Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246131 
Year of Publication: 
2019
Series/Report no.: 
Staff Memo No. 12/2019
Publisher: 
Norges Bank, Oslo
Abstract: 
Banks have substantial exposures to commercial real estate (CRE). Rental prices are important for CRE companies' debt-service capacity, which in turn affects the risk of future bank losses. In this paper, we estimate error correction models (ECMs) to determine the main drivers of office rents in Oslo and to detect deviations in rents from their estimated long-run equilibrium. We find that employment and stock of offices are important explanatory variables. Moreover, our results show that rents have followed their estimated equilibrium closely and have re-adjusted quickly in periods of deviation.
Subjects: 
Rental prices
commercial real estate
financial stability
JEL: 
C20
E30
R30
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-130-3
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Research Report
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