A correlational analysis of economic factors that model commercial real estate performance
by Fleming, Jennifer E., Ph.D., WALDEN UNIVERSITY, 2010, 166 pages; 3427796

Abstract:

The recent failure of major U.S. financial institutions has called attention to multiple gaps in understanding decision making in financial markets, their oversight and recovery efforts. Reestablishing the viability of real estate has been identified as a cornerstone for economic recovery; however, few market-specific models of real estate viability exist to guide recovery efforts. This descriptive case study was grounded in a conceptual framework that synthesized theories related to economic growth, interest rates and unemployment. Its purpose was to examine a major southern US metropolitan area that has incurred 3 decades of abandonment of commercial real estate (CRE) to identify consistent predictors of CRE viability that serves as the bedrock for regional economic stability. The research questions posed in the exploratory correlational study sought to establish a more detailed model of what motivates CRE occupancy within inner city communities during periods of economic downturn. Archival data including economic benchmarks, unemployment rates, interest rates, gross domestic product and CRE overall inventory and CRE vacancy rates were collected. Stepwise multiple linear regression was performed to assess the impact of the predictor variables on CRE inventory and vacancy rates. The results suggest that vacancy rates were significantly influenced by submarket membership, unemployment, GDP decline and location. The results of this study could help initiate positive social change by informing government and community leaders of the economic impact of structural inequalities of CRE market segments within a metropolitan area. This information can be used to help guide planning and prioritize government funding for programs that will increase tax base for revenue for schools and other local infrastructure that enhances the standard of living for residents.

 
AdviserWalter McCollum
SchoolWALDEN UNIVERSITY
SourceDAI/A 72-01, p. , Dec 2010
Source TypeDissertation
SubjectsFinance; Political Science; Urban planning
Publication Number3427796
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