Analysis of Posted Price as a Determinant of Office Rent

Abstract

Predicting expected office rent obtained from a land can be utilized for making investment decisions. Previous research showed that fluctuation of office rent differs in new and renewal contracts. In order to accurately predict office rent, paid rent which is an indicator of rental price in both contracts should be considered as an important determinant of office rent. In this research, posted price is used to calculate the paid rent and estimate the office rent by conducting multiple regression analysis. We present posted price is strongly correlated with rent and effective for prediction of rent.