An Hedonic Analysis of the Rental Office Market in the Tokyo Central Business District: 1985-1994 Fiscal Years

Posted: 17 Oct 2000

See all articles by Koichi Nagai

Koichi Nagai

Mitsui Fudosan Co., Ltd.

Yasushi Kondo

Toyama University; Waseda University - School of Political Science and Economics

Makoto Ohta

University of Tsukuba; National Bureau of Economic Research (NBER)

Abstract

We study the rental office market in the Tokyo central business district by estimating hedonic equations for the office rent for 1985-94 fiscal years. This period includes the "Bubble" of asset prices, followed by its deflation. We find that the characteristics related to transportational conveniences are less effective in explaining office rents than the characteristics related to the agglomeration of offices and the amenity characteristics of the office buildings themselves. Using a skewed error-term specification, we show that the discount in rental transactions is not irrelevant. The hedonic office rent indices and possible policy implications are also presented.

JEL Classification: L85, R32

Suggested Citation

Nagai, Koichi and Kondo, Yasushi and Ohta, Makoto, An Hedonic Analysis of the Rental Office Market in the Tokyo Central Business District: 1985-1994 Fiscal Years. Available at SSRN: https://ssrn.com/abstract=236259

Koichi Nagai

Mitsui Fudosan Co., Ltd.

Mitsui Honkan Building 1-1
Nihonbashi-Muromachi 2-chome Chuo-ku
Tokyo, 103-0022
Japan

Yasushi Kondo (Contact Author)

Toyama University ( email )

Faculty of Economics 3190 Gofuku
Toyama, 930-8555
Japan

HOME PAGE: http://www.toyama-u.ac.jp/~ykondo/

Waseda University - School of Political Science and Economics ( email )

1-6-1 Nishi-Waseda
Shinjuku-ku, Tokyo 169-8050, Tokyo 169-8050
Japan

Makoto Ohta

University of Tsukuba ( email )

Institute of Policy and Planning Sciences
Tsukuba, Ibaraki 305-8573
Japan

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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