|
Articles:
Indices for Investment Benchmarking and Return Performance Analysis in Private Real Estate Authors: David Geltner and David C. Ling Start Page: 93 Abstract:
In U.S. commercial real estate
markets, a single index product produced by the National Council of Real
Estate Investment Fiduciaries (NCREIF) has been used for both asset class
research and for agent evaluation benchmarking. While the NCREIF Index is an
invaluable tool for the U.S. real estate investment industry, in some
respects its construction is not optimized for either research or the
benchmarking function, though the gap between the reality and the ideal is
arguably greatest on the research side. This paper first discusses the
purpose of the ideal research index, the optimal depth and breadth of market
coverage, and the type of information included in the research index
database. This discussion is followed by an analysis of the ideal agent
evaluation benchmark index, including the definition, purpose, and uses of
evaluation benchmarking, the characteristics of the ideal benchmark index,
market coverage and information considerations, and a comparison of
benchmark indices in the private real estate market to comparable indices
used to benchmark public securities. |
|