Office Capitalization Rates: Real Estate and Capital Market Influences
Focusing on the office capitalization rate, the central objective of this article is to shed light on two sets of issues that have not yet been fully researched. The first involves the importance of local-fixed and time-variant components of the office capitalization rate, and the significance of persistence in its time trends. The second centers on the relative importance of local office markets and the national capital market in shaping the various components of the office capitalization rate. Extensive econometric analysis of capitalization-rate series employed to address these issues highlights the existence of both local fixed and time-variant effects, while indicating differential persistence of time trends across markets. Moreover, such analysis uncovers the pivotal role of specific local office-market traits and the lesser role of national capital-market features in determining office capitalization-rate variations. Such findings on the role of local influences may provide a richer foundation for asset valuation and investment practices. Copyright 1999 by Kluwer Academic Publishers
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:kap:jrefec:v:18:y:1999:i:3:p:297-322. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.