Institutional differences in European metropolitan office market dynamics Ed Nozeman & Arno van der Vlist ERES,15-18 June 2011

Central issue Whether and to what degree differences in local markets relate to differences in institutions ?

` Research design Step 1 Review of the literature on institutions and office market behaviour. Step 2 Measuring the degree of differences in office market returns Step 3 Considering the interrelations between office market dynamics and institutions

Step 1 Defining institutions Related to Formal and informal rules Property rights Institutions of local governance of land ue, planning and development

Step 1 Establishing the impact on performance of real estate Three assumptions 1.Impact of taxes and costs on demand 2.Impact of transparency and efficiency on rate of adaptation 3.Impact of land use regulations on prices and risk

Step 2 Data and methodology 1.Finding data on stock, yields, uptake 2. Finding proxies for rules, property rights and land use regulation 3.Selecting the empirical model

Step 3 Results Distribution of yields

Uptake by yield Transparency by yield

The empirical model odelirical

Conclusions 1 Analysis not confirming all assumptions 2 Necessity for continued research

Questions ?