IPF Webinar: Reconciling the Predictability of Returns from Commercial Real Estate Yields

Returns from real estate are driven by the commercial real estate yield at the start and changes in the cap rate and income over the holding period. Cap rates vary over time and these changes can be attributed to changes in expected cash flow growth, risk-free rates, or risk premia. As previous research into cap rates and ex-post returns has found that the relationship does not always hold true, the IPF Research Programme awarded a grant to the research team from University of Cambridge to explore whether commercial real estate yields are predictors of excess returns and, if not, why not?
This webinar presents the findings and conclusions of the research team.

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