reposition the functions of their multi-channel business. Our analysis provide significant insights and highlight several implications for retailers, landlords and, also policy-making units dealing with urban regeneration and local economic development in the post-COVID-19 world.
We examine the determinants of international commercial real estate investment using a unique set of panel data series for 47 countries worldwide, covering the period from 2000 to 2009. We explore ...how different socio-economic, demographic and institutional characteristics affect commercial real estate investment activity by determining both cross-sectional and time-series estimators, running augmented random effect panel regressions. We provide evidence that economic growth, rapid urbanization and compelling demographics attract real estate investment, and also demonstrate that a lack of transparency in the legal framework, administrative burdens of doing real estate business, socio-cultural challenges and political instabilities reduce international real estate allocations.
Working from home and corporate real estate Bergeaud, Antonin; Eyméoud, Jean-Benoît; Garcia, Thomas ...
Regional science and urban economics,
March 2023, 2023-03-00, Letnik:
99
Journal Article
Recenzirano
Odprti dostop
We examine how corporate real estate market participants adjust to the take-off of teleworking. We develop an index for the exposure of counties to teleworking in France by combining teleworking ...capacity with incentives and frictions to its deployment. We find that the valuation of offices declined more in areas more exposed to telecommuting, a pattern that we do not observe for retail assets. In addition, we show that telecommuting increases vacancy, decreases construction, while transaction volumes are not affected. It implies that the drop in price is due to a shift in demand for space. In addition, our result suggests that market participants are expecting the shift to teleworking to durably affect the demand for office space.
•We assess how the corporate real estate market adjusts to the take-off of teleworking.•We find that teleworking lead to a decline in office valuation.•In addition, teleworking increases vacancy and decreases construction of offices.•The observed price drop suggests an anticipated structural shock of the Covid-19 pandemic.
Geographers have started studying residential (housing) and commercial real estate (offices, retail, leisure) at the intersection of financial and urban geographies to understand how the built ...environment – chunky and spatially fixed – has been turned into a (quasi-)financial asset – ‘unitized’ and liquid – through a range of regulatory and socio-technical changes and constructions. The financialization of real estate is not limited to the rise in household debt, mortgage securitization and international investment in office markets, but increasingly also affects rental housing: private equity, hedge funds and REITs buy up large portfolios of social and private rented housing, while housing associations use derivatives and other financial instruments. This report surveys the most recent research on finance, real estate and housing.
This article documents the complex course of commercial upgrading in four neighbourhoods of central Paris, a slow process in which transnational flows and state intervention play an outsized role. ...The data was collected at 20 independent coffee shops located in theWest 11th district and supplemented by long-term observation of the business mix evolution. The article focuses on the impact of geographic mobility – including migration and residential tourism – in the rapid development of upmarket alternatives to French cafes and bistros. It goes on to explain how political intervention/deregulation facilitated capital investment in commercial real estate. It then discusses the culturally informed perceptions that helped define desirable forms of consumption for France. The article demonstrates the extent to which cross-border flows influenced commercial gentrification, and calls for further research into the complex interplay of local, transnational, private and public forces driving urban change.
本文记录了巴黎市中心四个街区复杂的商业升级过程，这是一个跨国流动和国家干预发挥巨大作用的缓慢过程。数据是在位于西11区的20家独立咖啡店收集的，并辅以对业务组合演变的长期观察。本文聚焦于地理流动性（包括移民和居住旅游）对法国咖啡馆和小酒馆的高端替代品快速发展的影响。接着，本文解释了政治干预/放松管制如何促进对商业房地产的资本投资。然后，本文讨论了有助于确定法国理想消费形式的文化认知。本文展示了跨境流动对商业绅士化的影响程度，并呼吁进一步研究推动城市变革的当地、跨国、私人和公共力量之间的复杂相互作用。
Skupaj z Matično sekcijo geodetov pri Inženirski zbornici Slovenije (IZS MS-Geo) in Gospodarskim interesnim združenjem geodetskih izvajalcev (GIZ-GI) smo korektno sodelovali v strokovni skupini, ki ...je pripravljala vsebinske podlage novega zakona. V dialogu s strokovnimi združenji smo oblikovali operativne usmeritve za uslužbence Geodetske uprave Republike Slovenije, ki vodijo upravni del katastrskega postopka, da pri preizkusu zahtev upoštevajo specifičnosti obdobja uvajanja novosti v postopkih in podatkih in so temu ustrezno pozorni pri pregledu in pozivih za popravo oziroma dopolnitev elaboratov. Vsi postopki črpanja sredstev so bili transparentni in v skladu s predpisi, ki urejajo javno naročanje, ter tudi pod nenehnim nadzorom pristojnih služb v Republiki Sloveniji in pri Evropski komisiji. V fazi načrtovanja so bile izdelane vse študije in ekonomske analize, zahtevane s predpisi, ki opredeljujejo finančno poslovanje državnih organov.
Real estate needs to improve its adoption of disruptive technologies to move from traditional to smart real estate (SRE). This study reviews the adoption of disruptive technologies in real estate. It ...covers the applications of nine such technologies, hereby referred to as the Big9. These are: drones, the internet of things (IoT), clouds, software as a service (SaaS), big data, 3D scanning, wearable technologies, virtual and augmented realities (VR and AR), and artificial intelligence (AI) and robotics. The Big9 are examined in terms of their application to real estate and how they can furnish consumers with the kind of information that can avert regrets. The review is based on 213 published articles. The compiled results show the state of each technology’s practice and usage in real estate. This review also surveys dissemination mechanisms, including smartphone technology, websites and social media-based online platforms, as well as the core components of SRE: sustainability, innovative technology and user centredness. It identifies four key real estate stakeholders—consumers, agents and associations, government and regulatory authorities, and complementary industries—and their needs, such as buying or selling property, profits, taxes, business and/or other factors. Interactions between these stakeholders are highlighted, and the specific needs that various technologies address are tabulated in the form of a what, who and how analysis to highlight the impact that the technologies have on key stakeholders. Finally, stakeholder needs as identified in the previous steps are matched theoretically with six extensions of the traditionally accepted technology adoption model (TAM), paving the way for a smoother transition to technology-based benefits for consumers. The findings pertinent to the Big9 technologies in the form of opportunities, potential losses and exploitation levels (OPLEL) analyses highlight the potential utilisation of each technology for addressing consumers’ needs and minimizing their regrets. Additionally, the tabulated findings in the form of what, how and who links the Big9 technologies to core consumers’ needs and provides a list of resources needed to ensure proper information dissemination to the stakeholders. Such high-quality information can bridge the gap between real estate consumers and other stakeholders and raise the state of the industry to a level where its consumers have fewer or no regrets. The study, being the first to explore real estate technologies, is limited by the number of research publications on the SRE technologies that has been compensated through incorporation of online reports.
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