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Local Commercial and Industrial Rental Trends and Property Market Constraints

Author

Listed:
  • Colin Jones

    (Department of Building, Engineering and Surveying, Heriot-Watt University, Edinburgh EH14 4AS, UK, C.A.Jones@hw.ac.uk)

  • Allison Orr

    (Department of Building, Engineering and Surveying, Heriot-Watt University, Edinburgh EH14 4AS, UK, A.M.Orr@hw.ac.uk)

Abstract

The paper assesses the differential impact of property market constraints on the long-run rental trends in each of the commercial and industrial property market sectors. The perceived view that supply constraints are very inelastic in the retail sector, less so for offices and elastic for industrial properties is reconsidered. A series of hypotheses are derived and tested by an analysis of variance technique which decomposes rental change into local and national components. The paper concludes that changes in the pattern of spatial activity and specific property market processes have resculptured the nature of supply constraints. The result is that the spectrum of supply elasticities has narrowed.

Suggested Citation

  • Colin Jones & Allison Orr, 1999. "Local Commercial and Industrial Rental Trends and Property Market Constraints," Urban Studies, Urban Studies Journal Limited, vol. 36(2), pages 223-237, February.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:2:p:223-237
    DOI: 10.1080/0042098993574
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    References listed on IDEAS

    as
    1. Gyourko, Joseph & Voith, Richard, 1992. "Local market and national components in house price appreciation," Journal of Urban Economics, Elsevier, vol. 32(1), pages 52-69, July.
    2. Richard Voith & Theodore Crone, 1988. "National Vacancy Rates and the Persistence of Shocks in U.S. Office Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 437-458, December.
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