The spatial pattern of industrial rents and the role of distance
| Published date | 01 August 2005 |
| DOI | https://doi.org/10.1108/14635780510602408 |
| Date | 01 August 2005 |
| Pages | 329-341 |
| Author | Neil Dunse,Colin Jones,Jim Brown,William D. Fraser |
| Subject Matter | Property management & built environment |
The spatial pattern of industrial
rents and the role of distance
Neil Dunse
University of Aberdeen, Aberdeen, UK
Colin Jones
Heriot-Watt University, Edinburgh, UK
Jim Brown
St Andrews University, St Andrews, UK, and
William D. Fraser
University of Paisley, Paisley, UK
Abstract
Purpose – The objective of this paper is to re-appraise intra-urban rent models in the context of a
multi-nodal landscape. Primarily, the study focuses on the early work of Alonso and, more recently, Di
Pasquale and Wheaton. Although the latter use a more sophisticated approach, both models lead to
similar outputs, notably a declining rent gradient from the central business district (CBD). However,
throughout the twentieth century there has been a considerable process of urban industrial change. Di
Pasquale and Wheaton recognise this and argue that this has led to an almost flat industrial rent
gradient.
Design/methodology/approach – To assess the current impact on industrial rents a hedonic rent
regression model is applied which enables us to standardise for property characteristics.
Findings – The results support the hypothesis that the rent gradient from the CBD for a large city is
still downward-sloping, albeit very shallow. More interesting is the significance of proximity to
motorway junctions. The analysis supports the hypothesis of a multi-nodal rent surface. Proximity to
a motorway junction is the most important locational variable with a much steeper and negative
gradient than that to the CBD, albeit over a shorter distance.
Originality/value – These results imply that the draw of the CBD in terms of agglomeration
economies and its accessibility to labour for a city the size of Glasgow still remains, but its attractions
are much denuded with the development of a national motorway network.
Keywords Industrial property, Property finance,Socio-economic regions, Transportation
Paper type Research paper
Introduction
This paper reviews models of intra-urban rents (Alonso, 1964; Di Pasquale and
Wheaton, 1996) and re-appraises them in the context of a uni-nodal urban landscape in
which the assumptions underlying the bid rent curves for industrial property no longer
hold. By re-examining the structure of spatial revenues and costs alternative forms of
rent gradient will be postulated. This provides the framework for an examination of
the intra-urban spatial pattern of rents of industrial properties. To test for the role of
distance in the spatial variation of rents a hedonic regression model will be developed.
The focus of the empirical analysis is the city of Glasgow. The paper begins with an
appraisal of intra-urban industrial location theory. This is followed by a review of the
The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at
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Industrial rents
and distance
329
Received May 2004
Accepted December 2004
Journal of Property Investment &
Finance
Vol. 23 No. 4, 2005
pp. 329-341
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635780510602408
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