Analysis of rental prices for the office market in Oslo

Abstract

The main purpose of this paper is to examine the office rental prices in Oslo where there is little previous quantitative work. Norway is an open economy relying sincerely on import and export, where changes in global economic factors will have consequences for both the Norwegian economy and the local economy in Oslo. We find that the multivariate models outperform the univariate model and that the most important factors explaining the development of office rental prices are vacancy office space (-), GDP (+), construction costs (+) and the oil price (+). The findings of the first three factors are consistent with previous research on what determines fluctuations in office rental prices. No previous research links the connection between office rental prices and the oil price. The oil price has a significant impact in both our multivariate models indicating the importance of the oil price for the Norwegian economy and for the development in office rental prices.