Skip to main content
Article thumbnail
Location of Repository

Flight to quality? An investigation of the attributes of sold properties in hot and cold markets

By Franz Fuerst, Patrick McAllister and P. Sivitanides


This paper uses sales transaction data in order to examine whether flight from risk phenomena took place in the US office property investment market during the financial crisis of 2007-2009. The effect of the crisis on the pricing of property quality attributes, mainly summarized by the class category of each building, is investigated. In addition, the paper examines how turnover levels were affected by the market downturn and whether there were significant variations between different real estate quality types. The results of the hedonic regression models suggest that the price spread between Class, A, B and C grew significantly during the downturn. We also find that property attributes such as size, height and age are priced significantly different in ‘hot’ and ‘cold’ markets

Publisher: University of Reading
Year: 2011
OAI identifier:

Suggested articles


  1. (2004). An Analysis of the Determinants of Transaction Frequency of Institutional Commercial Real Estate Investment Property.
  2. (2008). Avoiding taxes at any costs: The economics of tax deferred real estate exchanges.
  3. (1998). Comment on Vincent Warther, “Has the rise of mutual funds increased market instability?” Brooking-Wharton Papers.
  4. (2010). Comovements of Different Asset Classes During Market Stress. Pacific Economic Review
  5. (2009). Determinants of Intra-Euro Area Government Bond Spreads During the Financial Crisis. European Economic Papers 388.
  6. (2004). Flight to quality, flight to liquidity, and the pricing of risk.
  7. (1989). The Motivation for Institutional Real Estate Sales and Implications for Asset Class Returns,
  8. (2007). The Probability of Sale for Residential Real Estate.
  9. (2003). Timing and Holding Periods of Institutional Real Estate,
  10. (1998). Who moves the market? Working Paper,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.