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Modeling the Spatial Dimensions of Warehouse Rent Determinants: A Case Study of Seoul Metropolitan Area, South Korea

Author

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  • Hyunwoo Lim

    () (Asia Pacific School of Logistics, INHA University, Incheon 22212, Korea)

  • Minyoung Park

    () (Asia Pacific School of Logistics, INHA University, Incheon 22212, Korea)

Abstract

The spatial mismatch between warehouse locations and urban freight demand mainly driven by logistics sprawl can have negative environmental impacts, due to the increase in average trucking distances. This study investigated the spatial dimension of warehouse rent determinants identifying the regional specifics of supply and demand of warehouse facilities and services. Based on the case of the Seoul Metropolitan Area in South Korea, spatial autoregressive regression (SAR) and mixed geographically weighted regression (MGWR) models were developed to explain the spatial stationary and non-stationary relationship between warehouse rent and the explanatory variables, including the transactional characteristics of the rental contracts, physical characteristics of the buildings, location factors, and various warehousing services. The MGWR results identified the distance to the nearest highway interchange, repackaging service, and built-in ramps as globally fixed variables and contract floor space, total building floor space, building age, and land price as locally varying variables. The results of this study allowed us to provide meaningful insights into the sustainable development of urban logistics facilities through a better understanding of the interaction between logistics activities, transportation infrastructure, and land use.

Suggested Citation

  • Hyunwoo Lim & Minyoung Park, 2019. "Modeling the Spatial Dimensions of Warehouse Rent Determinants: A Case Study of Seoul Metropolitan Area, South Korea," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-17, December.
  • Handle: RePEc:gam:jsusta:v:12:y:2019:i:1:p:259-:d:302775
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    References listed on IDEAS

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    Keywords

    Warehouse rent; sustainable urban logistics; hedonic price modeling; spatial autoregressive regression; mixed geographically weighted regression;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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