A Comparative Analysis of the Major Determinants of Office
Rental Values in Europe

Giussani, Bruno; Hsia, Marshall; Tsolacos, Sotiris

doi:10.1108/14635789310031487

Cited by 64 publications

(61 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Inclusion of different economic activity measures in a single equation is prone to multicollinearity issues leading to insignificant coefficients in multiple regression analysis (see for example Giussani et al 1992;Gordon et al 1996;and de Wit and van Dijk 2003). 4 Supply side variables in Eq.…”

Section: Modelling Office Rentsmentioning

confidence: 99%

“…Widely used demand side variables are changes in GDP, service sector employment, lagged short-term interest rates and unemployment rates. One of the earliest works in this respect is Giussani et al (1992) Hendershott et al (2002a, b) elegantly combine the two continental strands of office literature in an ECM. In this paper we apply this methodology for a panel of international cities of different importance to the national economy and apply both national and local economic activity variables.…”

Section: Modelling Office Rentsmentioning

confidence: 99%

See 1 more Smart Citation

Local Office Rent Dynamics

Brounen

Jennen

2008

J Real Estate Finan Econ

View full text Add to dashboard Cite

This study applies rent adjustment models for ten major European office markets. We capture long-run equilibrium relationships of demand and supply variables and their short-term corrections in a two equation error correction model. We test whether the local nature of office markets makes a model based on national economics inaccurate if local and national markets do not move in tandem. For this we employ a unique dataset, which includes both disaggregated and national variables to model changes in real prime rents for a group of premier and second tier office market cities across Europe for the period 1990-2006. We explicitly compare results that are derived from models that include different levels of geographic aggregation. Results of the two stage error correction model indicate that international office rents adjust to short-run changes in office related economic activity, lagged rent changes, and to the deviation of rents from their long-run values. At the same time our results offer no proof that error correction mechanism models for office rents improve significantly by specifying economic growth figures beyond the national aggregated level for the cities included in our analysis.

show abstract

Section: Modelling Office Rentsmentioning

confidence: 99%

Section: Modelling Office Rentsmentioning

confidence: 99%

Local Office Rent Dynamics

Brounen

Jennen

2008

J Real Estate Finan Econ

View full text Add to dashboard Cite

show abstract

“…Employment and household income are important factors (see Lerbs 2011;Giussani et al, 1992;Baffoe-Bonnie, 1998). Smith and Tesarek (1991) examined the effect of a real estate activity decrease and found that the latter leads to a decreased employment growth rate.…”

Section: Employmentmentioning

confidence: 99%

On the macroeconomic determinants of the housing market in Greece: a VECM approach

Panagiotidis

Printzis

2016

Int Econ Econ Policy

View full text Add to dashboard Cite

“…Indeed, in a real estate context the rationale is particularly attractive. As a privately traded asset, real estate is more closely tied with underlying fundamentals than capital market assets such as equities, and a large literature has clearly illustrated the importance of economic fundamentals in the determination of both rental and capital values (for example Giussani et al 1993, D'Arcy et al 1997, Quan & Titman 1999, De Wit & Van Dijk 2003. One would therefore expect that the benefits of diversifying internationally would be enhanced in a real estate context.…”

mentioning

confidence: 99%

Concordance in Global Office Market Cycles

Stevenson

Akimov²,

Hutson³

et al. 2013

Regional Studies

View full text Add to dashboard Cite

A large proportion of international real estate investment is concentrated in the office markets of the world's largest cities. However, many of these global cities are also key financial services centres, highlighting the possibility of reduced economic diversification from an investor's perspective. This paper assesses the degree of synchronization in cycles across twenty of the world's largest office markets, finding evidence of significant concordance across a large number of markets. The results highlight the problems associated with commonalities in the underlying economic bases of the markets. The concentration of investment also raises the possibility of common flow of funds effects that may further reduce diversification opportunities.

show abstract

A Comparative Analysis of the Major Determinants of Office Rental Values in Europe

Abstract: The European section is intended to provide an open forum for the presentation of comparative European property research.

Cited by 64 publications

References 9 publications

Local Office Rent Dynamics

Local Office Rent Dynamics

On the macroeconomic determinants of the housing market in Greece: a VECM approach

Concordance in Global Office Market Cycles

Contact Info

Product

Resources

About