What drives warehouse prices? Estimating a spatial hedonic warehouse pricing model in Belo Horizonte, Brazil

This paper explores the determinants of warehouse sale prices in Belo Horizonte, Brazil, by estimating a spatial hedonic pricing model (HPM). HPMs are based on the understanding that the value of one property is the outcome of its characteristics, location, and the vicinity in which the property is located. In this paper, we estimated an HPM and identified the influential factors on the sale prices of logistics facilities in Belo Horizonte (Brazil). Results show that proximity to arterial streets, high-hierarchy roads, and the city center positively affect prices. Additionally, the commercial diversity in the city center explains the demand for small warehouses. The concentration of warehouses in areas not classified as suitable economic zones suggests deficiencies in urban planning. The findings indicate that aligning the supply of logistics areas with demand could reduce the dispersion of facilities, lower acquisition costs, and increase profitability for logistics companies, benefiting the city's economy.