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The Forces Not Changing Real Estate Forever

Working paper #424
Albert B. Ratner

Five years later, it is clear that the thesis of Peter Linneman’s article, “The Forces Changing Real Estate Forever,” has not held true. The advantages of consolidation do not apply to real estate as they do for the petroleum, aerospace or tire manufacture industries. Linneman rais-es five attributes of consolidation: leadership; long-term capital; low overhead; enhanced rev-enues; and successful risk management. These attributes have not benefited real estate, an industry that has too many players, is much too dynamic, and needs constant creativity to allow meaningful consolidation.

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