Office Rent Determinants: a Hedonic Panel Analysis

Franz Fuerst

Real Estate & Planning Working Papers from Henley Business School, University of Reading

Abstract: It has been frequently observed that office markets are subject to particularly high fluctuations in rents and vacancy levels, thus exposing real estate investors to considerable risk regarding expected future income streams. This paper analyzes the determinants of office rents and their variability over time and across sub-markets to gain insight into the rent price formation and its stability across space and over time. No support is found for the single-market hypothesis which states that arbitrage opportunities effectively align real estate pricing schemes in various parts of city. Instead, the results suggest that the importance of hedonic pricing factors varies both over time and across submarkets.

Keywords: Real estate; office market; hedonic analysis; panel analysis; market fragmentation; efficient markets; spatiotemporal models (search for similar items in EconPapers)
JEL-codes: C33 C51 G14 R12 R33 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Office Rent Determinants: A Hedonic Panel Analysis (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:rdg:repxwp:rep-wp2008-12

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