Ample literature builds on the notion that rising real estate values boost corporate secured borrowing ("collateral channel"). A new contract-level database allows us to observe the value, location, age, and end-use of firms' real estate holdings and all debts raised against those assets. Firms...

Flight to safety (FTS) affects the markets for risky assets such as stocks, corporate bonds, and commodities. Yet, little is known about the effects on commercial real estate. We show that REITs offer a partial hedge against FTS, with daily total returns being less sensitive to FTS than many...