FACTORS DRIVING OFFICE RENTAL PRICE DIFFERENCES BETWEEN STOCKHOLM AND GOTHENBURG BUSINESS DISTRICTS

Sammanfattning: This report investigates what the main price drivers are for commercial real estate rentals in Stockholm and Gothenburg. The mathematical method applied in this thesis is multiple linear regression and statistical analysis. The models are built from data provided by Datscha, a commercial market information provider. The data sets contains 922 observations across 9 different metrics from 2019. The response variable used to explain the price drivers is taxated monthly rental. The most significant driving variables common to all three final models where market value, location, and taxated value. These results align with current macroeconomic theory; revenue streams stand in direct proportion to underlying asset, i.e market value. Furthermore, location stands out as significant due to its attractiveness to all interacting entities. The models constructed had satisfying predictabilty, with R2-values ranging from 0.725 − 0.896.