Socioeconomic dynamics and property rights regu- lation as driving forces of urban spatial development: the case of Vienna

Introduction In this paper we explain recent changes in urban structures and CBD functions in Vienna by entrepreneurial decisions to locate office buildings. The decisions to site office facilities are seen, in turn, as dependent on quantitative and qualitative demand for office space, and on the particular spatial conditions of the local office supply. The question we are dealing with in this paper is whether the recently observed pattern of location decisions may be explained by general (global) demand factors largely independent of the local economy in combination with the local institutional framework of the supply side. By looking more deeply into the two sides of the market we want to shed some light on one particular causal chain of urban structural development. The paper has five parts. After a brief discussion of the location-theoretical background (part 1) we describe the main factors driving office demand (part 2). The third part gives an overall picture of the local regulation of the market. The fourth part is empirical in nature and sums up the market developments of the Vienna office market in recent years. Finally, in the fifth part some suggestions are given how these developments could be guided towards a more balanced urban policy .