Price and spatial distribution of office rental in Madrid: a decision tree analysis
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 nonl...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Pontificia Universidad Católica del Perú
2021-10-01
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| Series: | Economía |
| Online Access: | https://revistas.pucp.edu.pe/index.php/economia/article/view/22227 |
| _version_ | 1798029214221336576 |
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| author | Manuel Ruiz Salvador Ramallo Máximo Camacho |
| author_facet | Manuel Ruiz Salvador Ramallo Máximo Camacho |
| author_sort | Manuel Ruiz |
| collection | DOAJ |
| description | 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 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 some office clusters located far from the city center with high rent for both large and small offices. |
| first_indexed | 2024-04-11T19:21:42Z |
| format | Article |
| id | doaj.art-06aa3e6ec3864be89fd0a668481615e0 |
| institution | Directory Open Access Journal |
| issn | 0254-4415 2304-4306 |
| language | English |
| last_indexed | 2024-04-11T19:21:42Z |
| publishDate | 2021-10-01 |
| publisher | Pontificia Universidad Católica del Perú |
| record_format | Article |
| series | Economía |
| spelling | doaj.art-06aa3e6ec3864be89fd0a668481615e02022-12-22T04:07:17ZengPontificia Universidad Católica del PerúEconomía0254-44152304-43062021-10-014487Price and spatial distribution of office rental in Madrid: a decision tree analysisManuel Ruiz0Salvador RamalloMáximo CamachoProfessorIn 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 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 some office clusters located far from the city center with high rent for both large and small offices.https://revistas.pucp.edu.pe/index.php/economia/article/view/22227 |
| spellingShingle | Manuel Ruiz Salvador Ramallo Máximo Camacho Price and spatial distribution of office rental in Madrid: a decision tree analysis Economía |
| title | Price and spatial distribution of office rental in Madrid: a decision tree analysis |
| title_full | Price and spatial distribution of office rental in Madrid: a decision tree analysis |
| title_fullStr | Price and spatial distribution of office rental in Madrid: a decision tree analysis |
| title_full_unstemmed | Price and spatial distribution of office rental in Madrid: a decision tree analysis |
| title_short | Price and spatial distribution of office rental in Madrid: a decision tree analysis |
| title_sort | price and spatial distribution of office rental in madrid a decision tree analysis |
| url | https://revistas.pucp.edu.pe/index.php/economia/article/view/22227 |
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