This study applies rent adjustment models for ten major European office markets. We capture long-run equilibrium relationships of demand an supply variables and their short-term corrections in a two equation error correction model. We test whether the local nature of office markets makes a model...

In this paper we use an error correction model for understanding the changes in real office rents for a panel of 15 U.S. MSA's over the period 1990-2007. We find that office rents in all cities react positively to a rise in office employment and lagged rent changes, while lagged deviations from...