Although retail properties are indispensable in everyday life and play a very important role in the economy and retail industries, there are few studies on retail property management in the field of real estate. There are several types of management f...
Although retail properties are indispensable in everyday life and play a very important role in the economy and retail industries, there are few studies on retail property management in the field of real estate. There are several types of management fee charging systems for retail property buildings. This study aims to investigate the factors affecting the choice between flat rate and usage-based charging system for retail property management by using Binary Logit Model. The empirical results show that the choice between flat rate and usage-based charging systems is influenced by region, building characteristics, facility characteristics, owner characteristics, and tenants` business types. In general, the possibility of using the flat rate charging system increases when the retail property is located in a big city such as capital areas and metropolitan areas. This is also the case when the retail property building is a larger and newer building with more facilities. The probability of choosing the usage-based charging system increases when the individual owners possess the retail property building and one is a sole owner. This study also finds the choice of management fee charging systems is influenced by tenants` business types. The likelihood of adopting the usage-based charging system increases when the tenant`s business type is one of the Retail Trade, Accommodation, Food Services. On the other hand, the adoption of the flat rate charging system increases when the tenant`s business type is an industry such as Wholesale Trade.