The effect of disruptive change on the spatial variation of commercial rental prices: The case of the COVID-19 pandemic

Abstract

This study examines spatial variations in the rental price of commercial premises and the factors that explain these variations in the event of a disruptive change such as the COVID-19 pandemic. A novelty of this work is the methodology used to determine the form and radius of influence on these prices (monotonically decreasing buffer with threshold) of heritage monuments as tourist attractions. The methodology is applied to a case study of the city of Granada, Spain, although it could be extrapolated to other cities displaying similar characteristics. The results indicate that commercial rental prices varied in a non-uniform manner throughout the city during the COVID-19 pandemic and that the main streets and prime locations were the most affected. The proposed methodology can be used to guide political and business decision-making in other disruptive situations.