Hedonic pricing models often don't take into account the cross-classified hierarchical nature of the office rental markets. This paper employs a cross-classified multilevel model (HCM2) to examine the impact that office characteristics, district and commercial zones have on rental prices in São Paulo. Using a sample of 277 properties from 15 districts cross-classified with 10 commercial zones, multilevel representativeness is found for the effects of the properties', districts' and zones' characteristics, considering the differentiation of mean prices in 2008.
office rental prices; hedonic prices; cross-classified multilevel models (HCM2); hierarchical linear models (HLM)
