Two variables in the model are used to explore the relationship between clusters of
industrial and service firms and location selection of warehouses in the Istanbul metropolitan
area. It is known that the services sector is dominant in central districts in the Istanbul
metropolitan area (Berkoz & Turk, 2008). However, in central districts, vacant land can be
hard to find and rents are very high. Therefore, these areas cannot be preferred for the
location site of warehouses. On the other hand, in suburban districts, the share of industry
firms is high. In these districts, to find vacant land can be easy and rents can be low. Therefore,
these areas can be preferred for the location site of warehouses by investors in Istanbul.
Considering the huge differences in the size of urban districts, clusters can be
represented by variables such as the density of industrial and services sector firms in
the urban districts. Cluster is represented by two explanatory variables in the model.
These are DenIndust and DenService (Table 2). As areas where firms in the industrial
sector are concentrated are expected to have a positive “+” effect for the location selection