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| Econometric Integration of Real Estate's Space and Capital
Markets Author: Timothy W. Viezer Start Page: 503 Abstract: This study presents
the Real Estate Econometric Forecast Model (REEFM), a pooled recursive system that
integrates real estate’s space and capital markets. The REEFM is empirically
estimated using data from fifty-one metropolitan office markets over the years
1985–96. The core of the REEFM consists of six stochastic equations for each property
type. These six equations predict occupancy, real rents, capitalization rates, market
value per square foot, net change in stock and real construction costs. The model also
produces synthetic investment return series called Implied Market Returns that can be used
to guide investment acquisition activity and assess the representativeness of other
investment returns. |
