Emerging distress in the US real estate market? Dangers in the current market and tools to mitigate risk

A. Floyd Lattin, Amachie K. Ackah
{"title":"Emerging distress in the US real estate market? Dangers in the current market and tools to mitigate risk","authors":"A. Floyd Lattin,&nbsp;Amachie K. Ackah","doi":"10.1002/bref.59","DOIUrl":null,"url":null,"abstract":"<p>Despite the recent downturn in the US economy, real estate has remained an extremely attractive investment class. Although the market has softened, property investors have, to date, been largely insulated from distress. Commercial real estate provides investors with cash flow; a hedge against price instability; low correlation to other asset classes; and low volatility of returns. While of these characteristics provide investors potential refuge, they need to be managed, particularly in difficult economic times. Credit risk, leverage risk, geographic market risk, and exit risk are all important elements. Although the US real estate industry, for once, has not been a cause of the recession, understanding and managing these risks is important for the commercial property market to escape the effects of the current downturn. These facts have placed stress on the property market and forced new roles on all participants in the capital structure of real estate investments. This paper will outline various dangers in the current real estate market as well as highlight tools that the industry can use that may mitigate these risks. The paper will also attempt to quantify today's property market dynamics in an effort to plot the current phase of the cycle. Copyright © 2002 Henry Stewart Publications.</p>","PeriodicalId":100200,"journal":{"name":"Briefings in Real Estate Finance","volume":"2 2","pages":"113-128"},"PeriodicalIF":0.0000,"publicationDate":"2006-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1002/bref.59","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Briefings in Real Estate Finance","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/bref.59","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

Despite the recent downturn in the US economy, real estate has remained an extremely attractive investment class. Although the market has softened, property investors have, to date, been largely insulated from distress. Commercial real estate provides investors with cash flow; a hedge against price instability; low correlation to other asset classes; and low volatility of returns. While of these characteristics provide investors potential refuge, they need to be managed, particularly in difficult economic times. Credit risk, leverage risk, geographic market risk, and exit risk are all important elements. Although the US real estate industry, for once, has not been a cause of the recession, understanding and managing these risks is important for the commercial property market to escape the effects of the current downturn. These facts have placed stress on the property market and forced new roles on all participants in the capital structure of real estate investments. This paper will outline various dangers in the current real estate market as well as highlight tools that the industry can use that may mitigate these risks. The paper will also attempt to quantify today's property market dynamics in an effort to plot the current phase of the cycle. Copyright © 2002 Henry Stewart Publications.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
美国房地产市场正在出现困境?当前市场的危险和降低风险的工具
尽管最近美国经济低迷,房地产仍然是一个极具吸引力的投资类别。尽管市场已经走软,但迄今为止,房地产投资者基本上没有受到危机的影响。商业地产为投资者提供现金流;对冲:对价格不稳定的对冲;与其他资产类别相关性较低;低波动性的回报。虽然这些特征为投资者提供了潜在的庇护,但它们需要加以管理,尤其是在经济困难时期。信用风险、杠杆风险、地域市场风险和退出风险都是重要的因素。尽管美国房地产业这一次没有成为经济衰退的原因,但理解和管理这些风险对于商业房地产市场摆脱当前低迷的影响至关重要。这些事实给房地产市场带来了压力,并迫使房地产投资资本结构中的所有参与者都必须扮演新的角色。本文将概述当前房地产市场的各种危险,并强调该行业可以使用的工具,以减轻这些风险。本文还将尝试量化今天的房地产市场动态,以绘制当前周期阶段的图。版权所有©2002 Henry Stewart Publications。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
自引率
0.00%
发文量
0
期刊最新文献
Advances in quantifying risk in commercial real estate lending Leverage in real estate investments: an optimization approach Holding period effect and home price indexes: a dynamic analysis Top 10 securitizable loan negotiations† Real estate loan delinquency, property prices and alternative income opportunities
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1