Speaker：彭亮（Liang Peng）

Title：Space Market Matching as Jigsaw Puzzle Games: The Abundance Premium

Schedule: June 28, Wed 1:30-3:30 PM

Location: 诚明楼 (Chengming Hall）RM 315

 

Introduction: 彭亮，宾州州立大学斯米尔商学院教授，研究领域包括商业房地产，房地产指数，以及住宅市场，在Real Estate Economics、Journal of Real Estate Finance and Economics、Review of Economics and Statistics、Journal of Financial Markets 等期刊发表多篇学术论文，目前担任 Real Estate Economics、Journal of Real Estate Finance and Economics 和 Journal of Real Estate Research 副主编或编委。

 

Abstract: The matching between tenants and landlords in the space market is like jigsaw puzzle games: landlords compete for leases with different sizes and terms to fill their buildings. We hypothesize that landlords value a lease less if there are more similar leases in the market, so the tenant of the lease needs to pay higher rents. We call this the Abundance Premium. Leveraging a newly available dataset, we use 60,730 class A office leases in the largest five markets in the U.S. from 2010 to 2019 to propose and calculate an Abundance measure for each lease. We find strong evidence that lease Abundance significantly increases rents: when the Abundance increases by 100 basis points, the rent increases by $0.03 per square foot per month, holding constant other factors. This finding is robust across regions and the sample period. We also find that the Abundance Premium is stronger for leases with larger sizes and in larger buildings.