“…Finally, this paper is related to the literature that investigates the impact of real estate on real margins such as financial contracts (Bemelech et al (2005)), capital expenditure (Gan (2007), Chaney et al (2012)), financial margins such as leverage (e.g. Cvijanovic (2014), Lin (2014, Mian and Sufi (2011)), capital structure (Rampini and Viswanthan (2013)), cash holdings (Chen, Harford, and Lin (2013)), entrepreneurship (Adelino, Schoar, and Severino (2014)), innovation outcome (Cao et al (2014)), and others. This paper contributes to this line of studies by examining a firm's resource allocation as a response to shocks from the commercial real estate market through the lens of three innovation channels.…”