This paper examines the impact of large scale ownership on commercial real estate sales and selling price premiums. It also examines whether Energy Star premiums found in the literature are a result of a signal for an ownership brand effect rather than the label itself. The results suggest that large scale owners generate significant market rental premiums, indicating a potential brand effect. The effect sales prices is mixed when buyers will manage the property in the future. The paper argues that large scale owners create a brand effect by reducing information asymmetry in the market in the commercial real estate leasing market. Results further show that the price and rental premium associated with the Energy Star designation by the literature might signal the brand effect to the market.
|Journal||Journal of Real Estate Portfolio Management|
|State||Published - Jan 2018|