Spatial Concentration of Institutional Property Ownership: New Wave Atomistic or Traditional Urban Clustering

NCREIF investors acquire property in counties that meet socioeconomic filtering criteria. In contrast to atomistic predictions, these investors acquire their apartment buildings, offices, retail facilities, and warehouses in density clusters. These clusters follow a model of a negative exponential demand curve, a model that previously explained the technologically caused density gradient of urban areas. Institutional investors signal their belief that clustering of properties is a value dimension.