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| Rent Adjustments and Forecasts in the
Industrial Market Author: Bob Thompson and Sotiris Tsolacos Start Page: 151 Abstract: This study estimates
models of industrial rents at the national level in Great Britain. James Lan Wooten and CB
Hillier Parker rent indices are used to model changes in real rents. These changes are
positively related to changes in real GDP and inversely affected by absorption, as
measured by King Sturge & Co. Additionally, changes in rents convey information not
captured by GDP and absorption. The lagged effects of the variables differ for each index,
attributable to the construction methodologies followed. Dynamic forecasts for both models
show a small overprediction in 1996 and 1997. Ex ante forecasts suggest that both will
show positive real growth throughout 1998 and 1999. |
