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Concordance in Global Office Market Cycles

Author

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  • Simon Stevenson
  • Alexey Akimov
  • Elaine Hutson
  • Alexandra Krystalogianni

Abstract

Stevenson S., Akimov A., Hutson E. and Krystalogianni A. Concordance in global office market cycles, Regional Studies . 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.

Suggested Citation

  • Simon Stevenson & Alexey Akimov & Elaine Hutson & Alexandra Krystalogianni, 2014. "Concordance in Global Office Market Cycles," Regional Studies, Taylor & Francis Journals, vol. 48(3), pages 456-470, March.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:3:p:456-470
    DOI: 10.1080/00343404.2013.799763
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    References listed on IDEAS

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    1. Ravi Dhar & William Goetzmann, 2005. "Institutional Perspectives on Real Estate Investing: The Role of Risk and Uncertainty," Yale School of Management Working Papers ysm457, Yale School of Management, revised 01 Jul 2005.
    2. Colin Lizieri, 2009. "Real Estate Investment in Global Financial Centers: Risk, Return and Contagion," Real Estate & Planning Working Papers rep-wp2009-11, Henley Business School, University of Reading.
    3. 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.
    4. Bradford Case & William Goetzmann & K. Rouwenhorst, 1999. "Global Real Estate Markets: Cycles And Fundamentals," Yale School of Management Working Papers ysm20, Yale School of Management, revised 01 Jan 2001.
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    Cited by:

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    2. Antoine Guironnet & Katia Attuyer & Ludovic Halbert, 2016. "Building cities on financial assets: The financialisation of property markets and its implications for city governments in the Paris city-region," Urban Studies, Urban Studies Journal Limited, vol. 53(7), pages 1442-1464, May.
    3. Natacha Aveline-Dubach, 2020. "The financialization of real estate in megacities and its variegated trajectories in East Asia [La financiarisation de l'immobilier dans les mégapoles d'Asie orientale et leurs trajectoires différe," Post-Print halshs-02517518, HAL.
    4. Füss, Roland & Ruf, Daniel, 2021. "Bank systemic risk exposure and office market interconnectedness," Journal of Banking & Finance, Elsevier, vol. 133(C).
    5. Alessandra Canepa & Emilio Zanetti Chini & Huthaifa Alqaralleh, 2022. "Global Cities and Local Challenges: Booms and Busts in the London Real Estate Market," The Journal of Real Estate Finance and Economics, Springer, vol. 64(1), pages 1-29, January.
    6. Chakravarty, Dwarka & Goerzen, Anthony & Musteen, Martina & Ahsan, Mujtaba, 2021. "Global cities: A multi-disciplinary review and research agenda," Journal of World Business, Elsevier, vol. 56(3).
    7. 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.
    8. Yuqing Hu & Piyush Tiwari, 2021. "Examining the Macroeconomic Determinants of Property Cycles in Australia," International Real Estate Review, Global Social Science Institute, vol. 24(2), pages 293-322.
    9. Zhu, Bing & van Dijk, Dorinth & Lizieri, Colin, 2024. "Price diffusion across international private commercial real estate markets," Journal of International Money and Finance, Elsevier, vol. 140(C).

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