Office firms represent a large share of economic activities, especially in the sector of professional services. In general, firms will follow an evolutionary cycle comprising the dynamics of starting-up, finding a location to establish their business, growing or declining, relocating and going out of business. The underlying approach taken in this research project relies on the idea that the evolution of office firms is strongly influenced by the urban environment. Traditionally, the specific relationship between transportation and land use has been examined in the framework of aggregate integrated land use-transportation (LUTI) models. However, the field is moving toward a more disaggregate approach, based on concepts of micro simulation and agent-based models. These are built on behaviorally richer concepts for examining firm dynamics, such as firm demography. The aim of this research project is to contribute to this emerging field by developing an agent-based modeling approach to simulate the evolution of office firms in time and space. To this end, a set of statistical/econometric models is used to investigate the relationships between specific firm demographic processes and the urban environment. The research project contributes to the existing literature by focusing on office firm demography and related land use and transportation influences, exploring alternative approaches to model office firm dynamics empirically, and using very detailed nationwide data from The Netherlands
