National economic trends, market size and city growth effects on European office rents

This paper extends existing research on European office markets. Using a time-series cross-sectional methodology it examines the influence on office rents in 22 European cities of national economic conditions, market size and measures of economic growth and change in the city economy over the period 1982-94. The results demonstrate the significance of national real GDP changes and real interest rates in explaining European real office rental movements. In contrast, market size and city growth effects appear to have an insignificant impact on office rents.