Browsing by Subject "Offices"

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    Price and spatial distribution office rental in Madrid: a decision tree analysis
    (Pontificia Universidad Católica del Perú, 2021) Camacho, Maximo; Ramallo, Salvador; Ruiz, Manuel; Métodos Cuantitativos para la Economía y la Empresa
    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 out that the willingness to pay high rent in the center of Madrid is a feature of particular relevance to medium-sized offices. For diferent reasons, we also find out some office clusters located far from the city center with high rent for both large and small offices.