Clustering Methods for Real Estate Portfolios

William Goetzmann and Susan Wachter

Yale School of Management Working Papers from Yale School of Management

Abstract: A clustering algorithm is applied to effective rents for twenty-one U.S. office markets, and to twenty-two metropolitan markets using vacancy data. It provides support for the conjecture that there exists a few major families of cities: including an oil and gas group and an industrial Northeast group. Unlike other clustering studies, we find strong evidence of bicoastal city associations among cities such as Boston and Los Angeles. We present a bootstrapping methodology for investigating the robustness of the clustering algorithm, and develop a means for testing the significance of city associations. While the analysis is limited to aggregate rent and vacancy data, the results provide a guideline for the further application of cluster analysis to other types of real estate and economic information.

JEL-codes: G11 (search for similar items in EconPapers)
Date: 1998-07-03
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=9013 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 410 Gone (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=9013 [301 Moved Permanently]--> https://papers.ssrn.com/sol3/papers.cfm?abstract_id=9013)

Related works:
Journal Article: Clustering Methods for Real Estate Portfolios (1995)
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:ysm:somwrk:ysm59

Access Statistics for this paper

More papers in Yale School of Management Working Papers from Yale School of Management Contact information at EDIRC.
Bibliographic data for series maintained by ().