Studiesontherelationshipbetweencorporaterealestate(CRE)andeconomiccyclesareverythin,especiallyfromdevelopingcountries,suchasSouthAfrica.More,inpractice,mostfirmshardlydedicateenoughresourcestoCREdivisions.Thisleadstothatmanagementnotfullymaximisesthewealthofshareholders.Thisstudyusesmulti-linearregressiontotesthowGDP,interestrate,andtotalcorporatecostsreacttochangesinCRE.ThesampleismadeupofbluechipfirmslistedontheJohannesburgStockExchange(JSE).Theresultsrevealmixedbagsolutions-forcertainfirms;GDP,interestrate,andcorporatecostsarestatisticallysignificantandviceversa.More,thisanalysiscanbereplicatedtoothersimilarindustriesandindicesaroundtheworld.
