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| European Economic Integration and
Commercial Real Estate Markets: An Analysis of Trends in Market Determinants Author: Elaine M. Worzala and Alexandra Bernasek Start Page: 159 Abstract: Economic theory
predicts economic integration in the European Community (EC) will result in single markets
for individual goods, services and factors of production. The specific characteristics of
commercial real estate make it unlikely that a single market will result. However, even
without a single market, theory predicts that markets for similar real estate (commercial
office, industrial and retail) will converge as a result of economic integration. This
paper examines several market determinants to see if we can find evidence of the predicted
convergence. Looking at data from 1983 to 1994 we find evidence of some convergence but
the extent is small and major institutional differences within the countries remain.
Implications are that barriers to the efficient flow of investment funds into real estate
remain and distinct markets will continue to characterize real estate within the EC. |
