IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2017_341.html

Situations Vacant: A Conceptual Framework for Commercial Real Estate Vacancy

Author

Listed:
  • Kevin Muldoon-Smith
  • Paul Greenhalgh

Abstract

Commercial real estate vacancy is a key indicator of property market efficiency, economic performance and urban resilience. However, there has been little conceptual reflection into the abstract notion of vacancy beyond binary distinctions of natural and structural vacancy. Although useful simplifying meta-concepts, neither accounts for the internal complexity and imperfection that permeates real commercial property markets. Consequently, the objective of this article is to outline a conceptual framework that describes vacancy across the commercial real estate building life-cycle – from initial construction to final demolition and redevelopment. The originality of the research rests in its utility as the first known holistic examination of commercial real estate vacancy beyond that of an abstract economic factor, while its value is explicit in the conceptual typology which can be used by researchers interested in market imperfections and consequent interventions.

Suggested Citation

  • Kevin Muldoon-Smith & Paul Greenhalgh, 2017. "Situations Vacant: A Conceptual Framework for Commercial Real Estate Vacancy," ERES eres2017_341, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2017_341
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2017-341
    Download Restriction: no
    File URL: https://eres.architexturez.net/system/files/P_20170131215707_1504.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    2. David M. Blank & Louis Winnick, 1953. "The Structure of the Housing Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 67(2), pages 181-208.
    3. Carsten Lausberg, 2008. "The Rising Natural Vacancy Rate In The German Office Market And Its Effects On Real Estate Finance," ERES eres2008_190, European Real Estate Society (ERES).
    4. repec:arz:wpaper:eres2008-190 is not listed on IDEAS
    5. Paul Greenhalgh & Mary Lou Downie & Peter Fisher & Mike Barke, 2003. "Grease to the Wheel or a Spanner in the Works? An Investigation of Office and Industrial Occupier Displacement and Property Market Filtering in Tyne and Wear Using the Chaining Technique," Regional Studies, Taylor & Francis Journals, vol. 37(4), pages 381-394.
    6. Raymond Y. C. Tse & James R. Webb, 2003. "Models of Office Market Dynamics," Urban Studies, Urban Studies Journal Limited, vol. 40(1), pages 71-89, January.
    7. N. Dunse, 2002. "Rental Depreciation, Obsolescence and Location: The Case of Industrial Properties," ERES eres2002_121, European Real Estate Society (ERES).
    8. 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.
    9. Miceli, Thomas J. & Sirmans, C.F., 2013. "Efficiency rents: A new theory of the natural vacancy rate for rental housing," Journal of Housing Economics, Elsevier, vol. 22(1), pages 20-24.
    10. Willem G. Keeris & Philip W. Koppels, 2006. "Uncertainty About The Vacancy Rate In The Dutch Office Market, Due To The Different Vacancy Types And Stratified Structure," ERES eres2006_235, European Real Estate Society (ERES).
    11. Sara Jane Wilkinson & Richard Reed, 2011. "Examining and quantifying the drivers behind alterations and extensions to commercial buildings in a central business district," Construction Management and Economics, Taylor & Francis Journals, vol. 29(7), pages 725-735, May.
    12. Hilde Remøy & Philip W. Koppels & Hans de Jonge, 2009. "Structural Vacancy of Office Buildings: The Influence of Building- and Location- Characteristics in the Case of Amsterdam," ERES eres2009_157, European Real Estate Society (ERES).
    13. repec:arz:wpaper:eres2009-157 is not listed on IDEAS
    14. William C. Wheaton, 1999. "Real Estate “Cycles”: Some Fundamentals," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(2), pages 209-230, June.
    15. Pissarides, Christopher A, 1985. "Short-run Equilibrium Dynamics of Unemployment Vacancies, and Real Wages," American Economic Review, American Economic Association, vol. 75(4), pages 676-690, September.
    16. Paul Greenhalgh, 2008. "An Examination of Business Occupier Relocation Decision Making: Distinguishing Small and Large Firm Behaviour," Journal of Property Research, Taylor & Francis Journals, vol. 25(2), pages 107-126, November.
    17. Neil Crosby & Steven Devaney, 2006. "Depreciation And Its Impact On The Total Return Of Uk Commercial Real Estate, 1994-2003," ERES eres2006_162, European Real Estate Society (ERES).
    18. Robert A. Beauregard, 2005. "The Textures of Property Markets: Downtown Housing and Office Conversions in New York City," Urban Studies, Urban Studies Journal Limited, vol. 42(13), pages 2431-2445, December.
    19. Andrew E. Baum, 1993. "Quality, Depreciation, and Property Performance," Journal of Real Estate Research, American Real Estate Society, vol. 8(4), pages 541-566.
    20. Daniel A. Hagen & Julia L. Hansen, 2010. "Rental Housing and the Natural Vacancy Rate," Journal of Real Estate Research, American Real Estate Society, vol. 32(4), pages 413-434.
    21. Neil Crosby & Steven Devaney, 2006. "Depreciation and its Impact on the Total Return of UK Commercial Real Estate, 1994-2003," Real Estate & Planning Working Papers rep-wp2006-05, Henley Business School, University of Reading.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark Merante & Keren Mertens Horn, 2016. "Is Home Sharing Driving up Rents? Evidence from Airbnb in Boston," Working Papers 2016_03, University of Massachusetts Boston, Economics Department.
    2. Horn, Keren & Merante, Mark, 2017. "Is home sharing driving up rents? Evidence from Airbnb in Boston," Journal of Housing Economics, Elsevier, vol. 38(C), pages 14-24.
    3. Toshihiko Mukoyama, 2019. "Heterogeneous Jobs and the Aggregate Labour Market," The Japanese Economic Review, Springer, vol. 70(1), pages 30-50, March.
    4. Arnaud Chéron & Jean‐Olivier Hairault & François Langot, 2011. "Age‐Dependent Employment Protection," Economic Journal, Royal Economic Society, vol. 121(557), pages 1477-1504, December.
    5. Stefania Albanesi & Aysegul Sahin, 2018. "The Gender Unemployment Gap," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 30, pages 47-67, October.
    6. Yashiv, Eran, 2007. "Labor search and matching in macroeconomics," European Economic Review, Elsevier, vol. 51(8), pages 1859-1895, November.
    7. repec:spo:wpmain:info:hdl:2441/3aom2mve1k829p8sp4h3vrpgkg is not listed on IDEAS
    8. Sheng, Yu & Xu, Xinpeng, 2011. "Real exchange rate, productivity and labor market frictions," Journal of International Money and Finance, Elsevier, vol. 30(3), pages 587-603, April.
    9. Emine Mine Thompson & Paul Greenhalgh & Kevin Muldoon-Smith & James Charlton & Michal Dolník, 2016. "Planners in the Future City: Using City Information Modelling to Support Planners as Market Actors," Urban Planning, Cogitatio Press, vol. 1(1), pages 79-94.
    10. Dinopoulos, Elias & Grieben, Wolf-Heimo & Şener, Fuat, 2023. "A Policy Conundrum: Schumpeterian Growth or Job Creation?," Economic Modelling, Elsevier, vol. 126(C).
    11. Emine Mine Thompson & Paul Greenhalgh & Kevin Muldoon-Smith & James Charlton & Michal Dolník, 2016. "Planners in the Future City: Using City Information Modelling to Support Planners as Market Actors," Urban Planning, Cogitatio Press, vol. 1(1), pages 79-94.
    12. Hashimoto, Ken-ichi & Ono, Yoshiyasu & Schlegl, Matthias, 2023. "Structural unemployment, underemployment, and secular stagnation," Journal of Economic Theory, Elsevier, vol. 209(C).
    13. Marczak, Martyna & Beissinger, Thomas & Brall, Franziska, 2022. "Technical Change, Task Allocation, and Labor Unions," GLO Discussion Paper Series 1177, Global Labor Organization (GLO).
    14. Matthieu Charpe & Peter Flaschel & Hans-Martin Krolzig & Christian Proaño & Willi Semmler & Daniele Tavani, 2015. "Credit-driven investment, heterogeneous labor markets and macroeconomic dynamics," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(1), pages 163-181, April.
    15. Merkl, Christian & van Rens, Thijs, 2019. "Selective hiring and welfare analysis in labor market models," Labour Economics, Elsevier, vol. 57(C), pages 117-130.
    16. Benedikt Herz & Thijs van Rens, 2020. "Accounting for Mismatch Unemployment," Journal of the European Economic Association, European Economic Association, vol. 18(4), pages 1619-1654.
    17. Sidong Zhao & Weiwei Li & Kaixu Zhao & Ping Zhang, 2021. "Change Characteristics and Multilevel Influencing Factors of Real Estate Inventory—Case Studies from 35 Key Cities in China," Land, MDPI, vol. 10(9), pages 1-29, September.
    18. Marco Guerrazzi, 2023. "Optimal growth with labor market frictions," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(4), pages 961-987, December.
    19. Gibson, John & Heutel, Garth, 2023. "Pollution and labor market search externalities over the business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 151(C).
    20. Fujita, Shigeru & Ramey, Garey, 2007. "Job matching and propagation," Journal of Economic Dynamics and Control, Elsevier, vol. 31(11), pages 3671-3698, November.
    21. Krolikowski, Pawel M. & McCallum, Andrew H., 2021. "Goods-market frictions and international trade," Journal of International Economics, Elsevier, vol. 129(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2017_341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.