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| Some Structural Attributes
of Institutional Office Investments Authors: Robert Hess, and Youguo Liang Start Page: 59 Abstract: This study explores some of the less cyclical characteristics of the office investment market. Offices comprise more than one-third of investable commercial real estate by value among the major property types. Private institutional investors allocate about this proportion of offices to their real estate portfolios, but REITs own a somewhat lower proportion by value. The findings indicate that institutional investors have a strong preference for large and/or rapidly growing markets, some preference for newer properties and no discernible investment preferences between CBD and suburban offices. The findings also indicate that office tenancy varies widely across industries, leases run five to ten years and that the average tenant is small.
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