The research of the effect of location on commercial real estate rents: The example of Aydın Adnan Menderes boulevard

Numerous factors such as physical, environmental and social etc. have affected on the value of a real estate. The main purpose of this study is to reveal the effect of climatic characteristics on the rental value of commercial real estates. That's why differences between the rental prices of commercial real estate in selected region were tried to be determined with to the sun-temperature factor which under location parameter. The research area is within the borders of Efeler municipality of Aydın province and it is located on the region called Adnan Menderes Boulevard. A total of 34 shops were included in the study, 17 of which were located on the west of the boulevard which are exposed to early morning sun and 17 of them on the east of the boulevard which are exposed to midday sun. Mann Whitney-U test and Multiple Linear Regression were used for the statistical analysis. The obtained data were analyzed using SPSS 25.0 statistical package program. According to the obtained data, the difference between the location of the shops on the boulevard and the annual rental prices per square meter was found statistically significant. The annual rental prices per square meter of the shops which located west of the boulevard are 2.10 times higher than in the east of the boulevard. The effect of location on commercial real estate rental prices was examined by Multiple Linear Regression analysis. As a conclusion, it has been determined that the location (sun-temperature) has an impact on commercial real estate rental prices for selected region.