Peter Linneman

University of Pennsylvania | UP · The Wharton School

Purpose – The purpose of this paper is to identify different organizational models concerning both the functions and responsibilities assigned to corporate real estate (CRE) professionals in European and North American companies, as well as to determine the factors that influence the occurrence of these different management models. Design/methodol...

Created in the late 1980s to meet a pressing need for real estate equity capital, these funds have raised more than $100 billion in equity from pension funds and other investors, invested in every form of income-producing property and equity and debt as well as com-panies in homebuilding, construction and development, real estate technology and oth...

The forces changing real estate have changed it forever, though more slowly than many thought. Nonetheless, scale and operational focus are common themes in real estate circles in a way not dreamed of ten years ago. Similarly, the emergence of substantial equity requirements continues to reshape the operation of real estate markets. Public equity m...

As a corporate organizational form, real estate investment trusts (REITs) fall into two competing property management structures: internally advised and externally advised. This study tests the hypothesis that, due to their superior ability to resolve conflicts of interests between REIT management and shareholders, internally-advised REITs will dom...

Efficiency grows, in production and in operations, as size increases. This incentive has led to recent record levels of mergers, acquisitions, and global consolidation in such diverse industries as railroads, oil and gas refining, cement, steel, and brewing. The consolidation of the banking industry after deregulation in the 1980s has had significa...

The Boston Federal Reserve study (Munnell et al. 1996) concluded that illegal discrimination is a statistically significant contributor to the observed gap between white and minority residential-mortgage rejection rates. The Boston study speculated that discrimination arises because lenders do not equally apply risk compensation or mitigation polic...

This paper presents new evidence on the determinants of the large disparities in home ownership by race in the U.S. Consistent with results first reported by P. Linneman and S. M. Wachter (1989,AREOFA J.7, No. 4, 389–402), we find noceteris paribusracial differences in ownership rates among white and minority households who possess sufficient wealt...

Seoul's greenbelt has been maintained for twenty years with little change, although Seoul has grown rapidly. Therefore, Seoul's greenbelt is interesting to examine for the dynamic impacts of a greenbelt regulation in a growing city. These impacts are examined in this article which also exploits a unique time series of Seoul property values (1970-19...

This study has two main objectives. First, we estimate various alternative specifications of the tenure choice model with borrowing constraint variables, originally put forth by Linneman and Wachter, using a more recent sample of the Survey of Consumer Finance. Second, we simulate effects of policy changes governing constraints and changes in mortg...

This paper summarises William G. Grigsby's contribution to our understanding of neighbourhood change. We discuss seven contributions among Grigsby's most-lasting. First, he staked out the boundaries of the still-nascent field very early in his career. Secondly, he situated the subject within the broader framework of metropolitan housing market dyna...

Sociological and economic forces have begun to alter ownership patterns in ways not yet captured by movements in the aggregate ownership rate. While demographic factors such as marital status, and family structure remain influential in determining tenure choice, their impact has waned, particularly among the best educated households and those with...

By drawing largely from the implementation experience of housing privatisation policies in the UK and the US, this paper examines the nature of privatisation and its relationship to housing policy. The paper briefly examines some aspects of the literature on government intervention in the market: the meaning and methods of privatisation, the choice...

For the past 20 yr housing economists have attempted to isolate the factors that determine a household's tenure choice. This paper focuses on several aspects of home ownership research. It is the second of a three-part series on current housing research in developed Western countries. The first paper (Linneman and Megbolugbe, 1992) examined the lit...

This article investigates how the affordability of single-family housing has changed by analyzing whether a home of a given quality from, say, 15 years ago is now more affordable for a household similarly situated to one that occupied the home then. For low-skilled workers occupying low-to moderate-quality homes, ownership is less affordable. Const...

Over the next 3 yr, the authors will write a series of three articles on current housing research in developed countries to examine some of the key housing issues in the US and the UK, drawing upon supplementary examples from other countries. The primary focus of housing research in developed countries has changed dramatically over the last four de...

Space is one of the largest expenses within an organization; land and buildings are a considerable item on corporate balance sheets. European corporations have been slow to realize that real estate assets contribute to their financial performance. European managers of corporate real estate should be aware of the impact of corporate real estate on s...

We investigate the salary returns to the ability to play football with both feet. The majority of footballers are predominantly right footed. Using two data sets, a cross-section of footballers in the five main European leagues and a panel of players in the German Bundesliga, we find robust evidence of a substantial salary premium for two-footed ab...

Institutional investors typically allocate under 5 per cent of their portfolios to income-producing real estate, yet the results of most academic studies imply that far larger allocations are optimal. One widespread argument is that the conflict between observed behaviour and scholarly prediction is spurious in the sense that it arises due to the u...

Use of estimated compensating or equivalent variation benefit measures to analyze the distributional effects of subsidy programs can lead to biased results. The vast majority of previous studies have used average elasticity parameters to calculate individual compensating or equivalent variations. This can lead to measurement errors which are system...

In this paper we estimate alternative models of the growth rate of real housing investment for Japan, Korea, Taiwan, and the U.S. Pure time series models generally provide superior fit to these growth rate data both within and out of the sample period. These time series models are then used to forecast investment growth rates in other countries. Th...

This paper utilizes microdata to directly quantify the impact of mortgage underwriting criteria on individual homeownership propensities. To determine whether a family is constrained by these criteria, the optimal home purchase price is estimated. The results indicate that wealth and income constraints both reduce homeownership propensities, with a...

New evidence on the correlation patterns of various real estate returns with inflation is presented. Returns on a wide array of real estate, nonresidential as well as residential, are investigated. Stock and bond returns are also analyzed for comparison purposes. Extensive heterogeneity is found in real estate return correlations with inflation. No...

In the United States, religious attendance rises sharply with education across individuals, but religious attendance declines sharply with education across denominations. This puzzle is explained if education both increases the returns to social connection and reduces the extent of religious belief, and if beliefs are closely linked to denomination...

This article uses a radically different methodology to address the question of the impact of minimum wage laws on employment and earnings. The methodology uses the adult wage structure which exists prior to a change in the federal minimum wage to identify the members of the subminimum wage population. This allows the parameterization of the disempl...

In this paper we estimate the price premium associated with organic baby food by applying a hedonic model to price and characteristic data for baby food products collected in two cities: Raleigh/Durham, North Carolina and San Jose, California. We use price per jar of baby food as the dependent variable and control for a number of baby food characte...

Tenant base and capital markets are globalizing and up to 60 percent of investment -quality real estate lies outside the U.S. In spite of this, most efforts to create global quality investment portfolios have fallen short. In major foreign markets, outsiders must possess either significant value-added operating ability, or access to "hidden" deals...

In the 1980’s leading commercial operators found it unnecessary to access public equity markets in order to grow, but by 1993, owners needed equity and commercial real estate finance was integrated into the mainstream of global financial markets. Publicly traded real estate companies represent approximately one percent of the value of all US public...