Term Structures in the Office Rental Market in Stockholm

Posted: 16 Sep 2002

See all articles by Ake Gunnelin

Ake Gunnelin

Royal Institute of Technology (KTH) - Department of Real Estate and Construction Management

Bo Soederberg

University of Gävle - Department of Business Administration

Abstract

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

Suggested Citation

Gunnelin, Ake and Soederberg, Bo, Term Structures in the Office Rental Market in Stockholm. Journal of Real Estate Finance & Economics, Vol. 26, No. 2. Available at SSRN: https://ssrn.com/abstract=319902

Ake Gunnelin (Contact Author)

Royal Institute of Technology (KTH) - Department of Real Estate and Construction Management ( email )

SE-100 44 Stockholm
Sweden

Bo Soederberg

University of Gävle - Department of Business Administration ( email )

801 76 Gavle
Sweden

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