Rent Adjustments and Forecasts in the Industrial Market

Posted: 28 Apr 1999

See all articles by Bob Thompson

Bob Thompson

RETRI Group

Sotiris Tsolacos

University of Reading - Centre for Spatial and Real Estate Economics (CSpREE)

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.

JEL Classification: R33

Suggested Citation

Thompson, Robert and Tsolacos, Sotiris, Rent Adjustments and Forecasts in the Industrial Market. Available at SSRN: https://ssrn.com/abstract=158615

Robert Thompson

RETRI Group ( email )

44 Stewart Avenue
Upminster, RM14 2AF
United Kingdom
+44 (0)7777 698758 (Phone)

Sotiris Tsolacos (Contact Author)

University of Reading - Centre for Spatial and Real Estate Economics (CSpREE) ( email )

Department of Economics Whiteknights P.O. Box 219
Reading, RG6 6AH
United Kingdom
44-0118-931-823 (Phone)
44-118-931-6533 (Fax)

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