Forecasting office rentals in Gaborone in the short and long term

Abstract

The purpose of the study was to forecast office rentals in the city of Gaborone, Botswana. A model was developed to assist in the evaluation of proposed investments and developments. The study was both qualitative and quantitative in nature. The sample was determined at 95% confidence level with a 5% margin of error and 40% chance that the picked respondents were dealing in offices. The data obtained from the 30 respondents was analysed using regression analysis models, Microsoft Excel and SPSS 16.0 package to determine the relationship between prosperity (GDP growth) and levels of rentals. The moving average method (MAM) of office rentals between 2008 and 2014 was used to derive the direction of rental values in the four office nodes in Gaborone. The findings indicate that rentals are expected to increase at various rates in the four areas under investigation. This study is the first of its kind in Botswana and should be useful to real estate professionals, financial institutions, tenants and academics.

Office Building Rental Prediction Model Based on Locational Determinants

“…Due to strong rivalry and a lack of rental options, rental prices frequently increase in highly sought-after CBD areas with little available space (Ojok, 2018). The availability of properties typically rises as one travel farther from the CBD, providing a wider range of options and possibly lower rental rates (Kampamba & Cloete, 2015).The multifaceted exploration of CBD factors in previous research has unfurled an opulent tapestry of urban grandeur, punctuated by the resounding crescendo of commercial allure. For instance, revelation from Bera (2019) signifies that distance to CBD significantly impact the office rentals by 3.45 cent when distance increases.…”