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Examination of the real estate market risk and volatility : focusing on the U.S. office property

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dc.contributor.advisor William Wheaton. en_US
dc.contributor.author Kim, Hyun Jae en_US
dc.contributor.other Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. en_US
dc.coverage.spatial n-us--- en_US
dc.date.accessioned 2011-04-04T17:41:45Z
dc.date.available 2011-04-04T17:41:45Z
dc.date.copyright 2010 en_US
dc.date.issued 2010 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/62104
dc.description Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate , 2010. en_US
dc.description Cataloged from PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 56). en_US
dc.description.abstract The high risk and volatility in the current real estate market has sparked investor interest in understanding what determines real estate market volatility. This study examines the U.S. office markets' overall and decomposed volatilities in vacancy and revenue across 45 metropolitan areas from 1987 to 2010. The relationships of the volatilities with economic and physical market characteristics are also analyzed. The study examines five overall or decomposed market volatilities: volatility in vacancy, volatility in revenue, demand-oriented vacancy change volatility, occupancy-oriented revenue change, and covariance of occupancy rent change. The linear regression analyses are used to explain the movements of the volatilities with market determinants, which include market size, employment growth, jobs in specific industries, submarket structures and geography. This study finds that geographical land availability and employment growth are significantly important for predicting market volatilities. Market size does not affect the decomposed volatility, but it reduces overall vacancy change volatility. Moreover, submarket structure becomes more meaningful when the revenue change volatility is decomposed into occupancy and rent changes. This study gives developers some tools for strategic decision-making in office property development issues. en_US
dc.description.statementofresponsibility by Hyunjae Kim. en_US
dc.format.extent 56 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582 en_US
dc.subject Center for Real Estate. Program in Real Estate Development. en_US
dc.title Examination of the real estate market risk and volatility : focusing on the U.S. office property en_US
dc.type Thesis en_US
dc.description.degree S.M.in Real Estate Development en_US
dc.contributor.department Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. en_US
dc.identifier.oclc 707932517 en_US


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