Term Structures in the Office Rental Market in Stockholm
Posted: 16 Sep 2002
This paper contains an empirical study of the rental term structure in a property market that included a dramatic boom and bust cycle. The study is applied to office leases in commercial properties located in Stockholm CBD, Sweden. The time period under study is 1977-1991. The number of observations (lease contracts) that we were able to make full use of in the regression analyses is n=861. For seven out of fifteen years studied, a significant term structure was observed. The estimated hedonic rent equation was also used to construct an office rental index.
Keywords: Rental market, office rent, lease term, term structure, property market, property cycle, rental index
JEL Classification: R00, R33
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