TY - JOUR T1 - Micro Cap Assets versus Macro Cap Assets: <em>The Effect of Asset Size on Financial Performance in Real Estate</em> JF - The Journal of Private Equity SP - 19 LP - 30 DO - 10.3905/jpe.2018.22.1.019 VL - 22 IS - 1 AU - Oscar Vasco AU - Stephanie Feit AU - Jesus Bandres AU - Emily Francis AU - Nicolas Falkinoff Gips AU - Diyi “Claire” Chen Y1 - 2018/11/30 UR - https://pm-research.com/content/22/1/19.abstract N2 - This study explored the investment thesis that micro assets outperform macro assets. Micro assets include office and industrial real estate assets acquired at a price between $1 – $10 million. An asset acquired at a cost higher than $10 million is a macro asset. 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 were 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 study found, with a 99% confidence level, that the change in the value of micro assets is 15.97% higher than macro assets.TOPICS: Private equity, real estate, statistical methods, performance measurement ER -