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Urban Studies, Vol. 36, No. 2, 223-237 (1999)
DOI: 10.1080/0042098993574
© 1999 Urban Studies Journal Limited

Local Commercial and Industrial Rental Trends and Property Market Constraints

Colin Jones

Department of Building, Engineering and Surveying, Heriot-Watt University, Edinburgh EH14 4AS, UK, C.A.Jones{at}hw.ac.uk

Allison Orr

Department of Building, Engineering and Surveying, Heriot-Watt University, Edinburgh EH14 4AS, UK, A.M.Orr{at}hw.ac.uk

The paper assesses the differential impact of property market constraints on the long-run rental trends in each of the commercial and industrial property market sectors. The perceived view that supply constraints are very inelastic in the retail sector, less so for offices and elastic for industrial properties is reconsidered. A series of hypotheses are derived and tested by an analysis of variance technique which decomposes rental change into local and national components. The paper concludes that changes in the pattern of spatial activity and specific property market processes have resculptured the nature of supply constraints. The result is that the spectrum of supply elasticities has narrowed.


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