Determinants of an Office Real Estate Price

Various internal and external characteristics of office spaces and their affection on supply rental prices in Perm’s office real estate market are investigated in the current study. Building models with the ordinary least squares (OLS) method is based on assumption of hedonic pricing approach method which is fundamental principle in the relevant literature. Moreover, the geographically weighted regression (GWR) was also built what justified presence of the objects’ spatial non-stationarity. Clusterisation algorythm K-Means method was performed as well to divide office spaces in various clusters based on their relative distance to the central places in Perm. The most statistically significant determinants are an overall square feet of an office room, the building’s age and number of floors it has, the distance to the nearest public transport station and the distance to the nearest bank, an office being located in the central districts and the distance to the Perm’s Central Department Store,