upwards view of tall modern office building in the city with lots of windows

This study explored the investment thesis that micro assets outperform macro assets. Micro assets are defined as office and industrial real estate assets acquired at a price between $1 – $10 Million. Assets acquired at a price greater than $10 Million are defined as macro assets. The study used a data sample of 1,025 office and industrial real estate asset transactions collected from the databases CompStak and Co-Star.  Data was collected from 1993 to 2016, representing approximately 38 cities across different market tiers.

The results obtained from the analysis, with a 90% confidence level, showed that micro assets yielded an 8.76% higher IRR than macro assets.  Similarly, the analysis found, with a 99% confidence level, that the change in value of micro assets is 15.97% higher than macro assets.

Note: Investment sales have comprised 38% of the total BARBERMURPHY volume in 2017 and 2018.


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