Comparative study on value determining factors of factory and logistics warehouse

Abstract

The manufacturing industry as a major sector for economic activity in Korea is of great importance, whereas its factories and logistics warehouses are of little interest to both investors and researchers as investment goods. The purpose of the study is to comparatively analyze industrial property, especially focusing on factories and logistics warehouses; there exists similarities and differences among industrial property depending on its type. In this study, a Hedonic Price Model is applied to examine the value factors of industrial properties. Empirical analysis is implemented with real transaction data samples of factories and logistics warehouses around Gyeong-gi Province, South Korea. The results show in most model that the factors which significantly affect property value are building age and ceiling height. Also, this study confirms that factors, such as road width and floor area, are significant variables contributing to industrial property value. This study provides useful data both for decision makers in the manufacturing industry to rent or buy industrial properties and for developers and government policy makers to plan to establish relevant policies.