Office Real Estate as a Hedge against Inflation and the Impact of Lease Contracts

IF 0.4 Q4 BUSINESS, FINANCE
Ivo de Wit
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引用次数: 0

Abstract

This article analyzes the hedging potential of real estate and especially looks at the impact of lease contracts in various countries around the world on the inflation hedge capability for both expected and unexpected inflation. The dataset consists of direct real estate rent and capital value data for 59 cities/MSAs in 25 countries between 1991 and 2020 to make international comparison over a long time period possible. The results indicate that real estate is a good hedge against inflation, and especially against unexpected inflation. The inflation hedge capability of real estate is better for income than for change in capital value, as rent contracts are adjusted for inflation. Countries with graduated rent and revaluated rent contracts have the most positive relationship with inflation. The analysis of the lease length confirms that real estate is a better hedge against unexpected inflation, but increasing the lease length does not seem to have a positive influence on the hedge capability against unexpected inflation.
办公室房地产作为对冲通货膨胀和租赁合同的影响
本文分析了房地产的对冲潜力,特别是世界各国的租赁合同对预期和意外通货膨胀的通胀对冲能力的影响。该数据集由1991年至2020年间25个国家59个城市/澳门特别行政区的直接房地产租金和资本价值数据组成,以便进行长期的国际比较。研究结果表明,房地产是抵御通货膨胀,尤其是抵御意外通货膨胀的良好对冲工具。房地产的通胀对冲能力对收入的影响大于对资本价值变化的影响,因为租金合同是根据通胀进行调整的。具有分级租金和重估租金合同的国家与通货膨胀的关系最为积极。对租赁期限的分析证实,房地产是抵御意外通胀的更好对冲工具,但增加租赁期限似乎对抵御意外通胀能力没有积极影响。
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来源期刊
CiteScore
1.50
自引率
14.30%
发文量
40
期刊介绍: The Journal of Alternative Investments (JAI) provides you with cutting-edge research and expert analysis on managing investments in hedge funds, private equity, distressed debt, commodities and futures, energy, funds of funds, and other nontraditional assets. JAI is the official publication of the Chartered Alternative Investment Analyst Association (CAIA®). JAI provides you with challenging ideas and practical tools to: •Profit from the growth of hedge funds and alternatives •Determine the optimal mix of traditional and alternative investments •Measure and track portfolio performance •Manage your alternative investment portfolio with proven risk management practices
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