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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Portfolio optimization analysis of REITs in commercial real estate

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DOI: 10.25236/ssehr.2023.060

Author(s)

Chen Shuzhen

Corresponding Author

Chen Shuzhen

Abstract

With the rapid development of economy in China, the commercial real estate increasingly become the focus of many investors. It is more and more popular that REITs is applied in commercial real estate. How to promote REITs benefits in commercial real estate investment? We will discuss it in this paper. This paper is established on Markowitz portfolio, REITs model optimization model. Taking the commercial real estate sales price index in jan 2013-2018 April, we carry out an empirical research about the commercial real estate for REITs in portfolio optimization. Under the B coefficient of optimization model for measure Markowitz, we sought for maximum profit (or minimal risk) of commercial real estate projects investment portfolio.

Keywords

REITs; Commercial Real Estate; Portfolio; Markowitz model