The space and capital markets are connected in the context of commercial real estate. This ties in with the Geltner Miller Commercial RE book but can be used on it's own.
Hi, thanks for this helpful video. For the shift in demand example: is there a specific reason why the overshooting short run reaction stops at price P once u determine the long run equilibrium? Our professor also stopped here with the (not equ line), but is there a specific reason for that? Many thanks, Concavity
The investors alternative investments I suppose. If the investors can get the same or higher yields with the same or lower risks somewhere else, they will much rather invest there. This would make the market see its investor move to new markets, forcing it to adjust to again become more attractive for investors. This is my guess at least.
The demand curve can shift to the left ("slide inward") for many reasons, for example, lower real income, migration (resulting in lower population). Decreasing demand (shift of the total curve, so that the demand side is willing to pay less per given stock in the square foot than before) is different than the increase - new real estate can be constructed quickly, but existing buildings won't be torn down because of lower demand, so the adaption here takes longer than in many other scenarios.
