Bargaining Strength and Property Class in the Office Market

Posted: 18 May 2006

See all articles by Peter F. Colwell

Peter F. Colwell

University of Illinois

Henry J. Munneke

University of Georgia - Department of Insurance, Legal Studies, Real Estate

Abstract

This paper examines the influence of bargaining power and property class on the prices of heterogeneous goods. Specifically, it explores the impact of buyer and seller characteristics on the transaction prices of office properties. The empirical model is based on the work of Harding, Rosenthal, and Sirmans (2003), which developed a method to distinguish between the impact of buyer and seller attributes on bargaining power and the choice of otherwise unidentified price effects (i.e., property class) in the context of hedonic price models. The data set contains information on transaction prices of office properties in Cook, DuPage, and Lake Counties, Illinois from 1995 to 1997. The results reveal systematic differences in bargaining power and property class for certain groups of buyers and sellers contained within the sample.

Suggested Citation

Colwell, Peter F. and Munneke, Henry J., Bargaining Strength and Property Class in the Office Market. Journal of Real Estate Finance and Economics, Vol. 33, No. 3, 2006, Available at SSRN: https://ssrn.com/abstract=902879

Peter F. Colwell (Contact Author)

University of Illinois ( email )

304B David Kinley Hall
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Champaign, IL 61820
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Henry J. Munneke

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6254
United States
(706) 542-0496 (Phone)
(706) 542-4295 (Fax)

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