The Workings of the London Office Market

THE CHARLES A. DICE CENTER FOR RESEARCH IN FINANCIAL ECONOMICS

Posted: 9 Feb 1998

See all articles by Patric H. Hendershott

Patric H. Hendershott

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

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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 central London office market over the 1976-96 period. The model is shown to dynamically track the market well and the severe 1985-96 cycle is shown to be related to the cycle in employment growth and the surge in real interest rates. The latter affects both construction and rental adjustment.

JEL Classification: R12

Suggested Citation

Hendershott, Patric H., The Workings of the London Office Market. THE CHARLES A. DICE CENTER FOR RESEARCH IN FINANCIAL ECONOMICS, Available at SSRN: https://ssrn.com/abstract=58116

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

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