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| The Information Precision of CBD Office
Vacancy Rates Author: Leon G. Shilton and Janet K. Tandy Start Page: 421 Abstract: Consistent with the
rational expectations information model (REIM), the difference among reported area CBD
office vacancy rates is proportional to the level of vacancy, inversely proportional to
the size of the inventory, and significantly higher when both a national vendor and a
local agent make simultaneous reports. Underlying volatility in the market and the cost
and difficulty of acquiring information are the principal causes of the information
variance. The difficulties and ambiguities in obtaining information are reviewed and the
Diamond REIM model is tested using encountered published vacancy rates for central
business districts for the period 1985-1989. |
