earticle

영어

This study empirically investigates the effects of retail property's attractiveness on retail rents in Seoul. The retail rents-attractiveness function represents population density and economic decay relationship. It employs a two stage model. In the first stage, attractiveness of retail property can be measured using the weight of monthly rents and deposit to the total rents in each retail trade area. The second stage uses the ordinary least squares (OLS) to test the relationship between retail rents and various attractive factors. The data used in this study includes consumer preference survey, retail rents, and retail property's characteristics of 50,020 retail shops in Seoul, Korea. The result shows that the residence of low-income people is negatively related to the weight of monthly rents to the total rents. Additionally, consumer perception to preference of retail properties, goodwill, housing with month-to-month rent and population density (market potential factors) have an influence on retail rents in Seoul.