Can space syntax help us in understanding the intraurban office rent pattern? Accessibility and rents in downtown Stockholm

Enstroem, Rickard; Netzell, Olof

Can space syntax help us in understanding the intraurban office rent pattern? Accessibility and rents in downtown Stockholm

Author

Enstroem, Rickard

Netzell, Olof

Date

2008

Keywords

hedonic model, office space, rent, space syntax, Stockholm, translog

Abstract (summary)

The effect of accessibility upon rent is investigated for office properties located in Downtown Stockholm. Starting from the firm’s cost minimization problem, a translog hedonic model is derived. The results suggest the model has good predictive power in explaining the variation in the log of the rent. A negative rent gradient is obtained with a base approximately 90 m from the postulated focal point. It appears as if Space Syntax adds important information to the understanding of the intraurban office rent pattern.

Publication Information

Enstroem, R. & Netzell, O. (2008). Can space syntax help us in understanding the intraurban office rent pattern? Accessibility and rents in downtown Stockholm. Journal of Real Estate Finance and Economics, 36(3), 289–305. doi:10.1007/s11146-007-9054-6