An Empirical Study on the Characteristics and Determinants of Maintenance Fee for Prime Office Building in Seoul

The purpose of this study is to identify characteristics and determinants for maintenance fees paid with rent from the complex perspective costs profits in domestic prime office rental markets. analysis targeted buildings Seoul dealt 86 time-series data 1Q 2000 2Q 2021 on a quarterly basis. In order empirically testify, methodology adopted both Autoregressive Distributed Lag (ARDL) Error- Correction Model (ARDL-ECM). main findings are briefly summarized as follows: First, long-term equilibrium relationship between consumer prices remains, which suggests that actual account large portion by tenant. Second, results ARDL-ECM model show have positive effect, while vacancy rate negative one, means can fluctuate light Third, discount rates rent-free seem be statistically verified key factors than others because they effect increase fees. conclusion, useful figure out nature anticipate earnings markets future.