Q&A with William Hardin, Florida International University
William Hardin is professor of finance and real estate and director of real estate programs at Florida International University, and a member of the board of directors of the American Real Estate Society. He has authored or co-authored some 40 papers on varied topics in commercial real estate investment, including REIT governance and financial structure.
Portfolio: In one of your most recent papers you found that REIT-owned apartment properties generated higher effective rents than otherwise similar properties owned by non-REITs, at least in the Atlanta area. What accounts for the superior operating performance by REITs?
Hardin: There are several potential advantages including local market knowledge gained from ownership of multiple properties, longer-term property and portfolio strategies and the ability to attract and maintain competent management. Most REITs have direct, real-time property knowledge that they generate through their direct participation in the space market. REITs and other larger operators get this information more quickly than most other market participants.
Read: “Q&A with William Hardin, Florida International University,“ an article from Real Estate Portfolio Magazine.