The liquidity of UK commercial real estate

Fernanda Antunes, Matthew Pollock and Michael White

ERES from European Real Estate Society (ERES)

Abstract: The trade of commercial real estate is distinguished by its intrinsic costs and time-consuming nature, which carries implications for the performance and risk associated with real estate investments. The Time on the Market (ToM), representing the duration a property actively remains listed, constitutes a pivotal metric for evaluating market liquidity within the real estate sector. Our research investigates the temporal aspects of commercial real estate transactions in the United Kingdom, employing data derived from CoStar and scrutinising a sample encompassing approximately 6,500 transactions spanning the interval from 2013 to 2023.Our findings reveal fluctuations within the ToM indicator. For instance, in 2023, the median duration on the market for office properties amounted to 220 days, whereas for industrial properties, this metric was notably lower at 165 days. This observed variation underscores the inherently dynamic nature inherent in commercial real estate transactions, emphasising the imperative of comprehending and gauging market liquidity by means of the ToM metric.

Keywords: commercial real estate; Liquidity; time on the market; UK (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2024-059 (text/html)
https://architexturez.net/system/files/P_20240623210507_2041.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2024-059

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().