December 1997, Vol 22, No 3

Abstract: This manuscript presents the results of analytical work intended to empirically identify differences in transaction-based capitalization rates across office, warehouse, retail, and apartment properties during the period 1986-1996. The analysis indicates that capitalization rates differ across these property types along three dimensions: in the magnitude of their fixed, time-invariant component; in the pattern of their time trends; and in the persistence of these time trends. Potential explanations on the sources of such differences are advanced.