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Office Rent Determinants in the Chicago Area
Author(s) -
Mills Edwin S.
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 - 10.1111/1540-6229.00584
Subject(s) - economic rent , metropolitan area , lease , sample (material) , value (mathematics) , economics , space (punctuation) , variable (mathematics) , variables , measure (data warehouse) , econometrics , microeconomics , finance , geography , statistics , mathematics , computer science , mathematical analysis , chemistry , archaeology , chromatography , database , operating system
This paper analyzes 1990 office asking rents in the Chicago metropolitan area. It carefully specifies a measure of the present value of a lease, taking account of important properties of rent offers. This present value is the dependent variable in the statistical analysis. The sample data analyzed pertain to 543 offices that contain about 80% of the office space in the metropolitan area. The present value of asking rents is related to many building characteristics and to each building's location. The analysis demonstrates that asking rents depend on about fifteen characteristics of the building and on a careful specification of its location.