research Market Intelligence /marketintelligence/en/news-insights/research/just-the-build-fax-property-intelligence-from-building-permit-data content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Just the (Build)Fax: Property Intelligence from Building Permit Data

Estimating Probability of Default in Project Finance Portfolios

Estimating Probability of Default in Project Finance Portfolios

Convergence of the Cutting Edge Q&A with the Experts

Diversity and Inclusion in IT – Plenty of Positive Intent, but a Long Way to Go...


Just the (Build)Fax: Property Intelligence from Building Permit Data

Highlights

Publicly-traded REITs that have continued building permit-requiring activities during the 2020 economic lockdown have outperformed their peers.

Using the BuildFax data on the S&P Global Marketplace, a one standard deviation increase in a derived permit ratio is associated with 427 bps of excess return over the same period.

As property owners curtailed construction and renovation projects in the wake of the economic lockdown, building permit data has provided valuable transparency for investors of Real Estate Investment Trusts (REITs).

Download The Full Report
Click Here

Investors have struggled to price the uncertainties facing commercial Real Estate owners as tenants’ businesses continue to be impacted by the economic lockdown following the COVID-19 global pandemic. Building permit data has provided valuable transparency for investors of Real Estate Investment Trusts (REITs) during this time. Publicly-traded REITs that have continued permit-requiring activities have outperformed their peers during and following the economic lockdown. A one standard deviation increase in a derived permit ratio, compared to the industry average, is associated with 427 bps of excess return over the same period.

Figure 1. REIT Returns vs. Year-on-Year Change in Permits. A Fama-French 5 factor framework was used to generate excess stock level returns for the universe of U.S.-based REITs within the SNL REIT dataset. These returns were plotted against the year-on-year change in the permit ratio as defined in equation 1.

During the period ranging from February 21 to March 23, the S&P United States REIT Total Return Index fell 43.9% as market participants attempted to price the impact of the COVID-19 pandemic and consequential economic shutdown on real estate owners. The ability of businesses that rely heavily on storefront foot traffic, such as hotels and restaurants, to continue paying rent to property owners was called into question after several state governments legislated a halt on so-called “non-essential” activities.

Explore the data used in this research on the S&P Global Marketplace
Learn more

Just the (Build)Fax: Property Intelligence from Building Permit Data

Click Here