Commercial real estate development and valuation in the Netherlands

In the past three decades, financial deregulation, or the process of removing governmental rules controlling the way that financial organizations operate, has facilitated interconnections between commercial real estate markets, the financial sector and national economic markets. As a result, commercial real estate has become an important ‘financial’ asset in the investment portfolios of both national and international investors. In this thesis I analyse different key aspects of the real estate market, including commercial real estate development, prices and locations in an era of financial deregulation and innovation. The first study shows that commercial and residential real estate developments complement each other in the long run. In the second study, I show the impact of credit availability on commercial real estate asset prices. I furthermore, show that investors are willing to pay a market liquidity premium. The results also show that investors accept a lower capitalization rate for office building associated with agglomeration economies. Finally, our results provide new empirical evidence on the premium that tenants are willing to pay for retail locations associated with tourism. The findings in this thesis help our understanding of various commercial real estate topics.