• Journal of Cadastre & Land InformatiX
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• v.44 no.2
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• pp.177-192
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• 2014

The factors that affect on the ratio of monthly rent to total rents in commercial real estate lease contract was empirically investigated. The theoretical basis for the research was location theory, retail trade-area analysis, bid rent, agglomeration theory, and demand externality theory. The data used in this study included information on goodwills per 3.3 square meters, deposit money per 3.3 square meters, retail rents per 3.3 square meters, and passing pedestrians' characteristics in 96 retail trade areas in South korea. As the results, using the hedonic price functions and multi-regression analysis, the independent variables does affect the ratio of monthly rent to total rents in the each retail trade area were goodwills per 3.3 square meters, deposit money per 3.3 square meters, retail rents per 3.3 square meters, and the number of Small Wholesale Retail Trade Firms at the level of nation. also, the results show goodwills per 3.3 square meters and the number of Small Wholesale Retail Trade Firms are important factors in determining the ratio of monthly rent to total rents in commercial real estate lease contract in seoul. In summary, not only the economic conditions in the retail trade area but also the passing pedestrian count should be considered to determine the ratio of monthly rent to total rents in commercial real estate lease contract.

• Journal of Cadastre & Land InformatiX
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• v.45 no.2
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• pp.191-201
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• 2015

There has been few researches on the variables that influence on goodwill of the store. The purpose of this study is to identify the determined variables which affect goodwill of the store in seoul empirically by examining the interaction between goodwill and risk sharing in the commercial lease contract. We have analyzed 1,463 retail unite of goodwill over August, 2015. A regression analysis model is constructed to test the significance of the variables on the goodwill per $m^2$ in Seoul. The results indicate that rent to total start-up cost of ratio and retail property characteristics variables explain a significant portion of the variability of goodwill. The results suggest that retail rents is comparatively more important than size of store. The study suggests that monthly rents to total start-up cost of ratio is the key variable affecting the goodwill of the store.

• Journal of Cadastre & Land InformatiX
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• v.44 no.1
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• pp.213-226
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• 2014

The objective of this paper is to investigate the factors determining the premium of coffee shops by using coffee-shop lease cases at main retail trade areas in Seoul. The focus is on analyzing that the coffee-shops' the sales, building, location and retail trade area characteristics affects the coffee shop's premium. The major findings are as follows. First, there is a high positive correlation between the premium and the sales, and the sales and the size of the shop are shown to be statistically significant variables in estimating the premium per $3.3m^2$. It means that the shop's sale is empirically important an independent variable in determining the premium and as the major costs in the process of starting the business. Second, the deposit money per $3.3m^2$ and public service officers in the retail areas are important in determining the premium. Third, the size of the shop have the effects on the premium per $3.3m^2$ negatively. In short, this study adopts the research hypothesis that retail trade area, location, building of the characteristics, which is located in the coffee shops have the effects on the premium.