Property analysts and researchers have a fundamental requirement for reliable property market data. Historically, data on the commercial and industrial property market are weak, although a number of property indices have now been published for 20 years. Considerable debate has arisen as to the appropriateness of these data for meaningful and reliable econometric analysis. A particular problem is the existence of serial correlation. This paper considers the form and the nature of spatial data and examines the implications for their interpretation and analysis. The primary concern is with rent and yield data with a particular focus on those derived from valuations. It is concluded that the use of valuation data does not appear to be a constraint or the source of serial correlation. In addition, its existence parallels that found in other economic time series data of longer standing. A possible solution is the disaggregation of the data to the local level, which may reduce the smoothing induced by aggregation.
Journal of Property Valuation and Investment – Emerald Publishing
Published: Dec 1, 1998
Keywords: Commercial property; Space planning; Valuation