Commercial real estate represents a significant fraction of total U.S. wealth, but its risk and returns at the property level are largely unknown. This paper utilizes detailed cash flow information of 2,845 commercial properties acquired for about $89 billion by institutional investors of NCREIF...

The renovation and expansion of existing commercial properties constitute important investments into the economic infrastructure. Such investments can facilitate economic growth if made at appropriate times and scales, but can also lead to a waste of economic resources and exacerbate market...