Evaluating the Functional Utility Characteristics of Office Buildings A Case Study of the Office Market in Ankara, Turkey

We apply the hedonic approach to the office property in Ankara and examine office rent determinants and their effects on rental variations. A hedonic regression model is utilized for the estimation of rent indices by using cross-sectional data including 251 office units in Ankara. Two different mode...

Full description

Saved in:
Bibliographic Details
Published inJournal of real estate literature Vol. 21; no. 1; pp. 79 - 104
Main Authors Ustaoglu, Eda, Türel, Ali, Güzel, Alper
Format Journal Article
LanguageEnglish
Published American Real Estate Society 01.01.2013
Subjects
Apartment buildings
Corporate real estate
International Articles
Leases
Market prices
Office buildings
Office landscaping
Office parks
Offices
Rental property
Residential buildings
Online AccessGet full text

Cover

More Information
Summary:We apply the hedonic approach to the office property in Ankara and examine office rent determinants and their effects on rental variations. A hedonic regression model is utilized for the estimation of rent indices by using cross-sectional data including 251 office units in Ankara. Two different models were constructed in order to identify and evaluate the impact of location on the rental variations. The results identify the attributes (i.e., existence of a CPI escalation in the lease and vertical location of the office unit in the building) as proxies for the locational characteristics. Findings also suggest that locational characteristics have the greatest effect on the rental prices of the office units. The results of non-nested tests support the model incorporating locational attributes. Overall, the locational characteristics explain the spatial rent variations of the office property in Ankara to a large extent.
ISSN:0927-7544
1573-8809
DOI:10.1080/10835547.2013.12090353