Impact of Different Economic Areas on Yield Rates in the V4’s Capitals’ Office Markets

Abstract The aim of the article is twofold. Its first goal is to identify the primary economic areas generating determinants that cause fluctuations of yield rates in the office markets in Bratislava, Budapest, Prague and Warsaw. To achieve this, four sets of potential determinants were predefined: the National, the Visegrád Group, the European Monetary Union, and the USA. The second goal of the study is to verify potential asymmetric dependencies that impact the yield rates. The study was conducted with a use of the autoregressive distributed lag model (ARDL) and its nonlinear equivalent (NARDL). The main conclusion of the study is that the four office markets do not follow a homogenous pattern when it comes to determinants of the yield rates. In accordance with this, variables of different economic areas best fit the ARDL model in each city — particularly inflation rates and interest rates on government bonds, which impacted the yield rates with the largest magnitude. Asymmetric relationships were also found between the yield rate and independent variables, especially the inflation rate, S&P stock index, and rent growth rate in Bratislava.