Search results

1 – 10 of over 3000
To view the access options for this content please click here
Article
Publication date: 18 November 2013

Steven Devaney and David Scofield

Commercial real estate is a highly specific asset: heterogeneous, indivisible and with less information transparency than most other commonly held investment assets. These…

Abstract

Purpose

Commercial real estate is a highly specific asset: heterogeneous, indivisible and with less information transparency than most other commonly held investment assets. These attributes encourage the use of intermediaries during asset acquisition and disposal. However, there are few attempts to explain the use of different brokerage models (with differing costs) in different markets. This study aims to address this gap.

Design/methodology/approach

The study analyses 9,338 real estate transactions in London and New York City from 2001 to 2011. Data are provided by Real Capital Analytics and cover over $450 billion of investments in this period. Brokerage trends in the two cities are compared and probit regressions are used to test whether the decision to transact with broker representation varies with investor or asset characteristics.

Findings

Results indicate greater use of brokerage in London, especially by purchasers. This persists when data are disaggregated by sector, time or investor type, pointing to the role of local market culture and institutions in shaping brokerage models and transaction costs. Within each city, the nature of the investors involved seems to be a more significant influence on broker use than the characteristics of the assets being traded.

Originality/value

Brokerage costs are the single largest non-tax charge to an investor when trading commercial real estate, yet there is little research in this area. This study examines the role of brokers and provides empirical evidence on factors that influence the use and mode of brokerage in two major investment destinations.

Details

Journal of European Real Estate Research, vol. 6 no. 3
Type: Research Article
ISSN: 1753-9269

Keywords

To view the access options for this content please click here
Book part
Publication date: 1 November 2018

Wasukarn Ngamchom, Malai Kamolsakulchai, Thanomsak Suwannoi and Jutamas Wongkantarakorn

This study provides practical implications for brokerage firms to utilize the importance of corporate governance fundamentals in marketing the equity securities. It models…

Abstract

This study provides practical implications for brokerage firms to utilize the importance of corporate governance fundamentals in marketing the equity securities. It models a structural relationship of board qualification, management competency, transparent corporate disclosure, and earning quality to the intention to invest. Data were collected from 1,410 investors who were asked about their investment intentions in the 13 ASEAN-Stars Thai listed companies. The investors in our model form their investment attitudes based on the company’s earning quality which is determined by its corporate governance attributes. The results show that corporate governance fundamentals significantly influence the investors’ perception on the company’s perceived earning quality and that the perceived earning quality has a significant positive effect on the investors’ intention to invest in the company. Our findings can help marketers at brokerage firms to persuade their customers to invest if they recommend equity securities of good governance companies.

Details

International Corporate Governance and Regulation
Type: Book
ISBN: 978-1-78756-536-4

Keywords

To view the access options for this content please click here
Article
Publication date: 1 December 2004

Gerald R. Brown and Tien Foo Sing

Time on the market (TOM) has been widely tested in the US real estate literature using listing and selling data of houses captured in the multiple listing services (MLSs)…

Abstract

Time on the market (TOM) has been widely tested in the US real estate literature using listing and selling data of houses captured in the multiple listing services (MLSs). Unfortunately in the UK there are no MLSs so it is not possible to undertake similar analyses. The approach adopted in this paper differs from traditional TOM analyses in that it focuses on the speed or time the market takes to correct for information differences between open market valuations and traded prices. In this context the paper introduces the concept of equilibrium time on the market (ETOM). The study therefore adopts a different approach to estimating TOM and in addition also examines the phenomenon within the UK commercial real estate sector. Based on a simple present value model, the time taken for the difference between an appraiser's estimate of open market value and known selling prices define our time on the market under equilibrium market conditions. Using the annualised UK Investment Property Databank all‐property total return index for a sample period of 17 years between 1983 and 1999, the average ETOM was estimated to be 8.4 months. This figure, however, varied and depended on market conditions.

Details

Journal of Property Investment & Finance, vol. 22 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

To view the access options for this content please click here
Book part
Publication date: 25 July 2008

Ronald S. Burt

What is the scope of brokerage network to be considered in thinking strategically? Given the value of bridging structural holes, is there value to being affiliated with…

Abstract

What is the scope of brokerage network to be considered in thinking strategically? Given the value of bridging structural holes, is there value to being affiliated with people or organizations that bridge structural holes? The answer is “no” according to performance associations with manager networks, which raises a question about the consistency of network theory across micro to macro levels of analysis. The purpose here is to align manager evidence with corresponding macro evidence on the supplier and customer networks around four-digit manufacturing industries in the 1987 and 1992 benchmark input–output tables. In contrast to the manager evidence, about 24% of the industry-structure effect on industry performance can be attributed to structure beyond the industry's own buying and selling, to networks around the industry's suppliers and customers. However, the industry evidence is not qualitatively distinct from the manager evidence so much as it describes a more extreme business environment.

Details

Network Strategy
Type: Book
ISBN: 978-0-7623-1442-3

To view the access options for this content please click here
Article
Publication date: 18 April 2008

Stephen W.K. Mak, Lennon H.T. Choy and Winky K.O. Ho

The objective of this paper is to propose the use of transaction data, hedonic model and internet‐based technologies to provide potential home buyers and sellers with…

Abstract

Purpose

The objective of this paper is to propose the use of transaction data, hedonic model and internet‐based technologies to provide potential home buyers and sellers with instant and online property appraisal services by real estate‐related firms.

Design/methodology/approach

Hedonic price model is performed to estimate the price index of individual housing estate. The values of the coefficients of the attributes may change in response to a changing environment. A professional judgment should be given by appraisers on time intervals to re‐run the hedonic price models, if needed. Once the algorithms have been updated, authenticated users can connect to the system via a secure socket layer. They can browse and search the valuation reports by entering search criteria of premises into the system that filters the results instantly according to the request of users, and a detailed asset valuation report will be displayed in the browser.

Findings

This sort of online services is believed to save consumers' time, by offering timely property appraisal services that facilitate property transactions.

Originality/value

Currently, local large property developers, agencies and surveying firms are still relying on manual processes of providing selected transaction data via the web to their prospective customers. The system proposed and developed as described in this paper is an automatic and self‐learning system that produces reliable and authentic results based on large quantity of historical transaction records. The professional judgments of appraisers add flavor to the final valuation of properties. As well as providing information to individual buyers/sellers, the system is most suitable to investors who own a large portfolio of properties as the total capitalization of the portfolio can be computed easily and quickly. REITs are examples of these portfolio owners.

Details

Construction Innovation, vol. 8 no. 2
Type: Research Article
ISSN: 1471-4175

Keywords

To view the access options for this content please click here
Article
Publication date: 1 December 2005

Joseph Calandro and Robert Flynn

Many insurance companies vigorously pursue top‐line growth, even though it has the potential to develop unprofitably over time. The time lag (or tail) between when

Abstract

Purpose

Many insurance companies vigorously pursue top‐line growth, even though it has the potential to develop unprofitably over time. The time lag (or tail) between when insurance is sold and when claims are paid generates risks unique to insurance companies. Furthermore, the insurance market is both mature and efficient (i.e. its level of competitive risk is very high), which means that profitable opportunities are both rare and untenable unless protected by competitive advantage. There is currently no practical measure available (of which the authors are aware) at the business unit level to evaluate insurance premium growth in the face of the industry's risks, impairing executives' ability to assess segment opportunities (and hazards), thus hampering strategic decision making. The purpose of this paper is to introduce a practical measure developed by the authors called Underwriting Return (UWR) which aims at helping to alleviate this situation.

Design/methodology/approach

The paper introduces UWR which was developed during the course and scope of the authors' work in the insurance industry, and their research into applying value‐based management to that industry.

Findings

The paper finds that UWR is a practical measure that property and casualty executives can use at the business unit level to help quantify market segments to grow, hold, harvest and abandon.

Originality/value

A variety of strategic analysis tools, such as the popular Boston Consulting Group matrix, are utilized today. In general, the application of such tools is hampered by an imprecision of measurement but each can add a level of insight to executives' resource allocation options. UWR can further aid insurance executives in strategic analysis by helping to quantify in which segments to compete, and which ones to abandon. The paper demonstrates the utility of the measure in an example based on an actual analysis.

Details

Measuring Business Excellence, vol. 9 no. 4
Type: Research Article
ISSN: 1368-3047

Keywords

To view the access options for this content please click here
Article
Publication date: 1 June 2002

George K. Chacko

Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade…

Abstract

Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange for Auto Parts procurement by GM, Ford, Daimler‐Chrysler and Renault‐Nissan. Provides many case studies with regards to the adoption of technology and describes seven chief technology officer characteristics. Discusses common errors when companies invest in technology and considers the probabilities of success. Provides 175 questions and answers to reinforce the concepts introduced. States that this substantial journal is aimed primarily at the present and potential chief technology officer to assist their survival and success in national and international markets.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 14 no. 2/3
Type: Research Article
ISSN: 1355-5855

Keywords

To view the access options for this content please click here
Article
Publication date: 5 January 2021

Ilkim Markoc and Fusun Cizmeci

This paper aims to discuss unethical behaviors that small real estate agencies encounter in real estate brokerage practices, the factors that give rise to a trust issue…

Abstract

Purpose

This paper aims to discuss unethical behaviors that small real estate agencies encounter in real estate brokerage practices, the factors that give rise to a trust issue and the potential of legal arrangements for offering a solution. Small real estate agencies, almost the only actor in the real estate brokerage industry until the late twentieth century, still strive to survive despite the globalized market, large corporations increasingly dominating the market, the increasing informality and the real estate portals offering certain brokerage services online. While all these developments put pressure on small real estate agencies, the industry’s unethical behaviors diminish their reliability. Despite the efforts to overcome this issue through legal arrangements, the extent to which these regulations will be successful is still a matter of intense debate.

Design/methodology/approach

In total, 85 small real estate agencies operating in Istanbul, Turkey, were posed semi-structured open-ended questions and asked to provide an opinion about the unethical behaviors they face and the potential of a legal arrangement to solve those problems. In the second stage, three focus group interviews were held with representatives from large real estate brokerage companies to make a comparison and they were also posed similar questions. The answers were evaluated using content analysis.

Findings

It was found that the unethical behaviors in the real estate industry could mainly be evaluated in two categories, i.e. those stemming from structural problems of the industry and those stemming from problems related to service delivery and that a legal arrangement could only solve the first category.

Research limitations/implications

The research is limited to small real estate agencies that operate in Istanbul, the heart of the Turkish economy and the biggest city of the country where intensive efforts are spent to integrate into the global order.

Originality/value

It is considered that categorization of the causes of problems encountered by the numerous small real estate agencies that struggle to survive in the market and an analysis of the root causes of unethical behaviors in the industry and a discussion on potential solutions that may be brought bylaws will contribute to the literature.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

To view the access options for this content please click here
Article
Publication date: 10 May 2011

Tom Groot, Peter Risseeuw and Eelke Wiersma

The purpose of this paper is to explore how scale and scope of operations, firm age, and the choice to join a franchise formula influences brokerage firms' efficiency.

Abstract

Purpose

The purpose of this paper is to explore how scale and scope of operations, firm age, and the choice to join a franchise formula influences brokerage firms' efficiency.

Design/methodology/approach

Four‐year data of 1,282 Dutch real estate brokerage firms is used to compute a relative efficiency measure for all firms. Consecutively, variation in this efficiency measure is explained from the firm and market characteristics.

Findings

The results show that scale and scope have a non‐linear, U‐shaped, relationship with efficiency. A reversed U‐shaped relationship is found between age and efficiency. Finally, being a member of a franchise does not necessarily lead to improved efficiency, but it depends on the franchise formula terms used.

Practical implications

Based on these results, managers of real estate brokerage firms are able to reconsider their own organizational design choices.

Originality/value

Compared to prior studies, this study uses data from multiple years. Further, the analysis also incorporates non‐linear effects of scale, scope and age on efficiency. Finally, prior research has only compared efficiency of franchise versus independent firms. This study shows that benefits of a franchise depend on the contract terms.

Details

Journal of European Real Estate Research, vol. 4 no. 1
Type: Research Article
ISSN: 1753-9269

Keywords

To view the access options for this content please click here
Article
Publication date: 24 March 2020

Albert Saiz

Digital and information technologies (IT) are becoming silently pervasive in old-fashioned real estate markets. This paper focuses on three important avenues for the…

Abstract

Purpose

Digital and information technologies (IT) are becoming silently pervasive in old-fashioned real estate markets. This paper focuses on three important avenues for the diffusion of IT in commercial real estate: online brokerage and sales, the commoditization of space and Fintech in mortgage and equity funding. We describe the main new markets and products created by this IT revolution. The focus is on the pioneering US market, with some attention devoted to the specific firms and institutions taking these innovations into the mainstream. We also carefully analyze the economic underpinnings from which the new technologies can expect to generate cash flows, thus becoming viable—or not. Finally, we discuss their likely impact on established players in the commercial real estate arena.

Design/methodology/approach

In this paper, the author chooses to focus on three separate arenas where the IT revolution—sometimes referred to as Proptech, as applied to real estate—is having discernible impacts: sales and brokerage, space commoditization and online finance platforms. The author invites the reader to think seriously about the economic fundamentals that may—or may not—sustain new business models in Proptech. Real estate economists and investors alike need to be critical of new business models, especially when they are being aggressively marketed by their promoters. Trying to avoid any hype, the author provides thoughts about the likely impact of the innovations on their markets, guided by economic and finance theory, and previous experience.

Findings

The author evaluates the evolution of commercial real estate brokerage. While innovations will, no doubt, have an impact on the ways in which we buy and lease commercial properties, the lessons from the housing market should make us skeptical about the possibility of the new technologies dramatically facilitating disintermediation in this market. In fact, new oligopolies seem to be emerging with regard to market data provision.

Practical implications

Proptech will change some aspects of the real estate industry, but not others!

Originality/value

As change pervades the property industry, only a relatively few research pieces are illustrating or—more importantly—providing insights about the likely economic and financial impacts of IT penetration. Similarly, only a few papers have so far addressed the economic viability of the alternative business models of tech startups targeting real estate markets and transactions.

Details

Journal of Property Investment & Finance, vol. 38 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

1 – 10 of over 3000