The Workings of the London Office Market

Posted: 26 Aug 1999

See all articles by Patric H. Hendershott

Patric H. Hendershott

University of Aberdeen - Centre for Property Research; National Bureau of Economic Research (NBER)

Colin Lizieri

University of Cambridge - Department of Land Economy

George Matysiak

City University London - Faculty of Finance

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Abstract

This paper presents estimates of an equilibrium-based dynamic adjustment model of the office market, using supply and demand relationships to link construction, absorption, vacancies and rents to employment growth and real interest rates. The model is estimated using data from the City of London office market over 1977-1996. The model tracks the market dynamically, and the severe 1985-1996 cycle is shown to be related to the cycle in employment growth and the movement of real interest rates. The latter directly affects both construction and real rent levels.

JEL Classification: R33

Suggested Citation

Hendershott, Patric H. and Lizieri, Colin M. and Matysiak, George A., The Workings of the London Office Market. Real Estate Economics, Volume 27, Number 2, Summer 1999, Cass Business School Research Paper, Available at SSRN: https://ssrn.com/abstract=171850

Patric H. Hendershott (Contact Author)

University of Aberdeen - Centre for Property Research ( email )

Aberdeen AB24 2UF
Scotland

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Colin M. Lizieri

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

HOME PAGE: http://www.landecon.cam.ac.uk/staff/profiles/clizieri.htm

George A. Matysiak

City University London - Faculty of Finance ( email )

London, EC2Y 8HB
Great Britain
+44 171 477 8218 (Phone)
+44 171 477 8573 (Fax)

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