The Determinants of Office Rents and Yields: The International Evidence
37 Pages Posted: 7 Feb 2019
Date Written: January 21, 2019
Traditional urban models predict that office rents will be higher in larger and more prosperous cities with better transport and with industries with stronger agglomeration benefits. In addition, rental yields are expected to be lower in growing cities, especially when the supply of new office space is more constrained and the supply of capital is less constrained. We present evidence on commercial office rents and rental yields from 52 large cities in 29 developed and developing countries that is generally consistent with these implications.
Keywords: Global Real Estate Market, Capitalization Rate, Office Rental Yield, Office Rental Rates, Financial Centres, Public Transportblic Transport
JEL Classification: R4, R3
Suggested Citation: Suggested Citation