Modeling Space Market Dynamics: An Illustration Using Panel Data for US Retail

Patric Henry Hendershott; Maarten Jennen; Bryan Duncan MacGregor

doi:10.1007/s11146-013-9426-z

Modeling Space Market Dynamics: An Illustration Using Panel Data for US Retail

Patric Henry Hendershott, Maarten Jennen, Bryan Duncan MacGregor^* (Corresponding Author)

^*Corresponding author for this work

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

13 Citations (Scopus)

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Abstract

Real estate research has a long and extensive history of analyzing space market dynamics. Nonetheless, two areas have been under researched. Regional panels of data have been rarely analyzed. Moreover, due to data constraints, the retail market has been studied much less than other market segments.
This paper addresses both of these topics through an analysis of Metropolitan Statistical Area (MSA) level panel data. Our study covers almost three decades of annual retail data for 11 of the largest MSAs of the United States. We estimate a long run rent model and use Error Correction Models for short run rent, vacancy and supply adjustments. We test for differences in local market behavior in both the long run equilibrium relationships and in the short run adjustment processes. We identify two groups of similar markets.

Original language	English
Pages (from-to)	659-687
Number of pages	29
Journal	The Journal of Real Estate Finance and Economics
Volume	47
Issue number	4
Early online date	8 Jun 2013
DOIs	https://doi.org/10.1007/s11146-013-9426-z
Publication status	Published - Nov 2013

Bibliographical note

The authors gratefully acknowledge the generous data support that was offered by
CBRE Econometric Advisors (CBRE EA), formerly Torto Wheaton Research, in this project. An earlier version was presented at the Annual AREUEA 2010 Meetings. Joint Asian Real Estate Society and American Real Estate and Urban Economics Association International Conference, Korea

Keywords

Retail space market
Panel data
Error correction model

UN SDGs

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

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Modeling_Space_Market_dynamics
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Cite this

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abstract = "Real estate research has a long and extensive history of analyzing space market dynamics. Nonetheless, two areas have been under researched. Regional panels of data have been rarely analyzed. Moreover, due to data constraints, the retail market has been studied much less than other market segments. This paper addresses both of these topics through an analysis of Metropolitan Statistical Area (MSA) level panel data. Our study covers almost three decades of annual retail data for 11 of the largest MSAs of the United States. We estimate a long run rent model and use Error Correction Models for short run rent, vacancy and supply adjustments. We test for differences in local market behavior in both the long run equilibrium relationships and in the short run adjustment processes. We identify two groups of similar markets.",

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Modeling Space Market Dynamics: An Illustration Using Panel Data for US Retail

Abstract

Bibliographical note

Keywords

UN SDGs

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