The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks

2022 ◽  
pp. 0308518X2110675
Author(s):  
Lisha He ◽  
Mia M Bennett ◽  
Ronghao Jiang
Keyword(s):  
Real Estate ◽  
Institutional Environment ◽  
State Level ◽  
State Intervention ◽  
Private Enterprises ◽  
Local Market ◽  
Real Estate Investment ◽  
Mainland Chinese ◽  
Chinese Investment ◽  
The U.S

Since the 2010s, foreign direct investment in real estate (FDIRE) by Mainland Chinese firms has emerged as a major force within global real estate markets, challenging Western investors’ traditional dominance. It is unclear, however, whether Mainland Chinese FDIRE is fueled by the same motivations as those of investors from advanced economies, which to date have represented both the primary investors and main objects of study. One major difference may be that Mainland Chinese investment originates in an institutional environment comprised of strong state intervention and social networks important for fostering business and ethnic ties. To uncover the potentially unique determinants and heterogeneity of Mainland Chinese corporate real estate investors, we build and analyze a state-level panel dataset of Mainland Chinese FDIRE by state-owned enterprises and private enterprises in the U.S. from 2010 to 2017. Our empirical results reveal the importance of Chinese migrants in promoting Mainland Chinese real estate investment, especially by private enterprises. Our findings also demonstrate that at the state level, Mainland Chinese FDIRE exhibits few agglomerative tendencies.

scholarly journals The Impact of Single-Family Rental REITs on Regional Housing Markets: A Case Study of Nashville, TN

Societies ◽  
2018 ◽  
Vol 8 (4) ◽  
pp. 93 ◽  
Author(s):  
Ken Chilton ◽  
Robert Silverman ◽  
Rabia Chaudhrey ◽  
Chihaungji Wang
Keyword(s):  
Real Estate ◽  
Census Data ◽  
Housing Markets ◽  
Future Research ◽  
Individual Investors ◽  
Single Family ◽  
Real Estate Investment ◽  
Wealth Concentration ◽  
The Impact ◽  
The U.S

The U.S. Congress authorized the creation of real estate investment trusts (REITs) in 1960 so companies could develop publically traded real estate investment portfolios. REITs focus on commercial property, retail property, and rental property. During the last decade, REITs became more active in regional housing markets across the U.S. Single-family rental (SFR) REITs have grown tremendously, buying up residential properties across the country. In some regional housing markets, SFR REITs own noticeable shares of single-family homes. In those settings, SFR REITs take large numbers of housing units off of real estate markets where homeownership transactions occur and manage these properties as part of commercial rental inventories. This has resulted in a new category of multiple property owners, composed of institutional investors as opposed to individual investors, which further exacerbates property wealth concentration and polarization. This study examines the socio–spatial distribution of properties in SFR REIT portfolios to determine if SFR REIT properties tend to cluster in distinct areas. This study will focus on the regional housing market in Nashville, TN. Nashville has one of the most active SFR REIT sectors in the country. County tax assessor records were used to identify SFR REIT properties. These data were joined with U.S. Census data to create a profile of communities. The data were analyzed using SPSS statistical software and GIS software. Our analysis suggests that neighborhoods with clusters of SFR REITs fit the SFR REIT business model. Clusters occur in communities with newer homes, residents with higher levels of educational attainment, and middle to upper-middle incomes. The paper concludes with several recommendations for future research on SFR REITs.

scholarly journals State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

2020 ◽  
Vol 12 (3) ◽  
pp. 1019 ◽  
Author(s):  
Xing Su ◽  
Zhu Qian
Keyword(s):  
Real Estate ◽  
Land Development ◽  
State Intervention ◽  
Land Policy ◽  
Real Estate Investment ◽  
Central State ◽  
Land Supply ◽  
Chinese Cities ◽  
Investment In China ◽  
The Impact

State intervention in land supply can be a powerful tool in shaping real estate investment. Yet, few studies have examined the effect of central state intervention on land supply at the municipal level and the impact of land supply on real estate investment with respect to different tiers of prefecture-level cities in China. Varying central–local dynamics of land supply in different tiers of cities, and the often taken-for-granted relationship between land supply and real estate investment, warrant further investigation. This study aims to fill these gaps. It is found that the multi-purposed central land policy and the varying land leasing strategies adopted by different tiers of cities contribute to the varying land supply trajectories, calling for more nuanced and better-tailored central land policies that focus on the socioeconomic conditions of cities. The general significant and positive correlation between land supply and real estate investment, revealed by a panel regression analysis incorporating 280 prefecture-level Chinese cities, suggests that land supply control can function as a critical tool in governing real estate investment in China, which also sheds light on the governance and promotion of sustainable real estate markets in other parts of the world. This study also reveals a higher possibility of land speculation in first- and second-tier cities than that of low-tier cities. The nuanced correlations between land supply and real estate investment and the varying land development strategies employed in different tiers of Chinese cities imply that the effectiveness of land supply intervention in shaping healthy real estate investment may depend on local contingencies, calling for meticulous and tailored governance on land supply and real estate investment behaviors.

scholarly journals U.S. REITs: A Financial Economics Review as of 2018

2019 ◽  
Vol 27 (2) ◽  
pp. 20-32
Author(s):  
Cuono Massimo Coletta ◽  
Francesco Busato
Keyword(s):  
Real Estate ◽  
Financial Economics ◽  
Real Estate Investment Trust ◽  
Real Estate Investment ◽  
Actual Structure ◽  
Continuous Evolution ◽  
Research Themes ◽  
The 1960S ◽  
The U.S ◽  
Over Time

Abstract The U.S. Real Estate Investment Trust (REIT) sector, since its inception in the 1960s, has been witness to continuous evolution. The numerous events that have characterized its growth and its actual structure over time have made this sector an object of interest many researchers and authors, who tried to give answers to several financial questions that are still open to debate. We contend that a global review of financial literature on this specific industry could give good suggestions for further research themes for all those who are interested in studying the U.S. REIT market and its characteristics and for investors at large.

Policy implications of structural options in the development of real estate investment trusts in Europe

2002 ◽  
Vol 20 (4) ◽  
pp. 388-405 ◽  
Author(s):  
Robert D. Campbell ◽  
C.F. Sirmans
Keyword(s):  
Real Estate ◽  
Institutional Environment ◽  
Public Investment ◽  
International Taxation ◽  
Policy Implications ◽  
Corporate Structure ◽  
Real Estate Investment ◽  
The Real ◽  
The Real Estate ◽  
Policy Paper

This is a policy paper that examines the most important issues that must be addressed in designing the institutional structure for tax‐advantaged public real estate companies in Europe. The real estate investment trust form of corporate structure was first created in the USA in 1960. In Europe, the real estate invstment trust (REIT) regime has been authorized only in The Netherlands, and very recently in Belgium. However, the establishment of REIT‐like public investment vehicles is under discussion in the UK, and in several Continental European nations. Advocates of European REITs believe that these investment vehicles would reduce costs of capital, improve liquidity in local real estate markets, and promote more efficient allocation of capital. European countries that are moving toward the establishment of REITs face a series of important decisions regarding the features of the institutional environment in which these firms will operate. This paper summarizes the most important decisions that must be made, and considers the policy implications of each. We conclude that the US model should not be adopted uncritically in Europe; instead, structural options should be considered carefully. Problems of international taxation are identified, and the possible development of a pan‐European REIT structure is discussed.

scholarly journals International Real Estate Review

2011 ◽  
Vol 14 (2) ◽  
pp. 240-257
Author(s):  
John F. McDonald ◽  
Keyword(s):  
Real Estate ◽  
Limited Liability ◽  
Financial Leverage ◽  
Real Estate Investment ◽  
Double Taxation ◽  
Theoretical Examination ◽  
Estate Property ◽  
Risk Free Rate ◽  
Free Rate ◽  
The U.S

This paper is a theoretical examination of untaxed and taxed entities that invest in real estate. The standard advice to real estate investors is to avoid using entities that are subject to taxation (such as C corporations in the U.S.) and employ entities that are not subject to taxation (such as limited liability companies, S corporations, and real estate investment trusts in the U.S.) in order to avoid double taxation of income. This paper shows that, in most situations, untaxed entities place a greater value of a given real estate property than does a taxed entity, which implies that taxed entities are at a distinct disadvantage at competing in the market for property. However, this conclusion is reversed if untaxed entities use a large amount of financial leverage compared to taxed entities and the borrowing rate for both is greater than the risk-free rate.

THE "DELTA" OF THE MARGRABE FORMULA

2014 ◽  
Vol 09 (03) ◽  
pp. 1450007 ◽  
Author(s):  
TUMELLANO SEBEHELA
Keyword(s):  
Real Estate ◽  
Mergers And Acquisitions ◽  
Laplace Transform ◽  
Real Estate Investment Trust ◽  
Real Estate Investment ◽  
Empirical Results ◽  
Delta Distribution ◽  
Investment Trust ◽  
The U.S ◽  
Exchange Option

This paper illustrates a derivative of a derivative (i.e. "delta") of an exchange option in the U.S. real estate investment trust (REIT) industry. So far, it seems that there is no study that derives a "delta" of an exchange option using Laplace transform. First, the "delta" illustrates that change in exchange option is "driven" by at least one variable which in turn influences the curvature of a "delta" distribution. The empirical results show that each "delta" is 0.03 on average. Lastly, it seems that REIT mergers and acquisitions (M&As) occurred both for strategic and financial reasons.

Problems of the US Economic Policy

2013 ◽  
pp. 129-143
Author(s):  
V. Klinov
Keyword(s):  
Economic Policy ◽  
Real Estate ◽  
Full Employment ◽  
Tax Rates ◽  
Equitable Distribution ◽  
Investment Rate ◽  
The Us ◽  
Budget Systems ◽  
Enterprise Activity ◽  
The U.S

How to provide for full employment and equitable distribution of incomes and wealth are the keenest issues of the U.S. society. The Democratic and the Republican Parties have elaborated opposing views on economic policy, though both parties are certain that the problems may be resolved through the reform of the federal tax and budget systems. Globalization demands to increase incentives for labor and enterprise activity and for savings to secure proper investment rate. Tax rates for labor and enterprise incomes are to be low, but tax rates for consumption, real estate and land should be progressive.

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