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

Angela Black; Steven Devaney; Patric Henry Hendershott; Bryan D. MacGregor

doi:10.1080/09277544.2021.2006876

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

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

^*Corresponding author for this work

Accountancy & Finance, Accountancy

University of Reading
University of Aberdeen

Research output: Contribution to journal › Article › peer-review

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Abstract

Large similarities exist between the labor and real estate space markets. The natural rate of unemployment (NRU) and the natural vacancy rate (NVR) 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 variation.

Original language	English
Pages (from-to)	83-108
Journal	Journal of Real Estate Literature
Volume	29
Issue number	2
Early online date	13 Dec 2021
DOIs	https://doi.org/10.1080/09277544.2021.2006876
Publication status	Published - 2021

Bibliographical note

Acknowledgement
We thank CBRE Econometric Advisors for provision of most of the data used for this study. Open access via T&F agreement.

UN SDGs

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

SDG 8 Decent Work and Economic Growth

Keywords

Natural Vacancy Rate
Natural Rate of Unemployment
Office Markets

Access to Document

10.1080/09277544.2021.2006876Licence: CC BY-NC-ND

Black_etal_JREL_Adjustments_in_the_VOR
© 2021 The Author(s). Published with license by Taylor & Francis Group, LLC. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way.
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Cite this

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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 rate of unemployment (NRU) and the natural vacancy rate (NVR) 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 variation.",

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author = "Angela Black and Steven Devaney and Hendershott, \{Patric Henry\} and MacGregor, \{Bryan D.\}",

note = "Acknowledgement We thank CBRE Econometric Advisors for provision of most of the data used for this study. Open access via T\&F agreement.",

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doi = "10.1080/09277544.2021.2006876",

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AU - Hendershott, Patric Henry

AU - MacGregor, Bryan D.

N1 - Acknowledgement We thank CBRE Econometric Advisors for provision of most of the data used for this study. Open access via T&F agreement.

PY - 2021

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N2 - Large similarities exist between the labor and real estate space markets. The natural rate of unemployment (NRU) and the natural vacancy rate (NVR) 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 variation.

AB - Large similarities exist between the labor and real estate space markets. The natural rate of unemployment (NRU) and the natural vacancy rate (NVR) 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 variation.

KW - Natural Vacancy Rate

KW - Natural Rate of Unemployment

KW - Office Markets

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ER -

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

Abstract

Bibliographical note

UN SDGs

Keywords

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