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A comparison between office rent determinants of Istanbul and other major metropolitan areas

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Author Info
V.Atilla Oven ()
Dilek Pekdemir ()

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Abstract

Office rent determinants are well established for various metropolitan areas in the US [2, 3, 25] and some other international centres in Europe, especially in the UK [12, 17, 28]. The site selection and investment decisions for new office construction will largely depend on the information how office rent determinants are ranked according to their importance. For this purpose, the ranking of 52 office rent determinants for the metropolitan area of Istanbul are presented using the technique of factor analysis, and later compared with the reported findings of available major metropolitan areas. It has been found that, the only parameter commonly found significant is the vacancy rate. The results point out that regional differences and different economic conditions can significantly alter the perceived importance of rental determinants. Keywords: office rent determinants, factor analysis.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p166.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p166

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  1. Henry O. Pollakowski & Susan M. Wachter & Lloyd Lynford, 1992. "Did Office Market Size Matter in the 1980s? A Time-Series Cross-Sectional Analysis of Metropolitan Area Office Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(2), pages 302-324. [Downloadable!] (restricted)
  2. John S. Hekman, 1985. "Rental Price Adjustment and Investment in the Office Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(1), pages 32-47. [Downloadable!] (restricted)
  3. Petros S. Sivitanides, 1997. "The Rent Adjustment Process and the Structural Vacancy Rate in the Commercial Real Estate Market," Journal of Real Estate Research, American Real Estate Society, vol. 13(2), pages 195-210. [Downloadable!]
  4. Sivitanidou Rena, 1995. "Urban Spatial Variations in Office-Commercial Rents: The Role of Spatial Amenities and Commercial Zoning," Journal of Urban Economics, Elsevier, vol. 38(1), pages 23-49, July. [Downloadable!] (restricted)
  5. James R. Frew & G. Donald Jud, 1988. "The Vacancy Rate and Rent Levels in the Commercial Office Market," Journal of Real Estate Research, American Real Estate Society, vol. 3(1), pages 1-8. [Downloadable!]
  6. Sivitanidou, Rena, 1996. "Do Office-Commercial Firms Value Access to Service Employment Centers? A Hedonic Value Analysis within Polycentric Los Angeles," Journal of Urban Economics, Elsevier, vol. 40(2), pages 125-149, September. [Downloadable!] (restricted)
  7. Hendershott, Patric H., 1996. "Rental Adjustment and Valuation in Overbuilt Markets: Evidence from the Sydney Office Market," Journal of Urban Economics, Elsevier, vol. 39(1), pages 51-67, January. [Downloadable!] (restricted)
  8. Shilling, James D. & Sirmans, C. F. & Corgel, John B., 1987. "Price adjustment process for rental office space," Journal of Urban Economics, Elsevier, vol. 22(1), pages 90-100, July. [Downloadable!] (restricted)
  9. Webb, R. Brian & Fisher, Jeffrey D., 1996. "Development of an Effective Rent (Lease) Index for the Chicago CBD," Journal of Urban Economics, Elsevier, vol. 39(1), pages 1-19, January. [Downloadable!] (restricted)
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