Industrial Warehouse Rent Determinants in the Dallas/Fort Worth Area

This paper presents the first empirical analysis of the determinants of pooled variation in industrial warehouse rents. It examines industrial warehouse rents using data for seventeen quarterly periods in the Dallas/Fort Worth metroplex. M/PF Research Inc. provided the data. A random effects model is used to estimate the relationship between market rents for industrial properties and various independent variables. Rent per square foot is positively related to the number of grade high doors, and the annual change in net employment. Rent per square foot is negatively effected by ceiling height, percentage of office space, building age, and the presence of a sprinkler system. The results indicate that rents are significantly impacted by physical characteristics, location, and general market conditions. Additionally, there is evidence to suggest that the relationship between physical characteristics and rents is nonlinear.

The Chinese Housing Provident Fund

The Chinese government has embarked upon an effort to reduce the number of tenants living in publicly owned housing. This is a significant challenge for any government, but may be especially so for a country where private homeownership is a new option. Out of concern that many of its citizens could not afford to purchase their housing units, the Chinese government created the Housing Provident Fund. This program, which is similar to housing fund programs in other countries such as Thailand and Singapore, combines a 401(k)-like savings and retirement account with subsidized mortgage rates and price discounts to provide a mechanism through which an employee could save for, and eventually complete, a housing purchase.