Authors: John F. McDonald

Start Page: 223
End Page:242
Volume:10
Issue Number: 02
Year: 2002
Publication: Journal of Real Estate Literature

   
Abstract: The construction of a disastrous oversupply of office space in the late 1980s created a strong need for better methods for analyzing and forecasting office markets. This article examines the econometric forecasting models that have been developed. Substantial progress has been made in measuring and understanding office markets and in modeling office development decisions. The studies indicate that development of office space had been based on myopic expectations of market value, and this was a chief source of overbuilding. Practitioners are now aware of the cyclical nature of office markets, and have better information at their disposal than in the 1980s.