Real Estate Asset Management Companies' Economies of Scale: Is It a Dream or Reality? The Italian Case

Abstract

The research focuses on a sample of 26 Italian real estate asset management companies (Società di Gestione del Risparmio "SGR")-whose asset management is totally linked to real estate funds-that considers a period of six years (2013-2018). Using some variables extrapolated from the internal accountability of each SGR, the analysis investigates possible relationships between them to verify the presence or absence of economies of scale of Italian real estate management companies by multivariate regressions. The results show that there is no single model for profit maximization and cost minimization, but all depends on the business model that each SGR decides to adopt.