Not surprisingly, we find that location does matter when it comes to performance as measured by either property-level rent or revenue growth - consistent with prior literature (Capozza and Helseley, 1990). With quarterly data available from 1999, we now have seventeen years of time series covering two business cycles (expansion from 1999 to 2000 contraction from 2000-2001 expansion from 2002 to 2008 the 18 month recession from 2008-2009, and the recovery period from mid-2009 to the present). First, we update the results of Taylor, Rubin and Lynford (2000) using panel data from specific commercial properties obtained from Reis, a provider of commercial real estate data that has been tracking building fundamentals like rents and occupancies since 1980. In this article we investigate just how much location-specific factors influence commercial real estate performance, if at all. However, in an age where capital flows across national borders relatively easily when physical locations seem “optional” for a mobile workforce connected by the internet - does location still matter? And by how much? This statement will seem painfully obvious to industry practitioners, who may argue that (aside from timing and luck) location is the only thing that matters.

Location matters for how commercial real estate will perform over time.

The Impact of Submarket Trends on Property Performance I.

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