The Spatial Analysis of the United Kingdom Commercial Property Market

Values of the properties in nearby locations almost never differ drastically. This indicates that the values are dependent on their surroundings. Yet, the impact of the location on the value of a property is not constant and reacts in a unique way to changes under different economic events. To date, few authors have examined and exploited these spatial relationships in property markets.In the current research I focus on the commercial real estate market in the UK from a spatial perspective. I use prices of the commercial real estate and employ spatial econometrics to examine the UK property market and its phenomena, such as the spillover effect, prime and peripheral areas, 'fly-to-safety' areas, agglomerations, clusters that act differently from the whole property market or dominant areas that have influence on other areas. The commercial real estate market problems tackled are of importance for real estate investors. I aim to simplify the ways of examining a range of property market issues, to investigate spatial phenomena and to add value for commercial real estate investments decision making. Moreover, the spatial differences observed between the areas in the UK could be of interest for real estate market participants, for example in risk diversification when creating direct commercial real estate portfolios.