An Investigation of Hurdle Rates in the Real Estate Investment Process (May 2017) Full Report




Full Report

This joint research by the Universities of Cambridge and Aberdeen investigated the extent to which and how hurdle rates are used in investment decisions. The study identified a range of approaches, reflecting diversity of investor type, asset and market focus, investment horizon and objectives. Findings also included that IRRs are the dominant decision metric and investment decision-making processes vary greatly in complexity and are typically adjusted to a specific project or investment, although some investors take an overall hurdle rate approach for all investments.