Analysis of Demand Model in the Office Market in Tokyo CBD

Abstract

This paper examines whether there was any structural change of office demand in Tokyo CBD through the Bubble Economy, or not. At first we show lagged effects between rents and vacancy rate of the offices by the Almon polynomial lag model, and then we induce a demand structure, so as to identify structural difference between pre and post the bubble economy. We conclude that there was no a change of demand structure, but a significant change of potential demand level.