The Price Implications of “Standing Out”
||Das, Prashant; Patrick Smith; Paul Gallimore
||The Price Implications of “Standing Out”
||23rd Annual European Real Estate Society Conference in Regensburg, Germany
||Conspicuous features of a commercial real estate asset may qualify it either as “atypical” or “trophy.” Past studies on this topic are fragmented and suggest conflicting price impacts of the two qualities. This is the first study to robustly measure the price implication of conspicuous commercial assets. We geospatially enrich a dataset of nearly 5000 hotel transactions consolidated from two independent sources. We detect asymmetric impact across locally versus nationally superlative features. In particular, locally largest hotels are discounted while the nationally largest ones enjoy premiums. High status of the locality leads to significant price premium after controlling for submarket effects. Also, news coverage is associated with significant price premium.
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||Real Estate Investment
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