Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330154 
Year of Publication: 
2025
Citation: 
[Journal:] Review of Income and Wealth [ISSN:] 1475-4991 [Volume:] 71 [Issue:] 4 [Article No.:] e70036 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2025
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
We develop a statistical‐methodological framework for a set of core commercial real estate market indicators, which consists of a market price index, a gross rent index, and a net rental yield index, as well as a vacancy rate. We argue that the indicators should be (macro‐)consistent, meaning that the asset valuation relation between the market price, rental income, yield, and vacant space of an individual property carries over to the macro indicators. In case of a bottom‐up compilation of all indicators, macro‐consistency is met if (1) target universes are common, (2) the granular data source is complete, and (3) price and rental yield indices are weighted with capital value shares while the rent index and the aggregate vacancy rate are weighted by rental income shares. We exemplify the established statistical‐methodological framework by compiling a consistent set of annual indicators of the German office market using appraisal data from a real estate consulting company.
Subjects: 
price index
rent index
rental yield index
vacancy rate
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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