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IPF commissioned study into hurdle rates suggests some over-reliance on 'gut feel'

Whilst hurdle rates are almost always used in commercial property investment decisions, it is common for investment managers to override formal analysis and alter model assumptions and rely on "gut feel", according to a report commissioned by the Investment Property Forum (IPF).
CoStar News
June 21, 2017 | 1:21 P.M.

A hurdle rate is the minimum rate that a company expects to earn when investing in a project. For this reason the hurdle rate is also referred to as the company's required rate of return or target rate.

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