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| Office Rent Determinants during Market Decline and Recovery Author: Barrett A. Slade Start Page: 357 Abstract: This article empirically examines office rent determinants in
distinct periods of a market cycle. The study uses a dataset of office properties located
in a large metropolitan area and spanning a six-year period. During this period, office
rents experienced a significant decline and recovery. A time-varying parameter rent index
identifies three distinct periods of the cycle: decline, trough and recovery. Tests of
structural change conclude that market participants value the determinants of office rents
differently during the periods. A microexamination of each rent determinant over the
periods of the market cycle provides a greater understanding of how rents vary over time
and the factors that influence them. |
