References (26)



A Simultaneous Equation Model of the Office Cycle for the Parisian Region (French)

Richard Malle

Paris Dauphine University; BNP Paribas Real Estate

February 1, 2009

This paper presents a simultaneous equation model for the office market. We determine supply and demand relationships to link main fundamentals of commercial real estate: net absorption, vacancy rate, real rents and construction. This model is applied to the office market in the Paris region over the 1994-2008 period. Office market cycles are then established according to different employment forecasts from 2009 to 2020. The results show that the employment cycle determines the cycle of office market fundamentals. Interest rates have a limited impact on the decisions of property actors. From 2009 to 2010, empirical results show that real rents may be historically low because of the economic shock in 2008-2009.

Number of Pages in PDF File: 36

Keywords: office market, office rents, real estate forecast

JEL Classification: C53, O18, R33

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Date posted: June 21, 2009 ; Last revised: June 25, 2009

Suggested Citation

Malle, Richard, A Simultaneous Equation Model of the Office Cycle for the Parisian Region (French) (February 1, 2009). Available at SSRN: https://ssrn.com/abstract=1423382 or http://dx.doi.org/10.2139/ssrn.1423382

Contact Information

Richard Malle (Contact Author)
BNP Paribas Real Estate ( email )
Paris Dauphine University ( email )
Place du Maréchal de Lattre de Tassigny
Paris, 75775

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