This study investigates the capitalization of climate shocks in commercial real estate owned and operated by sophisticated investors. We focus on Hurricanes Harvey and Sandy to quantify the price impacts of climate shocks on commercial buildings in the U.S. We find clear evidence of a decline in...

Constructing a novel database on the real estate holdings of public firms, we show that distressed firms sell their real estate assets at a discount relative to healthy firms. We find that distress discount in real estate assets is less pronounced for sellers with less liquidity-constrained...

This paper analyzes how the dynamics of house prices are affected by the option to rebuild or enlarge existing dwellings. The curvature of option value and zoning limits provide identification of changes in option value over the cycle. For West Berlin homes with high development potential, our...