Rental adjustment in European office markets: global or local effect?

Alain Coen, Benoit Lefebvre, Richard Malle and Arnaud Simon

ERES from European Real Estate Society (ERES)

Abstract: The purpose of this study is to deeply investigate the rental dynamics of the European office market during a long period (2002-2017). This paper analyses the global and local dynamics of the 26 largest European office markets. First we estimate a dynamic panel vector autoregressive (PVAR) modelling. Then, we estimate the same equation for each market individually. Our modelling at two levels highlights a significant heterogeneity across European office markets. Finally, we revisit the natural vacancy rate theory. We show that European office markets currently exhibit vacancy rates below their natural rates suggesting relevant opportunities for real estate portfolio investors.

Keywords: European integration; Natural vacancy rate; Office Market; Panel VAR; Rental dynamics (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2019-01-01
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2019_61

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