The Rent Adjustment Mechanism in Office Market of Major European Cities
||The Rent Adjustment Mechanism in Office Market of Major European Cities
||21st Annual European Real Estate Society Conference in Bucharest, Romania
||Uncertainty of global economy has been increasing after fiscal crisis in America and Europe. Consequently, real estate asset and office market in Europe has been unstable also. Whereas interest in office market in has increased, studies explaining difference in natural vacancy and rent adjustment rate in European cities are incomplete. Natural vacancy means vacancy rate at equilibrium, and gap between actual vacancy rate and natural vacancy rate plays important role in rent adjustment process. This paper explains natural vacancy rate and different rent adjustment rate in major European cities using quarterly date set since 2000. Results say that natural vacancy rate exists each city and rent adjustment rates are different in those cities significantly. Difference in rent adjustment rate informs that elasticity of excessive demand or supply is different in those cities. Further researches investigating factors that influencing rent adjustment rate are needed.
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||G : Market Research, Analysis & Forecasting
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