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Development costs and building height:a case study on offices

Author

Listed:
  • Ed Nozeman
  • Arno Van der Vlist

Abstract

We examine building height, historical building costs and current rental income for a sample of office buildings in the Netherlands. We address whether urban morphology, like building height and density, reflects the standard economic law of substitution between capital and land. Do we observe high building heights in attractive economic centres in which land is substituted for capital, and low building heights in less attractive centres? This is the central question we address in our research. We use a stratified sample strategy to sample office buildings with varying height and use historical information on development costs and match these to current rental transaction data.

Suggested Citation

  • Ed Nozeman & Arno Van der Vlist, 2018. "Development costs and building height:a case study on offices," ERES eres2018_158, European Real Estate Society (ERES).
  • Handle: RePEc:arz:wpaper:eres2018_158
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    More about this item

    Keywords

    Design; Development Cost; Office Rents; Real Estate Development;
    All these keywords.

    JEL classification:

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

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