Research and publications
Optimal Market Estimates of French Office Property Performance
In the world of institutional investment, the performance of the office property sector has traditionally been valued using indices constructed from appraisal values, rather than values derived from transactions. These indices constructed from appraised values are obtained by gathering in a single database property experts’ valuations of the largest possible number of institutional portfolios invested in office properties. This analysis is carried out in a comprehensive manner so as to diversify away the idiosyncratic risk of each property. Appraisals requiring a lot of information and technical resources can only be performed at long intervals – typically at the end of each year. A considerable amount of time is required to gather and process them, resulting in the indices being released after several months of delay.
Author(s):
Pierre Schoeffler
Summary:
In the world of institutional investment, the performance of the office property sector has traditionally been valued using indices constructed from appraisal values, rather than values derived from transactions. These indices constructed from appraised values are obtained by gathering in a single database property experts’ valuations of the largest possible number of institutional portfolios invested in office properties. This analysis is carried out in a comprehensive manner so as to diversify away the idiosyncratic risk of each property. Appraisals requiring a lot of information and technical resources can only be performed at long intervals – typically at the end of each year. A considerable amount of time is required to gather and process them, resulting in the indices being released after several months of delay.
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Register/Log in| Type : | EDHEC Publication |
|---|---|
| Date : | 04/04/2012 |
| Keywords : |
Indexes and Benchmarking |
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