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@article{ART001645395},
author={Min, Seonghun and Koh Sung Soo},
title={The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2012},
volume={72},
pages={63-77},
doi={10.15793/kspr.2012.72..004}

TY - JOUR
AU - Min, Seonghun
AU - Koh Sung Soo
TI - The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size
JO - The Korea Spatial Planning Review
PY - 2012
VL - 72
IS - null
PB - 국토연구원
SP - 63
EP - 77
SN - 1229-8638
AB - The natural vacancy rate is one of the key elements to understand the rent adjustment process, the study on the issue, however, has not been so active in Seoul office market because of the lack of time series data. This study establishes three models, 1) fixed value, 2) moving average and 3) optimal inventory, and analyzes rent adjustment process by office size using quarterly data from 2003 on Seoul office market. The empirical results suggest that the natural vacancy rate mechanism works differently by office size. In the large-sized office group fixed value model is more significant amid both fixed value and optimal inventory models are working. In the middle-sized office group all the three models work and are significant. In the small-sized office group, on the contrary, any model is not significant. That means the rent of large-sized office regresses to fixed target vacancy rate, the rent of middle-sized office moves actively clearing the excess vacancy rate between current vacancy rate and natural vacancy rate which is responding sensitively to the change of market variables, and the rent of small-sized office is not explained through the three models above.
KW - Natural Vacancy Rate;Excess Vacancy Rate;Rent Adjustment Process;Optimal Inventory;Office
DO - 10.15793/kspr.2012.72..004
ER -

Min, Seonghun and Koh Sung Soo. (2012). The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size. The Korea Spatial Planning Review, 72, 63-77.

Min, Seonghun and Koh Sung Soo. 2012, "The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size", The Korea Spatial Planning Review, vol.72, pp.63-77. Available from: doi:10.15793/kspr.2012.72..004

Min, Seonghun, Koh Sung Soo "The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size" The Korea Spatial Planning Review 72 pp.63-77 (2012) : 63.

Min, Seonghun, Koh Sung Soo. The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size. 2012; 72 63-77. Available from: doi:10.15793/kspr.2012.72..004

Min, Seonghun and Koh Sung Soo. "The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size" The Korea Spatial Planning Review 72(2012) : 63-77.doi: 10.15793/kspr.2012.72..004

Min, Seonghun; Koh Sung Soo. The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size. The Korea Spatial Planning Review, 72, 63-77. doi: 10.15793/kspr.2012.72..004

Min, Seonghun; Koh Sung Soo. The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size. The Korea Spatial Planning Review. 2012; 72 63-77. doi: 10.15793/kspr.2012.72..004

Min, Seonghun, Koh Sung Soo. The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size. 2012; 72 63-77. Available from: doi:10.15793/kspr.2012.72..004

Min, Seonghun and Koh Sung Soo. "The Rent Adjustment Process and the Natural Vacancy Rate of Office Building in Seoul: Difference in Office Size" The Korea Spatial Planning Review 72(2012) : 63-77.doi: 10.15793/kspr.2012.72..004