Pricing Location: A Case Study of the Munich Office Market

We present a hedonic price analysis of office rents in Munich, Germany, based on a data set of 46 buildings. Using three parameters - the distance to the city center 'Marienplatz', the distance to the Munich Airport and access to public transportation - we build a parsimonious model of the impact of location on office rents. After including structural features of the buildings, the explanatory power rises only slightly, given the homogenous structure of the buildings included in the particular dataset. The regressions suggest that the model should be extended by some quantitative measures of neighborhood quality.