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. © Emerald Group Publishing Limited.
|Number of pages||13|
|Journal||Journal of Property Investment and Finance|
|Publication status||Published - 2005|
- Industrial property
- Property finance
- Socio-economic regions