After IMF bailout in 1997, due to changes in real estate market, the office buildings have been recognized to maximize the investment return and thus many researchers have bee n studying on the measure to raise profitability of office buildings. There...
After IMF bailout in 1997, due to changes in real estate market, the office buildings have been recognized to maximize the investment return and thus many researchers have bee n studying on the measure to raise profitability of office buildings. There are, however, insufficient data and research on management expense which is one of the factors determining the income yield rate of office buildings. This study is intended to develop a pricing model for office building management expense utilizing selected determinants based on previous studies and experiences and to statistically verify field workers` perception drawn from their own experiences. According to the multiple linear regression analysis, building management expense is raised by KRW17,332,200 and KRW128,041 by increasing one unit of management personnel and electric capacity, respectively. The management expense is also raised by KRW409 per year after construction.