Thriving on risk in real estate
In The News
Professor David Geltner is developing new real estate indices to quantify uncertainties in commercial property markets.
Well-functioning markets thrive on risk and deciding how to value it, but to assess risk, markets rely on knowing what they don’t know. Uncertainty, or not knowing how much risk is present, is a market killer.
One tool markets use to help quantify uncertainty and turn unknowns into risks is the index, a method of measuring the value of a defined section of a market. Long a staple of stock markets — think of the Dow Jones Industrial Average or the S&P 500 — indices enable markets to better value risk and, therefore, to make better decisions.
