Concordance in Global Office Market Cycles

Regional Studies, Vol. 48, Issue 3, pp. 456-470, 2014

26 Pages Posted: 19 Aug 2013 Last revised: 14 Jun 2014

See all articles by Simon Stevenson

Simon Stevenson

University of Reading - Henley Business School

Alexey Akimov

Lancaster University Management School

Elaine Hutson

Monash University - Dept of Banking and Finance; Financial Research Network (FIRN)

Alexandra Krystalogianni

Independent

Date Written: March 1, 2013

Abstract

A large proportion of international real estate investment is concentrated in the office markets of the world’s largest cities. However, many of these global cities are also key financial services centres, highlighting the possibility of reduced economic diversification from an investor’s perspective. This paper assesses the degree of synchronization in cycles across twenty of the world’s largest office markets, finding evidence of significant concordance across a large number of markets. The results highlight the problems associated with commonalities in the underlying economic bases of the markets. The concentration of investment also raises the possibility of common flow of funds effects that may further reduce diversification opportunities.

Keywords: real estate, international office markets, economic diversification

JEL Classification: F3, F36, G1, G15

Suggested Citation

Stevenson, Simon and Akimov, Alexey and Hutson, Elaine and Krystalogianni, Alexandra, Concordance in Global Office Market Cycles (March 1, 2013). Regional Studies, Vol. 48, Issue 3, pp. 456-470, 2014, Available at SSRN: https://ssrn.com/abstract=2309354

Simon Stevenson

University of Reading - Henley Business School ( email )

Greenlands
Reading, Henley on Thames RG6 6AH
United Kingdom

Alexey Akimov (Contact Author)

Lancaster University Management School ( email )

Department of Accounting & Finance
Bailrigg
Lancaster, Lancashire LA1 4YX
United Kingdom
+44 1524 593635 (Phone)

HOME PAGE: http://www.lancaster.ac.uk/lums/people/all/alexey-akimov/

Elaine Hutson

Monash University - Dept of Banking and Finance ( email )

PO Box 197
Caulfield East, Victoria 3145
Australia
+61399032110 (Phone)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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