The in-transparency of the Amsterdam office market - The underlying incentive and effective rental price development

The in-transparency of the Amsterdam office market - The underlying incentive and effective rental price development: A quantitative research into the market dynamics and spatial segmentation of the Amsterdam office market over the period 2002-2012

Boots, R.C.

Koppels, P.W. (mentor)
Remoy, H. (mentor)
Rooij, R. (mentor)

Architecture and The Built Environment

Real Estate & Housing

Real Estate Economics

2014-05-23

The Amsterdam office market is characterized by large fluctuations in vacancy rates the last 10 years. Especially during the burst of the ICT-bubble (2001-2003), and in the period before and at the start of the economic recession (2007-2009), the vacancy rates increased a lot in the market. However, a ‘paradoxical situation’ occurred as the reported average rent levels do not demonstrate the sever price decrease one might expect. In contrast, the rent levels remain relatively stable in the market. One of the explanations for this occurrence is due to the provision of so-called lease-incentives by landlords instead of decreasing their rental price. As published rental prices are not corrected for these incentives, the rental price development remains on a relatively stable level. However, the true and underlying rental price corrected for incentives might differ from the published rental prices. In addition, the underlying rental price development might indicate a more realistic relation with the vacancy rate in the Amsterdam office market. This master thesis will research this phenomenon in the Amsterdam office market over the period 2002-2012.

incentives

http://resolver.tudelft.nl/uuid:0ca43e70-d85e-4b59-9e58-0e23d7be997b

Student theses

master thesis

(c) 2014 Boots, R.C.