• Journal of Cadastre & Land InformatiX
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• v.45 no.2
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• pp.217-235
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• 2015

The study has analyzed the determinants of retail rents for the franchised coffee shop with the Multi-Regression analysis in Seoul. Central place, agglomeration, and demand-externality theories provide the basis for empirical models. The data used in this study consisted of 2,000 retail units in Seoul. As the results, the results show that coffee shop of retail sales per $3.3m^2$ and characteristic of retail trade-areas, and characteristic of coffee shop affects on the coffee shop's rents per $3.3m^2$. Coffee Shop's sales are the major determinant of coffee shop's rents. Also, coffee shop's goodwill per $3.3m^2$ and rental bond per $3.3m^2$ are positively correlated with a coffee shop's rents. Additionally, number of wholesale company and manufacturers in the retail trade-areas influences coffee shop's rent per $3.3m^2$. In summary, the study shows that coffee shop's brand identity, location and retail mix in the retail trade areas affects a coffee shop's rent per $3.3m^2$.

• 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.