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Ownership, Occupation and Risk: A View of the City of London Office Market

Author

Listed:
  • Colin Lizieri

    (Department of Land Management and Development, University of Reading, Whiteknights, Reading, RG66AW, UK, c.m.lizieri@rdg.ac.uk)

  • Andrew Baum

    (Department of Land Management and Development, University of Reading, Whiteknights, Reading, RG66AW, UK, a.e.baum@rdg.ac.uk)

  • Peter Scott

    (Business History Unit, Portsmouth Business School, University of Portsmouth, Locksway Road, Milton, Southsea, PO4 8JF, UK, scottp@pbs.port.ac.uk)

Abstract

Office returns in the City of London are more volatile than in other UK markets. This volatility may reflect fluctuations in capital flows associated with changing patterns of ownership and the growing linkage between real estate and financial markets in the City. Using current and historical data, patterns of ownership in the City are investigated. They reveal that overseas ownership has grown markedly since 1985, that owners are predominantly FIRE-sector firms and that there are strong links between ownership and occupation. This raises concerns about future volatility and systemic risk in a market strongly influenced by the cyclical behaviour and shocks of the international financial system.

Suggested Citation

  • Colin Lizieri & Andrew Baum & Peter Scott, 2000. "Ownership, Occupation and Risk: A View of the City of London Office Market," Urban Studies, Urban Studies Journal Limited, vol. 37(7), pages 1109-1129, June.
    • Handle: RePEc:sae:urbstu:v:37:y:2000:i:7:p:1109-1129
    DOI: 10.1080/00420980020080041
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    References listed on IDEAS

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    Cited by:

    1. Das, Prashant & Füss, Roland & Hanle, Benjamin & Russ, Isabel Nina, 2020. "The cross-over effect of irrational sentiments in housing, commercial property, and stock markets," Journal of Banking & Finance, Elsevier, vol. 114(C).
    2. Colin Lizieri, 2008. "International Financial Centres, Office Market Rents And Volatility," ERES eres2008_197, European Real Estate Society (ERES).
    3. Marton Lotz & Daniel Ruf & Johannes Strobel, 2023. "Uncertainty premia in REIT returns," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(2), pages 372-407, March.
    4. Mohammad Ismail & Abukar Warsame & Mats Wilhelmsson, 2022. "Who Owns the City, and Why Should We Care?," Land, MDPI, vol. 11(4), pages 1-16, March.
    5. Roland Füss & Daniel Ruf, 2018. "Office Market Interconnectedness and Systemic Risk Exposure," Working Papers on Finance 1830, University of St. Gallen, School of Finance.
    6. Füss, Roland & Ruf, Daniel, 2021. "Bank systemic risk exposure and office market interconnectedness," Journal of Banking & Finance, Elsevier, vol. 133(C).
    7. Igal Charney, 2003. "Unpacking and Repackaging Regional Diversity: Office-Building Trajectories in Canada," Environment and Planning A, , vol. 35(2), pages 231-248, February.
    8. Neil Crosby & Virginia Gibson & Sandi Murdoch, 2003. "UK Commercial Property Lease Structures: Landlord and Tenant Mismatch," Urban Studies, Urban Studies Journal Limited, vol. 40(8), pages 1487-1516, July.
    9. Frances Brill, 2022. "Governing investors and developers: Analysing the role of risk allocation in urban development," Urban Studies, Urban Studies Journal Limited, vol. 59(7), pages 1499-1517, May.
    10. Andrea Chegut & Piet Eichholtz & Paulo Rodrigues, 2013. "The London Commercial Property Price Index," The Journal of Real Estate Finance and Economics, Springer, vol. 47(4), pages 588-616, November.
    11. Steven Laposa & Colin Lizieri, 2005. "Real Estate Capital Flows and Transitional Economies," Real Estate & Planning Working Papers rep-wp2005-12, Henley Business School, University of Reading.
    12. Simon Stevenson & James Young, "undated". "Capital Market Expectations and the London Office Market," Real Estate & Planning Working Papers rep-wp2011-09, Henley Business School, University of Reading.
    13. Colin Lizieri, 2011. "Global Cities, Office Markets and Capital Flows," Chapters, in: Ben Derudder & Michael Hoyler & Peter J. Taylor & Frank Witlox (ed.), International Handbook of Globalization and World Cities, chapter 15, Edward Elgar Publishing.
    14. Musil Robert & Reiner Christian, 2019. "Synchronität der Büromarktzyklen? Dynamiken europäischer Metropolen im Kontext der Finanz- und Wirtschaftskrise," ZFW – Advances in Economic Geography, De Gruyter, vol. 63(1), pages 23-46, March.
    15. DÖRRY Sabine, 2011. "Financialised office markets and the cities. The example of Frankfurt am Main," LISER Working Paper Series 2011-51, Luxembourg Institute of Socio-Economic Research (LISER).
    16. Anupam Nanda & Jia-Huey Yeh, 2016. "International Transmission Mechanisms and Contagion in Housing Markets," The World Economy, Wiley Blackwell, vol. 39(7), pages 1005-1024, July.
    17. Heeg Susanne, 2009. "Wie Phönix aus der Asche?: Immobilienwirtschaftliche Forschung in der Geographie," ZFW – Advances in Economic Geography, De Gruyter, vol. 53(1-2), pages 129-137, October.

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    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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