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Spatial Variation in Office Rents within the Atlanta Region

Policy Research Center and Department of Economics, School of Policy Studies, Georgia State University, 35 Broad Street, Atlanta GA 30303, USA, prccrb{at}langate.gsu.edu

Keith R. Ihlanfeldt

Policy Research Center and Department of Economics, School of Policy Studies, Georgia State University, 35 Broad Street, Atlanta GA 30303, USA, prckri{at}langate.gsu.edu

David R. Bowes

Policy Research Center and Department of Economics, School of Policy Studies, Georgia State University, 35 Broad Street, Atlanta GA 30303, USA, prcdrb{at}langate.gsu.edu

Hedonic office rent models are estimated using data for Atlanta that span the years 1990-96. Controlling for typical building characteristics and lease terms, we find that variables measuring locational differences in wage rates, transport rates and proximity to concentrations of support services and office workers play an important role in explaining spatial variation in office rents. No evidence is found in support of the hypothesis that technological advances in telecommunications have diminished the role played by face-to-face agglomeration economies in determining the intra-metropolitan location of office firms.

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