Introduction to the Special Issue
Published online: 27 September 2013
Springer Science+Business Media New York 2013
The papers in this special issue grew out of the 2012 session of the FSU/UF
Symposium on Critical Issues in Real Estate, hosted at the University of Florida.
The theme of the symposium was Commercial Real Estate Issues: Markets, Values
and Risks. The papers that emerged added new facets to diverse spheres of research.
The first three papers are related in that they all contribute to the body of work on
commercial property indices. The remaining five papers span a rich variety of
subjects, including the dynamics of retail property markets, the effect of information
volatility on predictions by commercial property analysts, global IPO performance of
REITS, the use and effect of listed prices in commercial real estate transactions, and
the role of local market characteristics in commercial mortgage default patterns.
Despite the range of subjects, these papers resulted in broad and lively discourse
among the participants of the symposium. We trust that they will stir a lively interest
for the reader as well.
Property price indices are widely recognized as important for real estate lenders,
real estate equity investors, and even as indicators of national financial well-being.
London, as one of the most important commercial property markets in the world has
long had price indices for office property values. Yet there has not existed a
transaction-based index of London office properties. Chegut, Eichholtz and Rodri-
gues, in “The London Commercial Property Price Index,” report efforts to construct
the first such index. Using data on transactions from Estates Gazette Interactive and
Real Capital Analytics, they explore various repeat-sales estimation strategies and
noise filters to obtain a quarterly index. They find data can support the index running
from first quarter of 1997 through fourth quarter of 2011. They test the series against
IPD’s London capital valuation series and the MIT Center for Real Estate New York
office market repeat sales index series. They find that their index leads the capital
valuation series by a year, and clearly signals the financial crisis. Their series also
indicates that the London market was affected by the financial crisis much earlier than
J Real Estate Finan Econ (2013) 47:583–587
The FSU/UF Symposium on Critical Issues in Real Estate is cosponsored by the Kelley A. Bergstrom
Center for Real Estate Studies at the University of Florida, The Center for Real Estate Education &
Research at Florida State University and The DeVoe L. Moore Center at Florida State University.
W. Archer (*)
Warrington College of Business Administration, University of Florida, Gainesville, FL, USA