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Purpose As smart technologies become an integral part of real estate in smart cities, the purpose of this paper is to explore the impact of ubiquitous computing on space users in smart real estate. Design/methodology/approach The analysis builds on two fields of knowledge rarely referenced in real estate studies: computer sciences and social sciences. The paper starts by analysing the idiosyncrasies of a new type of space user in smart real estate, known as the Cyber-dasein in reference to Heidegger’s phenomenology. The Cyber-dasein serves as an archetypical space user in smart environments. Findings The paper introduces digital-time as a new realm of real estate, and discusses the use of “experienced utility” in hedonic pricing models of smart real estate. It concludes by advocating a multidisciplinary collaborative approach for future research on real estate in smart environments. Practical implications There is a need for the real estate sector to decide on a metric for the new digital dimension of real estate owing to the implementation of smart technologies in the built environment. Originality/value This is the first research paper on this important topic. It is totally original and new.

PurposeThe purpose of this paper is to analyze and revisit the risk and performance of publicly traded real estate companies from 14 countries over the period 2000–2015, marked by the unprecedented Global Financial Crisis, in presence of errors-in-variables (EIV) and illiquidity (measured by serial correlation, following Getmanskyet al.(2004)).Design/methodology/approachThe authors extend the seminal work of Bondet al.(2003), and shed a new light on the relative performance of listed real estate before and after the GFC. First, the authors suggest the use of various asset pricing models (APM) including the Fama and French (2015) five-factor APM with global and country-level factors. Second, the authors implement unbiased estimators to correct for the econometric bias induced by EIV in APM. Third, the authors deal with the impact of illiquidity (measured by serial correlation) on the risk properties of international securitized real estate returns.FindingsThe findings show that post-GFC, a radical change in international listed real estate risk factors has resulted in more homogeneous markets internationally and less diversification opportunities for international investors.Practical implicationsThe authors suggest the use of robust linear APM (including the Fama and French (2015) five-factor APM) to analyze the risk and performance of publicly traded real estate companies from 14 countries over the period 2000–2015.Originality/valueThe authors analyze and revisit the risk and performance of publicly traded real estate companies from 14 countries over the period 2000–2015, marked by the unprecedented Global Financial Crisis.

PurposeThe purpose of this paper is to fill a gap in the real estate academic literature by defining the essence of real estate in smart urban environments. Space has traditionally been a silent component of real estate. Smart technologies powered by Ubi-comp are turning space into an active part of real estate, which represents a paradigm shift for commercial real estate. This shift requires new concepts and tools to analyse and model real estate in smart cities.Design/methodology/approachThe paper defines the notions of smart space and smart real estate. Several concepts and tools are formulated, starting with a model of space users in smart cities, called the Cyber-Dasein inspired by Heidegger’s existential phenomenology of space.FindingsThe paper then analyses smart space’s attributes and proposes several metrics for commercial real estate in smart environments. After introducing three regression models for constructing a price index of smart real estate, the paper concludes by advocating that commercial real estate take an active role in the current debate about smart cities.Research limitations/implicationsThe paper does not provide any empirical analysis of smart real estate.Practical implicationsSmart environments offer real estate a unique opportunity to set up methodologies, concepts and tools for new properties in new cities. Now is the time to think carefully about the impact smart technologies will have on commercial properties before other stakeholders (in particular smart cities vendors and multinational technology giants) have fully modelled smart space and its nexus with smart real estate.Originality/valueThis paper is the first paper to provide a conceptual framework for the analysis of commercial real estate in smart cities.

Purpose – The paper aims to conduct an empirical study of three models of property derivatives: index-based derivatives, factor hedges, and combinative hedges based on index and factors. The objective is to test whether the latter two models introduced by Lecomte dominate the index-based model used for existing property derivatives such as EUREX futures contracts. Design/methodology/approach – Based on investment property database (IPD) historical database covering 224 individual office properties from 1981 to 2007, the study assesses ex ante hedging effectiveness of the three models. Nine simulations are run under different hypotheses involving individual buildings and portfolios. The 17 factors included in the study cover both macro-factors (e.g. macroeconomic indicators) and micro-factors linked to the properties (e.g. age). Findings – Atomization and periodic rebalancing of property derivatives' underlying make it possible to substantially increase hedging effectiveness for a large majority of buildings in the sample. However, combinative hedges are overall superior to factor hedges owing to the overriding role played by IPD indices in capturing risk. Research limitations/implications – Due to confidentiality requirements inherent to the use of property level data, the study downplays the role of micro-factors on real estate risk at the property level. Practical implications – The paper introduces a typology of optimal hedges aimed at individual property owners and portfolio holders in the City office property market. Originality/value – This is the first time a comprehensive analysis of different models of property derivatives is conducted. The value of the paper stems from the use of property level data.