| Estimating Natural Vacancy
Rates in Office Markets Using a Time-Varying Model Authors:
Raymond Y. C. Tse and Dominique Fischer
Start Page: 35
End Page: 46
Volume:11
Issue Number: 01
Year: 2003
Publication: Journal of Real Estate Literature
Abstract:
This study presents estimates of a time-varying, dynamic adjustment model
of the
office market using time series data from Hong Kong, Sydney, Perth and
London. It aims to demonstrate that the natural vacancy rate of office
property can be fitted into a time-varying framework. The model innovates
in considering the stochastic nature of natural vacancy rates. The data
shows that the stationary component of natural vacancy rates tends to
differ across cities.
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