Title

Is E-Commerce an Investment Risk Priced by Retail Real Estate Investors? an Investigation

Published In

Journal of Property Research

Document Type

Citation

Publication Date

11-3-2021

Abstract

Over the last 20 years, online shopping has evolved into a major threat to the physical retail store. We investigate whether retail real estate investors price e-commerce as an investment risk. In particular, we analyse whether e-commerce sales have informative value for retail real estate returns. Focusing on institutional-grade shopping centres over the period of 2000 to 2018, we find that e-commerce sales predict total returns in the next quarter. This effect is driven by capital returns, which suggests that e-commerce is indeed priced as an investment risk. While consistent across mall types, this effect is stronger for regional and super-regional malls than neighbourhood and community shopping centres. Explanations for this difference include the types of retail tenants in these different mall categories and the varying impact of e-commerce on their business.

Rights

Copyright © 2021 Informa UK Limited

DOI

10.1080/09599916.2021.1996447

Persistent Identifier

https://archives.pdx.edu/ds/psu/36747

Share

COinS