Archive for Commercial property market

The mixed effects of mixed land use

The mixed effects of mixed land use

In recent decades, the concept of mixed land use (MLU) has been hailed by urban planners for diminishing the demand for car transport and improving the vitality of urban neighbourhoods. My thesis attempts to better understand how diversity affects the value of land in an urban area. The findings indicate that in general firms dislike mixing with other land uses within the same building while preferring to locate on a mixed street. This suggests that solely from a producer’s perspective, horizontal mixing (on the street) is preferred to vertical mixing (within a building).

Continue reading →

Are big-box stores emptying the city centre?

Are big-box stores emptying the city centre?

In recent years, many governments have adopted restrictive policies in response to the opening of big-box supermarkets. The economic consequences of the opening up of these new supermarkets became an important policy concern in most countries. A recent study shows that after the first big-box opening, between 20 and 30% of the grocery stores in the area disappear, offering clear evidence that city centres are losing part of their economic activity. However, when focusing on other retailers, the results also indicate that most of the empty commercial premises are taken by other type of small retailers. Hence, big-box store opening is a big threat to grocery stores, making them shut down after the opening, but it does not seem to be the case for the city centre’s activity in general.

Continue reading →

London’s Congestion Charge and its Effects on Office Rents

London’s Congestion Charge and its Effects on Office Rents

Modern cities enjoy many benefits connected to dense population and proximity of firms, but also face negative effects of agglomeration. In an urban context, external effects of traffic like noise and air pollution, or traffic congestion are some of the most significant issues for policy makers. In theory, congestion charging leads to the situation that everyone pays for the costs their trip imposes on others. London is one of the most famous examples of a large city introducing an inner city congestion zone. The policy required a strong political effort and met resistance from the public and the commercial sector inside the congestion zone. But does this resistance makes sense? Have office locations in the congestion charge zone become more or less attractive due to the implementation of the congestion charge?

Continue reading →

Office vacancies in the Netherlands: Alternative workplace strategies and the role of railway stations

Office vacancies in the Netherlands: Alternative workplace strategies and the role of railway stations

In 2013, about 15 percent of the offices in the Netherlands were vacant. However, this share varies considerably over space. In Amsterdam, the vacancy rate was 18 percent, while in other cities like Wageningen, the vacancy rate was only a few percent. Can these huge spatial differences in office vacancy rates be explained by upcoming alternative workplace strategies (‘Het Nieuwe Werken’ in Dutch)?

Continue reading →

Multinationals and the local economy: Implications for the Dutch ‘Topsectoren’ Policy

Multinationals and the local economy: Implications for the Dutch ‘Topsectoren’ Policy

The Dutch government has the aim to invest substantially in industrial sectors which have a comparative advantage, are relatively competitive and are internationally oriented. More than half a billion euro will be invested in nine ‘topsectoren’, including horticulture, life sciences and health, high-tech industries, and…

Continue reading →

Why do shops cluster? Spatial competition and agglomeration in the Netherlands

Why do shops cluster? Spatial competition and agglomeration in the Netherlands

Retail markets constitute a large fraction of the economies of most modern economies and facilitate the distribution of final goods and services to consumers. It seems that in general retail activities are clustered in city centres and secondary shopping centres. Does clustering of retailers imply larger profits or is this merely a result of urban planning? The master’s thesis Spatial Competition vs Spatial Agglomeration identifies and estimates the effect of being located close to other retailers of the same type on how much retailers pay for shopping space.

Continue reading →

The economics of skyscrapers

The economics of skyscrapers

7 out of 10 tallest buildings in the Netherlands are constructed after 2000, suggesting that skyscrapers become an increasingly common sight in Dutch cities. And the Netherlands isn’t alone. According to Council on Tall Buildings and Urban Habitat, there were 602 buildings higher than 200 metres around the world in Spring 2011, compared with 258 in 2000 and just 146 a decade before.

Continue reading →

The internal structure of cities: the economics of agglomeration, amenities and accessibility

The internal structure of cities: the economics of agglomeration, amenities and accessibility

[this is the summary of my dissertation; click here for the Dutch summary]   Introduction We have seen a vast increase in the number of people residing in urbanised areas in the last two centuries. It rose from about 7.5 percent in 1800 to more…

Continue reading →

Firm location choice and cities

Firm location choice and cities

We have seen a vast increase in the number of people residing in urbanised areas in the last two centuries. It rose from about 7.5 percent in 1800 to more than 50 percent nowadays. The number of urban megapolises is steadily rising: cities like New…

Continue reading →