Gevel, van de, Anke, A.J.M. (2020) The association between the lease term and office rents in the Netherlands: A quantitative study. Master thesis.
|
Text
Master thesis_Anke van de Gevel_final.pdf Download (850kB) | Preview |
Abstract
Flexibility has become an important need for office space users, due to changes within organizations and changed IFRS-rules. There are not many studies regarding the impact of flexibility in the lease term on rents and the results of those studies are mixed. In this study, a hedonic price model is used to investigate the association between the lease term and office rents. An empirical analysis of 1,062 office lease contracts in the Netherlands in the period 2016-2019 shows that in general, there is an association between the lease term and office rents. However, when time and location are considered,the results show on the one hand, only in 2019 an association, and, on the other hand, differences between the core areas of the four largest functional urban areas in the Netherlands and locations outside this whole area. But when considering initial lease terms less than five years and initial lease terms of five years or more separately, there are no differences between those core areas and locations outside it anymore. Thus, there is an association between the lease term and office rents, which could depend on time and location, but because no (exogenous) shocks are taken into account, it is not clear whether the lease term has an impact on office rents or not. For real estate owners, the results provide insight into the relationship between the lease term and rental income. The findings are also relevant in an investment context, because lease terms and rents are important determinants of investment returns.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Daams, M.N. |
| Date Deposited: | 07 May 2020 10:30 |
| Last Modified: | 07 May 2020 10:30 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/3189 |
Actions (login required)
 |
View Item |