Assessing the Impact of Distance to Logistical Nodes in Sweden : Are the Transaction Values of Logistic Properties Affected by Distance to Logistical Nodes?

Abstract: This study utilized hedonic pricing models and regression analysis to evaluate if, and to whatextent distance to certain logistics nodes impact the transactional value of warehouses andlogistics properties. The study is conducted in Sweden, using data collected from transactionsthat have been conducted in the three largest cities in Sweden between the years 2016 - 2022.The logistical nodes that are tested within the study are the biggest seaports, airports andhighways in the big city regions. Furthermore, the distances to the central business districts ineach respective city are included in the analysis as well. The distances are collected bymeasuring the shortest road travel routes using Google Maps. Aside from the aforementionedlocational attributes that were tested, physical variables and dummy variables were includedin the model to investigate their effect on the transaction value of the logistics properties.Furthermore, these were included to prove the robustness of the proposed models. The results from the study indicate that all the logistical nodes tested are significant for thevalue of the industrial properties. Proximity to seaport, central business district and highwayshave a negative gradient, indicating a higher value of the logistics properties if in proximityto these nodes. While the distance to the airport is significant for the value of the logisticsproperties, the proximity to the airport does not induce a higher transaction value. The studyconcluded that the distance to seaport had an effect of -0,50%, CBD -0,83%, Highway-0,62% and Airport 0,47% per kilometer of change. This study aims to contribute to theexpanding literature on the topic of optimal warehouse location and to inform propertyowners of what attributes to consider when constructing logistic properties.