Measuring locational quality for commercial real estate

Gunther Maier and Karin Wagner

ERES from European Real Estate Society (ERES)

Abstract: The question what determines location quality of some real estate property is an essential one at the interface between real estate economics and regional science. Because of its heterogeneity, the question is particularly tricky in the context of commercial real estate. The Austrian Central Bank has begun to develop and implement price, rent and yield indices for commercial real estate in Austria. To make commercial prices and rents comparable in a hedonic sense, we capture locational quality effects.In this paper we will present the approach for measuring locational quality that we developed in the context of the indices. The applied tool relies on spatial information from Open Streetmaps. Indicators are developed therefrom, which are evaluated in the context of traded properties. In this paper we will present a first, preliminary evaluation based on a limited set of observations reported by financial institutions.

Keywords: commercial real estate; Location; Open Streetmaps; Valuation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-inv and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2024-228

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