Fill in the gaps using the words given below. Choose the right form ofthe
word. Think ofthe synonyms which can be used instead ofthem.
to prevent, equilibrium, to depend on, lack, to require, to include, to engage,
available, to characterise, to adjust, to associate with
At any point in time, the real estate market may not be at demand-supply
1) ___because of frequent exogenous shocks and a number of inefficiencies
that 2)_____ demand, supply, and rents or prices to 3)_____quickly to these
shocks. These market inefficiencies 4)_____:
5)______of information: real estate is highly heterogeneous in terms of both
quality and locational attributes. Thus, timely market and project-specific
information 6)_____for the evaluation of specific transactions is rarely readily
7)_____and its collection is rather costly and time consuming. These
information inefficiencies force tenants and buyers to 8)＿ in lengthy
searches and prevent quick adjustment of demand to price changes.
- Construction lags: construction lags that last from several months to several years,
9)______＿ property type, prevent speedy adjustment of supply to demand
and price changes.
- Long-term leases: long-term leases, with terms ranging mostly from 3 to 10 years,
prevent speedy adjustment of existing rates (not rates 10)____new lease
transactions) to changes in supply and demand, and hamper timely adjustments of space consumption to changes in market rates (as reflected in the latest lease
transactions).
These inefficiencies 11)_______all property types, but at varying degrees. For
example, information inefficiencies are more severe in the retail and apartment
market, construction lags are longer in the office and retail market, and lease
contracts are much shorter in the case of apartments.