The office-space valuation literature concentrates on office-building attributes, such as square footage, height, number of floors, perceived architectural quality and distance from business districts or transit stops. Real estate researchers combine central place theory with landmark proximity in an effort to explain the complex relationships underlying office-space pricing. Yet, existing models have been inconsistent in relating office-space rents to square footage, indicating the possibility of spatial autocorrelation among corporate economic activities. The dynamic behavior pattern of the commercial real-estate cycle signals the creative interaction of business firms in their locale. A system dynamics model describes the interaction of these relationships in a particular location, namely midtown Manhattan.The model incorporates a third-order cost function, central place theory and landmark externalities to describe the causal structure underlying the valuation of 103 office buildings in midtown Manhattan, from 1980 to the first quarter of 1990. To embody spatial autocorrelation among corporation economic activities, the model accounts for the migration of wealth controlling and wealth producing firms. The results reflect the complex interrelationships underlying prime office-space markets and place in perspective their long-term cycles as exemplified by the New York office market.

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Date created

• 1993

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

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f5ad87bb3e8247e3540ac1e44c6717f5

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Part of

d52b7bb9c69ffcb6558a9eb830eec657

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Part of

23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives