Hedonic Analysis of Office Space Rent

Abstract

This paper presents the hedonic analysis of office space rent in the Greater Toronto area of Canada. The effects of accessibility, quality, location, and market conditions on rent are explored. Data indicate a high degree of spatial heterogeneity and clustering effects. Spatial analysis techniques are incorporated within the hedonic framework to capture these effects. Results indicate that access to transport infrastructure, distance from the central business district, and vacancy rate are significant in explaining variation in the rent.