Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Business
Governmental Restrictions And Real Estate Investor Risk Perception, Carina Kaiser, Julia Freybote, Wolfgang Schäfers
Governmental Restrictions And Real Estate Investor Risk Perception, Carina Kaiser, Julia Freybote, Wolfgang Schäfers
Business Faculty Publications and Presentations
We investigate the impact of governmental restrictions on the short-term risk perception, as proxied by the going-in cap rate, of investors in regional and neighborhood shopping centers. We use the COVID-19 pandemic as a natural experiment and proxy for the length and severity of COVID-19 restrictions with the political affiliation of state governors. Using a sample of 40 metropolitan statistical areas (MSAs) across 27 states over the period of 2018 to 2021, we find that for states with Republican governors, which proxy for shorter and fewer COVID-19 restrictions, investors in regional malls required a lower going-in cap rate in the …