Title
Does the absence of share deals distort commercial real estate indicators?
Author
Ishaak, F.F. (TU Delft Real Estate Management; Statistics Netherlands (CBS))
van Schie, Ron (Statistics Netherlands (CBS))
de Haan, J.G. (TU Delft Structural Integrity & Composites; Statistics Netherlands (CBS))
Remøy, H.T. (TU Delft Real Estate Management) 
Date
2023
Abstract
Purpose: Commercial real estate (CRE) indicators typically include asset deals and exclude share deals. This study aims to explore the phenomenon of real estate share deals and assess whether omitting these transactions results in indicators that do not accurately reflect the market. Design/methodology/approach: Various registers in the Netherlands were used to estimate transaction volumes, total values and price developments of both share and asset deals. Share deals are company transfers and its transactions cover more than real estate. To estimate the contribution of real estate in share deals, valuations were used. Findings: In the Netherlands, share deals are most prominent for rental dwellings. Adding share deals to volume and value indicators seems required. In price development estimates, significant differences were found for dwellings between share and asset deals. Price indices should, therefore, also include share deals, but in practice this is difficult and has little impact on the outcomes due to the low weight of share deals. Research limitations/implications: Legislation has a major impact on choosing a share or asset deal. The significance of share deals is expected to vary amongst countries. Performing similar research in other countries will contribute in harmonising real estate indicators. Practical implications: Statistical agencies face many challenges in the construction of CRE indicators. This study provides statisticians knowledge that can be used to evaluate possible data gaps. Originality/value: This is the first study to estimate indicators of real estate share deals and compare these to asset deal indicators.
Subject
Asset deal
Commercial property price indices (CPPIs)
Share deal
To reference this document use:
http://resolver.tudelft.nl/uuid:18495a2f-830a-4bce-9b55-6723e6479137
DOI
https://doi.org/10.1108/JERER-04-2022-0011
Embargo date
2024-03-07
ISSN
1753-9269
Source
Journal of European Real Estate Research, 16 (2), 220-237
Bibliographical note
Green Open Access added to TU Delft Institutional Repository 'You share, we take care!' - Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
Part of collection
Institutional Repository
Document type
journal article
Rights
© 2023 F.F. Ishaak, Ron van Schie, J.G. de Haan, H.T. Remøy