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| Institutional Real Estate Investing
Processes, Due Diligence Practices and Market Conditions Authors: Stephen E. Roulac Start Page: 387 Abstract: The
institutionalization of the real estate capital markets has created a market in which
those who put capital markets has created a market in which those who put capital at risk
are increasingly separated from those who make the investment decisions. Investors expect
their investment fiduciaries' actions to be consistent with the prudent man standard,
employing appropriate due diligence prior to investing. Effective due diligence can
improve the prospects of investment performance and mitigate loss exposure. The findings
confirm that more resources are devoted to due diligence during times of difficult market
conditions than during times of optimistic expectations. The preponderance of due
diligence factors are considered by the institutional investor to be important, indicating
that for it to be effective, it must be comprehensively rather than selectively
implemented. |
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