The Determinants of Office Rents and Yields: The International Evidence

37 Pages Posted: 7 Feb 2019

See all articles by Jedrzej Pawel Bialkowski

Jedrzej Pawel Bialkowski

University of Canterbury - Department of Economics and Finance

Sheridan Titman

University of Texas at Austin - Department of Finance; National Bureau of Economic Research (NBER)

Garry J. Twite

University of Melbourne - Department of Finance; University of Melbourne - Faculty of Business and Economics; Financial Research Network (FIRN)

Date Written: January 21, 2019

Abstract

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

Bialkowski, Jedrzej Pawel and Titman, Sheridan and Twite, Garry J., The Determinants of Office Rents and Yields: The International Evidence (January 21, 2019). Available at SSRN: https://ssrn.com/abstract=3320805 or http://dx.doi.org/10.2139/ssrn.3320805

Jedrzej Pawel Bialkowski

University of Canterbury - Department of Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

Sheridan Titman

University of Texas at Austin - Department of Finance ( email )

Red McCombs School of Business
Austin, TX 78712
United States
512-232-2787 (Phone)
512-471-5073 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Garry J. Twite (Contact Author)

University of Melbourne - Department of Finance ( email )

Faculty of Economics and Commerce
Parkville, Victoria 3010 3010
Australia

University of Melbourne - Faculty of Business and Economics ( email )

Department of Finance
Melbourne, VIC 3010
Australia
+61 3 90356172 (Phone)

Financial Research Network (FIRN) ( email )

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

Register to save articles to
your library

Register

Paper statistics

Downloads
25
Abstract Views
185
PlumX Metrics