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Price and Spatial Distribution of Office Rental in Madrid: A Decision Tree Analysis.
- Source :
-
Economía (02544415) . 2021, Vol. 44 Issue 87, p20-40. 21p. - Publication Year :
- 2021
-
Abstract
- In this paper, we assess the drivers of office rental prices in the municipality of Madrid with a sample of 4,721 offices in March, 2020. The estimation was performed using the decision tree approach, which was built with a random forest algorithm. This technique allows us to capture the strong nonlinear component in the relation between price and its drivers, mainly geospatial location. Through a stratified analysis, we find out that the willingness to pay high rent in the center of Madrid is a feature of particular relevance to medium-sized offices. For different reasons, we also find out some office clusters located far from the city center with high rent for both large and small offices. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 02544415
- Volume :
- 44
- Issue :
- 87
- Database :
- Academic Search Index
- Journal :
- Economía (02544415)
- Publication Type :
- Academic Journal
- Accession number :
- 151016522
- Full Text :
- https://doi.org/10.18800/economia.202101.002