A Study on the Determining Factors of Shopping District Management Fees - Based on the comparison between the GBD and the CBD -

Since 2018, due to the revision of the Commercial Building Lease Protection Act, the limit of claims for an increase in rent has been limited to 5%. When the lessor is unable to pass on various factors such as tax burden, loan interest burden, and inflation to the increase in rent, some of them are transferred in the name of management expenses, causing disputes with the tenant. In this study, the factors that determine the public management cost of a shopping mall were divided into Gangnam area and central area of Seoul for comparative analysis. As a result of the analysis, the higher the facility investment cost and the conversion deposit per unit area (㎡), the higher the management cost, the higher the management cost, and the higher the parking lot, the higher the management cost, and the conversion rate has a significant effect on the shopping mall management cost, but it can be seen that the positive (+) or negative (-) effect varies depending on the region. Based on the analysis results, it was found that facility investment costs borne by tenants have the greatest impact on shopping mall management costs, and cost factors such as sales or conversion deposits also have a significant impact on shopping mall management costs, confirming that part of the increase in rent was transferred to shopping mall management costs. Therefore, it is necessary to actively improve the system such as laws and regulations in the future so that the cost of rent is not passed on to management costs.

Authors

Publication Details

Journal
Journal of the Korea Real Estate Management Review
Published
2024-12-23
DOI
https://doi.org/10.37642/jkremr.2024.30.8
Primary Topic
Korean Urban and Social Studies
Type
article
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article

A Study on the Determining Factors of Shopping District Management Fees - Based on the comparison between the GBD and the CBD -

Jinhyeong Seo, Young-cheon Seo
Journal of the Korea Real Estate Management Review
Korean Urban and Social Studies
article

A Study on the Determining Factors of Shopping District Management Fees - Based on the comparison between the GBD and the CBD -

Jinhyeong Seo, Young-cheon Seo
article en

Abstract

Since 2018, due to the revision of the Commercial Building Lease Protection Act, the limit of claims for an increase in rent has been limited to 5%. When the lessor is unable to pass on various factors such as tax burden, loan interest burden, and inflation to the increase in rent, some of them are transferred in the name of management expenses, causing disputes with the tenant. In this study, the factors that determine the public management cost of a shopping mall were divided into Gangnam area and central area of Seoul for comparative analysis. As a result of the analysis, the higher the facility investment cost and the conversion deposit per unit area (㎡), the higher the management cost, the higher the management cost, and the higher the parking lot, the higher the management cost, and the conversion rate has a significant effect on the shopping mall management cost, but it can be seen that the positive (+) or negative (-) effect varies depending on the region. Based on the analysis results, it was found that facility investment costs borne by tenants have the greatest impact on shopping mall management costs, and cost factors such as sales or conversion deposits also have a significant impact on shopping mall management costs, confirming that part of the increase in rent was transferred to shopping mall management costs. Therefore, it is necessary to actively improve the system such as laws and regulations in the future so that the cost of rent is not passed on to management costs.

Journal of the Korea Real Estate Management ReviewVol. 30
Sustainable cities and communities
Openalex Percentile: Top 63%
Korean Urban and Social Studies
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