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The Information Precision of CBD Office Vacancy Rates

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Abstract

Consistent with the rational expectations information model (REIM), the difference among reported area CBD office vacancy rates is proportional to the level of vacancy, inversely proportional to the size of the inventory, and significantly higher when both a national vendor and a local agent make simultaneous reports. Underlying volatility in the market and the cost and difficulty of acquiring information are the principal causes of the information variance. The difficulties and ambiguities in obtaining information are reviewed and the Diamond REIM model is tested using encountered published vacancy rates for central business districts for the period 1985-1989.

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  • Leon G. Shilton & Janet K. Tandy, 1993. "The Information Precision of CBD Office Vacancy Rates," Journal of Real Estate Research, American Real Estate Society, vol. 8(3), pages 421-444.
    • Handle: RePEc:jre:issued:v:8:n:3:1993:p:421-444
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    Cited by:

    1. Maier, Gunther & Herath, Shanaka, 2009. "Real Estate Market Efficiency. A Survey of Literature," SRE-Discussion Papers 2009/07, WU Vienna University of Economics and Business.
    2. Leon Shilton, 1998. "Patterns of Office Employment Cycles," Journal of Real Estate Research, American Real Estate Society, vol. 15(3), pages 339-354.

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    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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