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Office Rent Determinants During Market Decline and Recovery

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  • Barrett Slade

Abstract

This article empirically examines office rent determinants in distinct periods of a market cycle. The study uses a dataset of office properties located in a large metropolitan area and spanning a six-year period. During this period, office rents experienced a significant decline and recovery. A time-varying parameter rent index identifies three distinct periods of the cycle: decline, trough and recovery. Tests of structural change conclude that market participants value the determinants of office rents differently during the periods. A microexamination of each rent determinant over the periods of the market cycle provides a greater understanding of how rents vary over time and the factors that influence them.

Suggested Citation

  • Barrett Slade, 2000. "Office Rent Determinants During Market Decline and Recovery," Journal of Real Estate Research, Taylor & Francis Journals, vol. 20(3), pages 357-380, January.
  • Handle: RePEc:taf:rjerxx:v:20:y:2000:i:3:p:357-380
    DOI: 10.1080/10835547.2000.12091041
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