This study analyzes the determining factors of rental rate - the primary income source of the office buildings, focused in Seoul city area and proves the importance of management process (professional management) among all those factors. This also int...
This study analyzes the determining factors of rental rate - the primary income source of the office buildings, focused in Seoul city area and proves the importance of management process (professional management) among all those factors. This also intends to analyze what factors are used to determine the proved important management process.
It draws several factors affecting the decision of rental rate, through the analyzed results from the three Multiple Regression Analysis models. It proves that the most important factor is the management process and that professional management rather than self management is more effective in increasing office rental rate.
Based on this, it analyzes how the proven management process(professional management) is determined by what factors, by conducting Logistic Regression Analysis. It identifies that gross area, ages of building, ownership entity, number of elevators, the lease exchange rate and parking space are important factors of determining management process. That is to say, there are high odds of selecting over self management process. That is to say, there are high odds of selecting over self management with bigger gross area, corporate of selecting self management over professional management with more ages of building and high the lease exchange rate, which are negative factors.