Office Building Capitalization Rates: The Case of Downtown Chicago

Abstract

Office capitalization rates, Office asset markets,

The Determinants of Office Rents and Yields: The International Evidence

“…These findings reinforce the prior literature on the importance of a city's wealth and GDP, real interest rates and employment in the financial services sector on rents(Brounen and Jennen (2009b),Wit and Dijk (2003),Giussani, Hsia and Tsolacos (1993),Ke and White (2009),Sivitanidou and Sivitanides (1999),Mourouzi-Sivitandou (2002), andMcDonald andDermisi (2009)). …”

“…3 Examples of individual city empirical studies include Mills (1992) (Chicago), Sivitanidou (1995) (Los Angeles), Englund, Gunnelin, Hoesli and Soderberg (2004) (Stockholm), Oven and Pekdemir (2006) (Istanbul), Kim (2007) (Seoul), and Ke and White (2009) (Shanghai). 4 Examples of multiple cities analysis within the U.S. -include Sivitanidou and Sivitanides (1999), Mourouzi-Sivitandou (2002), Plazzi, Torous and Valkonov (2008), Brounen and Jennen (2009a), McDonald and Dermisi (2009), and Chervachidze and Wheaton (2011). 5 There does exist a small literature that examines the cross-sectional variation in the determinants of both rental and cap rates across countries (Giussani, Hsia and Tsolacos (1993) (Western Europe), Wit and Dijk (2003) (Europe, Asia and U.S.), and Brounen and Jennen (2009b) (Western Europe)).…”

Transaction-Based and Appraisal-Based Capitalization Rate Determinants

“…Several studies have documented the linkages between real estate cap rates and the stock market (Nourse, 1987;Evans, 1990;Ambrose & Nourse, 1993;Jud & Winkler, 1995;Sivitanidou & Sivitanides, 1999;Chen et al, 2004;Hendershott & MacGregor, 2005b;McDonald & Dermisi, 2009). In line with these studies, we incorporate the P/E from the stock market as a potential cap rate determinant.…”

Analysis of Factors Affecting the All Risk Yield: Case Study of Vilnius, Lithuanian Capital / Veiksnių, Darančių Įtaką Kapitalizacijos Normai, Analizė: Vilniaus – Lietuvos Sostinės Atvejis

“…Kapitalizacijos normos tyrimai paprastai skiriami jos pokyCiit per tam tikr^ laikotarpi analizei (McDonald, Dermisi 2008). Taip pat atliekami kapitalizacijos normos kaitos tyrimai nuo tam tiknt veiksniit, pvz., nekilnojamojo turto paskirties ar lokalizacijos (Ambrose, Nourse 1993).…”

“…P. Sivitanides ir R. Savitanidou (1996), studijuodami vidutinio dydzio biimt paskirties NT, nustaté, kad vakansijos norma turéjo teigiam^ efekt^ o biuro plotas -nei-giam^ efekt^ kapitalizacijos normai. J. F. MacDonald ir S. Dermisi (2008) nagrinéjo Cikagos miesto centre esanöiit 132 komercinés paskirties pastatii kapitalizacijos normas 1996-2007 m., atsizvelgdami i pardavimo kain^ pastato klasç (A ar B), nuomojam^plot% pastato amziit, bOklç ir kitas savybes. Nustatyta, kad reikSming^ poveiki kapitalizacijos normai turi pastato klasé, amzius, büklé.…”