A study of the United States Internet Real Estate Office Market and a comparison of the Internet versus traditional markets in Boston/United States and London/United Kingdom (Massachusetts, England)

The Internet Real Estate Office Market (REOM) is an evolving information source about available office properties. The goal of this dissertation is to identify the behavior of the Internet REOM for leases/sales in U.S. states/cities and London/U.K. This behavior is examined by estimating the Internet penetration in U.S. states/cities, comparing the Internet listed with removed (transacted or taken off the market) property characteristics and the Internet versus traditional office market.; The data set consists of thousands of online properties across the U.S. and London/U.K. and hundreds of traditionally transacted properties in Boston and London during a six-month period. In addition data on local economic, crime and demographic conditions were collected. Also a survey was conducted to capture the views of real estate professionals about the Internet's impact on the transaction process. This entire data set was then analyzed using statistical and clustering analysis.; The distribution of the Internet penetration in REOM indicates that mere geographical proximity does not mean that states/cities share similar penetration. This distribution can be explained by grouping (clustering) of states/cities based on local socioeconomic conditions together with office market characteristics such as vacancy rates. The average Internet penetration of leases in REOM is estimated at 61% in cities and 62% in states; for sales it is 11% in cities and 12% in states. A comparison between listed and removed properties' rents/prices and square feet indicates no statistical difference between them in the majority of states/cities studied.; Comparing the Internet versus traditional REOM, the mean Internet lease-up/sales time is shorter. In addition, sizable but inexpensive properties for lease and small properties for sale are more likely to be transacted online in Boston. In London, however, there is no difference in the average size or rent of lease properties transacted online or traditionally, yet small and inexpensive properties for sale are more likely to be transacted online. Finally, a survey of real estate professionals in Boston and London indicates a decrease in the significance of transaction participants such as the broker. However, the impact on participants' earnings and the number of steps in the transaction process is limited.