EconPapers    
Economics at your fingertips  
 

Adjustment in Property Space Markets: Estimates from the Stockholm Office Market

Peter Englund, Åke Gunnelin, Patric Hendershott and Bo Söderberg

ERES from European Real Estate Society (ERES)

Abstract: "Rent setting behavior of landlords relates to rental rates on new leases, while tenant demand for space depends on the average rental rate on existing space. Thus models of the space market need to identify the roles of these two rates. A market or new lease rent series is constructed for the Stockholm office rental market for the time-period 1977ñ2002 by applying a standard hedonic approach to a data-set of some 2,400 individual leases. Given the market rent series and the lease length distribution, we estimate a time series on the average rent on existing leases. We explain the adjustment of both real market rent and vacancies and show the role played by ""hidden vacancies"" in the stock (the difference between space demand at the new and existing lease rates divided by the existing stock) in this process. We further calculate the natural vacancy rate assuming a trending equilibrium in the Stockholm office market. Simulations illustrate the importance of the lease length to the adjustment process. "

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2005-01-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2005-166 (text/html)

Related works:
Working Paper: Adjustment in Property Space Markets: Estimates from the Stockholm Office Market (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2005_166

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().

 
Page updated 2025-04-03
Handle: RePEc:arz:wpaper:eres2005_166