What is denominator effect?
When public-market declines shrink the value of an investor’s overall portfolio, real estate becomes an outsized share of the total, prompting investors to seek liquidity from private and open-end real estate funds.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.