Researcher studies the future of vertically integrated firms. (foreign investment; Lawrence S. Bacow, research director, Center for Real Estate Development, Massachusetts Institute of Technology) (Business and Project News)

Building Design & Construction, February, 1991

Researcher studies the future of vertically integrated firms Foreign investment in U.S. real estate has more than doubled since 1982. While passive foreign investment has been regarded by most observers as a not unhealthy trend, it raises the question of whether foreign firms -- many of which tend to have highly integrated activities in their domestic markets -- will attempt a similar diversification in the U.S. Many U.S. real estate and development firms have themselves recently begun to branch into various new services as a means of contending with the oversupply of space.

Despite these current trends, the size and structure of the U.S. real estate industry will preclude large-scale vertical integration of either foreign or domestic firms, according to...

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