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Integrating Research on Markets for Space and Capital †
Author(s) -
Fisher Jeffrey D.
Publication year - 1992
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00578
Subject(s) - economics , factor market , capital market , real estate , investment (military) , capital (architecture) , space (punctuation) , capital market line , market analysis , capital market imperfections , market microstructure , supply and demand , microeconomics , financial economics , market depth , order (exchange) , finance , computer science , paleontology , management , archaeology , horse , politics , biology , political science , stock market , law , history , operating system
This article discusses the importance of recognizing that there are two distinct but interrelated real estate markets: the market for tenant space and the market for investment capital. The use decision is made in the space market whereas the investment decision is made in the capital market. The article points out that past research has tended to focus on a separate analysis of each of these two markets. That is, research historically has focused on understanding how changes in supply and demand affect equilibrium in either the space market or the capital market as if each market was autonomous. A graphical framework is illustrated that can be used to examine the effect of an exogenous shock to market equilibrium from either the market for space or the market for capital.