Maestros and mythologies: some lockdown reflections

Colin Lizieri

Journal of Property Investment & Finance, 2020, vol. 39, issue 1, 38-43

Abstract: Purpose - The paper reflects upon the tendency of participants in the commercial real estate markets to give excess status to individuals in decision-making and to hold beliefs that are at best weakly supported empirically. Design/methodology/approach - The paper is reflexive in nature, using experiential reflection to consider institutional processes in the real estate market. It is important to use “methodology” correctly and not as a synonym of “method”. Findings - Using reflexive mode, the paper does not have “findings” as such: if the views expressed are accepted, then a research agenda to understand decision-making processes is implied. Research limitations/implications - The nature of reflection is that it follows from the writer's experiential processes and interpretations. The reader may come from a different stance. Broadly accepting the propositions points to the need for a contextual analysis of decision-making processes in private real estate and consideration of the implications of privileging individual idiosyncratic decisions over analytic procedures. Practical implications - Prior research has demonstrated the lack of a back-testing culture in real estate that would allow empirical analysis of the consequences of “gut feel” decisions overriding modelled analysis; further, entrenched beliefs about the drivers of market performance might result in misallocation of resources. Social implications - Resource allocation in commercial real estate has important consequences for land use and urban and regional development. Originality/value - The paper reflects the views and experience of the author based on over 30 years of research into commercial real estate.

Keywords: Performance measurement; Decision-making; Behaviour; Uncertainty; Risk and return; Investment strategy (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpifpp:jpif-06-2020-0070

DOI: 10.1108/JPIF-06-2020-0070

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