David J. Lynn, Ph.D.

Prices for real estate, like any other economic good, are a function of supply and demand. Since each market has different underlying demand drivers and supply constraint characteristics, investment returns vary...

The industrial real estate sector was severely impacted during the 2008-09 recession, and has subsequently lagged in the early stages of the U.S. economic recovery...

In economic terms, inflation is defined as a rise in the general level of prices of goods and services in an economy over a period of time. When prices rise, each unit of currency buys fewer goods and services...

With property sales at a minimum and accurate capitalization rates difficult to ascertain, investors are increasingly looking at replacement cost as a method of establishing pricing parameters. The comparison of sales...

Structural constraints on the delivery of new supply in a given market reduce an owner’s competition for tenants, which may lead to higher occupancy, higher rent levels, stronger rent growth and higher capital values...

Many market observers have pointed out similarities between the current downturn in commercial real estate and the downturn in the early 1990s. Both were preceded by an extended period of relaxed underwriting...

The cap rate spread over the 10-year Treasury yield is normally positive, reflecting the additional risks inherent in real estate assets (Exhibit 1). The risk premium is generally considered necessary to compensate...