Author: G. Stacy Sirmans, C.F. Sirmans, and John D. Benjamin

Start Page: 141
End Page: 152
Volume: 5
Issue Number: 1
Year: 1990
Publication: Journal of Real Estate Research

Abstract: This paper examines apartment rental concessions and their effect on property values through apartment rent and occupancy rates. A simultaneous equation model is used to estimate rent and occupancy equations in linear, semilog, and logged form. The results show that rental concessions have a positive effect on both rent and occupancy rates. This would indicate that concessions have a positive effect on property values since higher capitalized value should follow. The results also reveal that various amenities and services provided by apartment units have significant effects on rent.