New Research

Xymax New Contract Rent Index
A new index reflecting the actual office space market

Xymax Real Estate Institute has developed an index based on contract rent of office spaces. The index, named Xymax New Contract Rent Index, will be released online on a quarterly basis.

Office rents are important for the real estate industry because they are the source of revenue for property owners and investors as well as for those involved in the real estate business. Office rents are equally important for general companies too, because they are the cost paid for the place where companies do business. An analysis of office rents that appropriately reflects the market is very much needed. Developing such analysis, however, requires enormous volume of data and statistical processing, which may be obstacles to the development.

Xymax New Contract Rent Index is unique because:

  1. 1) It is based on contract rent from actual transaction data: not asking rent which most other rental indexes are based;
  2. 2) It is analyzed by the hedonic approach; therefore factors that influence the rent, such as gross floor area and age of the buildings, are adjusted and property-specific influences are removed; and
  3. 3) Changes of market structure are appropriately reflected through serial statistical processing.
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