Journal of Property Investment & Finance
Emerald Article: Inflation and rental change in industrial property: A multi-level analysis Catherine Jackson, Michael White
To cite this document: Catherine Jackson, Michael White, (2005),"Inflation and rental change in industrial property: A multi-level analysis", Journal of Property Investment & Finance, Vol. 23 Iss: 4 pp. 342 - 363 Permanent link to this document: http://dx.doi.org/10.1108/14635780510602417 Downloaded on: 02-11-2012 References: This document contains references to 41 other documents Citations: This document has been cited by 1 other documents To copy this document: firstname.lastname@example.org This document has been downloaded 1025 times since 2005. *
…show more content…
These studies are valuable to the real estate community, but there still remain signiﬁcant gaps. This paper aims to focus on two of these inter-related gaps. The interaction between inﬂation and rental change has been largely overlooked at all levels of data aggregation. Further, the relative importance of national factors, and regional and local factors, in rental determination has also been ignored. Design/methodology/approach – National and regional long-run time series models are estimated accounting for the impact of inﬂation on real rents, using approaches adopted in macro-economic consumption function analyses. The statistical validity of these models is conﬁrmed from co-integration tests. Local level spatio-temporal rental changes are then examined using the hierarchical method of cluster analysis. Findings – This paper ﬁnds that, at national and regional levels, inﬂation reduces real industrial rents.