Investor Surveys and the Discount Rate

  • October 20, 1992
  • • Written by: Edmund Carroll 

Fall/Winter 1992, Vol 17, No 2

Abstract:The use of an investor survey as a benchmark for deriving the discount rate for real estate analysis is a generally accepted technique, based on the assumption that information gathered in the survey is reliable and consistent. This article focuses on the reliability of the investor survey, the importance of various economic vaiables and the relationship between economic variables and the discount rate through intuitive analysis and statistical testing.