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The massive shift to working from home during the Covid-19 pandemic triggered discussions about its potential impact on the future demand for office space and the risk it poses to the performance of office markets. Against this background, the goal of this paper is to investigate the link between working from home and the evolution of key indicators of office occupier markets across Europe over the past three decades. Based on the data from Eurostat and CBRE, the paper uses panel regression to investigate the temporal as well as cross-sectional relationships between the share of the workforce working from home and office rents and vacancy rates in major cities. The results are interesting in several ways. Firstly, changes in the share of employees working from home did not appear to have any significant impact on the evolution of rents or vacancy rates over time. However, occasional homeworking was significant in explaining cross-sectional differences in office market indicators. Moreover, contrary to the initial expectations, higher share of employees occasionally working from home appeared to be associated with stronger performance of the respective office market. As explanation, the paper proposes a hypothesis that this was due to working from home being only one aspect of broader changes in the office work environment and related socio-economic trends that had a net beneficial effect on office occupier markets. Although the results refer to historical developments and may not be fully applicable to the current context of the pandemic, they highlight the need to consider working from home in a broader perspective of office occupier trends and ways of working. [ABSTRACT FROM AUTHOR]

Large similarities exist between the labor and real estate space markets. The natural rate of unemployment (NRU) and the natural vacancy rate (NVR) are important in modeling these markets. The real estate literature has drawn on early modeling of the labor market and has predominantly assumed the NVR to be constant in time. We consider a range of approaches to estimate cross-sectional and time variation in the NVR for the US office market. The results provide no evidence for a time trend, but the NVR may still vary temporally although it is difficult to identify plausible and consistent variation. [ABSTRACT FROM AUTHOR]

This article examines the U.S. market for Medical Office Buildings (MOB), a segment of the office market that has received little attention in the academic literature. Our attention is directed towards the impact of Certificate-of-Need (CON), a set of state level distortionary public laws that regulate health services planning. With respect to real estate, we find CON regulations increase rents and sales prices medical office building (MOB) rental rates. What makes these findings particularly interesting is that none of the states that currently have CON legislation in place have any language restricting MOB development. The empirical findings suggest that there is a supply constraint due to CON that has a distortionary effect on the MOB market. [ABSTRACT FROM AUTHOR]

Copyright of Zeitschrift für Wirtschaftsgeographie is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Standort: Zeitschrift für Angewandte Geographie is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article investigates how real estate stakeholders price information conveyed by voluntary environmental certification schemes in Sao Paulo, the largest metropolitan area of Latin America. In addition to low incidence of green buildings, the city and many local urban agglomerations in Brazil exhibit weak environmental performance due to limited capacity to enforce existing regulation. Therefore, we exploit the role of internationally accredited third-party environmental audit schemes. In addition to comparing labelled and non-labelled properties in a hedonic framework, we also examine pricing discrepancies related with the intention to certify (registration), but no achievement of actual certification in a timely manner. Our results systematically indicate that labelled office properties in Sao Paulo yield a larger green premium than their peers from developed countries. Findings also suggest that applicants who do not obtain the label upon delivery do not receive any green premiums and may be subject to discounts, depending on specification, beyond that of other non-green office buildings. These findings provide further evidence of the relevance of market diffusion and economic governance linked to the implicit pricing of environmental labels. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

All property markets have a natural vacancy rate (NVR). Theory suggests that when the actual vacancy rate exceeds this NVR the market will be unbalanced. Then, rents will fall to restore equilibrium. Conversely, when vacancies are below the NVR, rents will rise. By establishing a 'tipping point' between positive and negative rental growth, the NVR is a useful tool for analysing market cycles. Standard econometric practice is to model the NVR as a constant. However, this paper finds that there was a large structural shift in the natural vacancy rate for Dublin office space in the late 1990s. Allowing for this, two discrete NVRs are estimated for Dublin. For the 1978-1998 period, the NVR is calculated at 5.2%. This is broadly in line with rule-of-thumb estimates used by industry practitioners. However, the estimated NVR for the 1999-2009 period is 15.0 % - more than twice the 7% rate that is normally assumed. One interpretation is that Dublin's office market is set to recover sooner than expected. Currently, the actual vacancy rate is just over 23%. Rents will only stop falling when this figure has been reduced into line with the NVR. For a given rate of net absorption, this will be achieved more quickly if the NVR is 15% than if it were 7%. [ABSTRACT FROM AUTHOR]

Abstract: This article stresses the importance of urban planning interventions on real estate office markets in an environment increasingly characterized by globalization processes and progress of information and communication technologies, leaving behind the traditional influence of more market-related variables spread abroad vast literature. It contends that a better indirect control exerted by municipal authorities may launch the performance and characteristics of these markets. Within this scope, an innovative methodology and model are proposed, aimed at assisting municipal decisions in the definition of strategic policies concerning location or relocation of offices, and respective influences over rents. This methodology and this model have a flexible ongoing character that fits the anytime concrete features of local office markets. They are applied, as a case study, to the office market of Oporto city (Portugal). Implications for urban policy are inferred and generalized from this analysis. [ABSTRACT FROM AUTHOR]

Abstract: Despite the growing recognition that metropolitan real estate markets are segmented spatially and that property development is still profoundly local, research has taken little notice of agents that actually initiate and propel the development process. Earlier studies that aimed at identifying metropolitan segmentation employed statistical techniques whilst ignoring the practices of agents that might shed light on the notion of segmentation. Greater Toronto’s office market, which is Canada’s largest, exemplifies a real estate market far more spatially segmented than the downtown–suburban framework, a dichotomy so extensively use in research. Locational preferences of the numerous developers that work in this market tend to be highly localized, confirming deep-rooted segmentation. Their preferences correspond to submarket classification and follow dividing lines that crisscross the metropolitan region, emphasizing the extent and the power of parochialism, which defines the nature of real estate development. [Copyright &y& Elsevier]

This paper examines the influence of bargaining power and property class on the prices of heterogeneous goods. Specifically, it explores the impact of buyer and seller characteristics on the transaction prices of office properties. The empirical model is based on the work of Harding, Rosenthal, and Sirmans (), which developed a method to distinguish between the impact of buyer and seller attributes on bargaining power and the choice of otherwise unidentified price effects (i.e., property class) in the context of hedonic price models. The data set contains information on transaction prices of office properties in Cook, DuPage, and Lake Counties, Illinois from 1995 to 1997. The results reveal systematic differences in bargaining power and property class for certain groups of buyers and sellers contained within the sample. [ABSTRACT FROM AUTHOR]

A model of the building cycle is presented, expressed in terms of endogenous fluctuations in development activity, vacancy and rents around an equilibrium growth path. The dynamic behaviour of the model is determined by lags in three adjustment processes: the occupier response to changes in rents, the development response to demand changes mediated through a rent adjustment process, and the construction delay between starts and completions. The frequency and severity of the cycle depend upon the values of five key parameters including the construction lag and the transmission coefficient linking vacancy to development starts. The model has been fitted to data for the City of London office market, yielding estimates for key parameters that are consistent with its observed cyclical behaviour. [ABSTRACT FROM AUTHOR]

This study examines Federal Government office leases using data from Texas and Oklahoma during the 198 1- 1991 time period. The lease indifference model presented here indicates that landlords may be willing to accept lower rents from government tenants due to reduced tenant risk, but that such discounts may be offset by other premiums implicit in the lease contract. The data collected for this study reveal that rents paid by the government are significantly higher than avenge market rents during this time period. A time-series, cross-sectional regression analysis of the spread between market rents and office rents to government tenants in nine metropolitan markets suggests that the difference is affected in part by expense pass-throughs, lease period, amount of space leased, and local market conditions. [ABSTRACT FROM AUTHOR]

A functional form for the valuation of office buildings is a third-order function that replicates the constrained cost function in which one of the inputs, land, is fixed. The third-order transformation improves a hedonic regression pricing model and reduces the autocorrelation. The presence of neighborhood landmarks, selected avenue address, and building size influence the office building value. The data set includes 103 midtown Manhattan office building sales transactions from 1980 to first quarter 1990. [ABSTRACT FROM AUTHOR]

That the public regulation of property supply should affect property prices, risk and returns is to be expected. But how this works has not been adequately researched. The framework for doing this should include the following: a treatment of the three markets (development, investment and consumer) separately and in combination: an analysis of the effects, not just on prices, but on risks and returns; an analysis in the long‐ as well as the short‐term; an analysis at the level of the ‘industry’ as well as the ‘firm'; an analysis at the level of the whole country; an ‘institutional; approach to economics. A study of the housing and the office markets in the Netherlands suggests that the two most important questions concerning the public regulation of supply are: does it stimulate or restrict supply and, is regulation steady and predictable, or unstable? It is suggested in this paper that the stimulation or restriction of supply affects the general level of property prices, while steady or unpredictable regulation affects the level of return on property. [ABSTRACT FROM PUBLISHER]