Analyzing Municipal Characteristics on Different Types of Vacancy Rates in the Netherlands

Abstract

Over the last few years, the percentage of vacant shops has fluctuated significantly in the Netherlands. After COVID-19, the number of vacant shops seemed to decrease for an extended period, but since the first quarter of 2024, it has started to rise again. To gain a better understanding of how vacancy occurs, this thesis analyzes the association between municipal characteristics and retail vacancy rates in the Netherlands. Data from Colliers and the Central Bureau of Statistics (CBS) is used to obtain information on retail vacancies and municipal characteristics. A Panel Generalized Linear Model (PGLM) is conducted with information from 2015 to 2022, with frictional, long-term, and structural retail vacancy rates as the dependent variables. The results of the model show that higher incomes and urban areas are positively associated with frictional vacancy, while higher population density correlates positively with long-term vacancy. Structural vacancy is negatively associated with higher income and population density.