This study explores the impact of investment characteristics, mainly investment location relative to the firm's primary market, on financing choices by real estate investment trusts (REITs). Using a large sample of commercial property acquisitions, we show that REITs are 4-8% less likely to use...

We explore the role of location in the financing of commercial real estate acquisitions by real estate investment trusts (REITs). More specifically, we examine how the location of a property relative to a REIT's main business location affects the financing of that property. We find that REITs...