Adjustments in the Labor and Real Estate Markets: Estimates of the Time Series Variation in the Natural Vacancy Rate

Angela J. Black; Steven P. Devaney; Patric H. Hendershott; Bryan D. MacGregor

Adjustments in the Labor and Real Estate Markets: Estimates of the Time Series Variation in the Natural Vacancy Rate

Angela J. Black, Steven P. Devaney, Patric H. Hendershott, Bryan D. MacGregor^* (Corresponding Author)

^*Corresponding author for this work

Accountancy & Finance, Finance

Research output: Working paper › Discussion paper

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Abstract

Large similarities exist between the labor and real estate space markets. The natural vacancy rate (NVR) and the natural rate of unemployment (NRU) are important in modeling these markets. The real estate literature has drawn on early modeling of the labor market and has predominantly assumed the NVR to be constant in time. We consider a range of approaches to estimate cross-sectional and time variation in the NVR for the US office market. The results provide no evidence for a time trend, but the NVR may still vary temporally although it is difficult to identify plausible and consistent time variation.

Original language	English
Place of Publication	Aberdeen
Publisher	University of Aberdeen
Pages	1-49
Number of pages	49
Volume	20-7
Publication status	Published - 1 Dec 2020

Publication series

Name	Discussion Papers in Economics and Finance
No.	7
Volume	20
ISSN (Electronic)	0143-4543

Bibliographical note

Acknowledgement
We thank CBRE Econometric Advisors for provision of most of the data used for this study.

Keywords

Natural Vacancy Rate
Natural Rate of Unemployment
Office Markets

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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title = "Adjustments in the Labor and Real Estate Markets: Estimates of the Time Series Variation in the Natural Vacancy Rate",

abstract = "Large similarities exist between the labor and real estate space markets. The natural vacancy rate (NVR) and the natural rate of unemployment (NRU) are important in modeling these markets. The real estate literature has drawn on early modeling of the labor market and has predominantly assumed the NVR to be constant in time. We consider a range of approaches to estimate cross-sectional and time variation in the NVR for the US office market. The results provide no evidence for a time trend, but the NVR may still vary temporally although it is difficult to identify plausible and consistent time variation.",

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AU - Devaney, Steven P.

AU - Hendershott, Patric H.

AU - MacGregor, Bryan D.

N1 - Acknowledgement We thank CBRE Econometric Advisors for provision of most of the data used for this study.

PY - 2020/12/1

Y1 - 2020/12/1

N2 - Large similarities exist between the labor and real estate space markets. The natural vacancy rate (NVR) and the natural rate of unemployment (NRU) are important in modeling these markets. The real estate literature has drawn on early modeling of the labor market and has predominantly assumed the NVR to be constant in time. We consider a range of approaches to estimate cross-sectional and time variation in the NVR for the US office market. The results provide no evidence for a time trend, but the NVR may still vary temporally although it is difficult to identify plausible and consistent time variation.

AB - Large similarities exist between the labor and real estate space markets. The natural vacancy rate (NVR) and the natural rate of unemployment (NRU) are important in modeling these markets. The real estate literature has drawn on early modeling of the labor market and has predominantly assumed the NVR to be constant in time. We consider a range of approaches to estimate cross-sectional and time variation in the NVR for the US office market. The results provide no evidence for a time trend, but the NVR may still vary temporally although it is difficult to identify plausible and consistent time variation.

KW - Natural Vacancy Rate

KW - Natural Rate of Unemployment

KW - Office Markets

M3 - Discussion paper

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T3 - Discussion Papers in Economics and Finance

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EP - 49

BT - Adjustments in the Labor and Real Estate Markets

PB - University of Aberdeen

CY - Aberdeen

ER -

Adjustments in the Labor and Real Estate Markets: Estimates of the Time Series Variation in the Natural Vacancy Rate

Abstract

Publication series

Bibliographical note

Keywords

UN SDGs

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