The impact of COVID-19 on office space utilization and real-estate: a case study about teleworking in Israel as new normal

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael Naor ◽  
Gavriel David Pinto ◽  
Amir Israel Hakakian ◽  
Akiva Jacobs
Keyword(s):  
Real Estate ◽  
Social Distance ◽  
Ethnic Diversity ◽  
Real Estate Market ◽  
Employee Productivity ◽  
Content Type ◽  
Office Space ◽  
Google Search ◽  
The Impact

Purpose This study aims to investigate whether the shift to teleworking during COVID-19 pandemic is going to diminish the need to procure/rent extensive office space and how this emerging trend impacts the real-estate market in Israel. Design/methodology/approach The methodologies used in this study include triangulation of Google search engine, survey and post hoc case study analysis. Findings The analysis indicates a decline both in procuring office space and its price per square meter. Employee productivity while teleworking remains relatively high despite home distractions. Interestingly, the survey results forecast a continuous shift to hybrid work mode after the pandemic. Practical implications The study introduces the development of numerous innovative Israeli technologies to allow a gradual return to work in public places. Social implications As the coronavirus outburst, business sectors were forced by government regulations to change the way of employment extensively, specifically, teleworking has become an integral part of the routine to accommodate social distance. The study provides insights into the impact of teleworking on gender and ethnic diversity in the Israeli workplace. Originality/value Israel provides a unique bedrock for investigation because of its status as a start-up nation with both high skilled workforce and advanced information technology infrastructure. The study enlightens an Israeli perspective on how a small size country with a high-density population succeeds to deal with coronavirus by teleworking coupled with strict government enforcement of social distance.

scholarly journals The impact of renewable on-site energy production on property values

2020 ◽  
Vol 13 (3) ◽  
pp. 337-356 ◽  
Author(s):  
Niina Leskinen ◽  
Jussi Vimpari ◽  
Seppo Junnila
Keyword(s):  
Real Estate ◽  
Urban Areas ◽  
Energy Production ◽  
Real Estate Market ◽  
Content Type ◽  
Site Energy ◽  
Influencing Mechanism ◽  
Study Results ◽  
The Impact

Purpose Contrary to the traditional technology project perspective, real estate investors see building-specific renewable energy (on-site energy) investments as part of the property and as something affecting the property’s ability to produce a (net) cash flow. This paper aims to show the value-influencing mechanism of on-site energy production from a professional property investors’ perspective. Design/methodology/approach The value-influencing mechanism is presented with a case study of a prime logistics property located in the Helsinki metropolitan area, Finland. The case study results are compared with the results of a survey answered by over 70 property valuation professionals in the Finnish real estate market. Findings Current valuation practice supports the presented value-creation mechanism based on the capitalisation of the savings generated by a building’s own energy production. Valuation professionals see benefits beyond decreased operating expenses such as enhanced image and better saleability. However, valuers acted more conservatively than expected when transferring these additional benefits to the cash flows of the case property. Practical implications Because the savings in operating expenses can be capitalised into the property value, property investors should consider on-site energy production when the return of on-site energy exceeds the return of the property. This enhances the profitability of on-site energy, especially in urban areas with low initial yields. Originality/value This is the first research paper to open the value-influencing mechanism of on-site energy production from a professional property investors’ perspective in commercial properties and to confirm it from a market study.

scholarly journals Cap rates and risk: a spatial analysis of commercial real estate

2018 ◽  
Vol 35 (1) ◽  
pp. 25-43
Author(s):  
Florian Unbehaun ◽  
Franz Fuerst
Keyword(s):  
Real Estate ◽  
Risk Perceptions ◽  
Large Scale ◽  
Risk Premia ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Data Series ◽  
Large Set ◽  
Content Type ◽  
The Impact

Purpose This study aims to assess the impact of location on capitalization rates and risk premia. Design/methodology/approach Using a transaction-based data series for the five largest office markets in Germany from 2005 to 2015, regression analysis is performed to account for a large set of asset-level drivers such as location, age and size and time-varying macro-level drivers. Findings Location is found to be a key determinant of cap rates and risk premia. CBD locations are found to attract lower cap rates and lower risk premia in three of the five largest markets in Germany. Interestingly, this effect is not found in the non-CBD locations of these markets, suggesting that the lower perceived risk associated with these large markets is restricted to a relatively small area within these markets that are reputed to be safe investments. Research limitations/implications The findings imply that investors view properties in peripheral urban locations as imperfect substitutes for CBD properties. Further analysis also shows that these risk premia are not uniformly applied across real estate asset types. The CBD risk effect is particularly pronounced for office and retail assets, apparently considered “prime” investments within the central locations. Originality/value This is one of the first empirical studies of the risk implications of peripheral commercial real estate locations. It is also one of the first large-scale cap rate analyses of the German commercial real estate market. The results demonstrate that risk perceptions of investors have a distinct spatial dimension.

Foreign investment in Australian residential properties

2019 ◽  
Vol 12 (2) ◽  
pp. 166-180 ◽  
Author(s):  
Hassan F. Gholipour ◽  
Hooi Hooi Lean ◽  
Reza Tajaddini ◽  
Anh Khoi Pham
Keyword(s):  
Real Estate ◽  
Foreign Investment ◽  
House Prices ◽  
Real Estate Market ◽  
Housing Development ◽  
Housing Construction ◽  
Annual Data ◽  
Content Type ◽  
Residential Properties ◽  
The Impact

Purpose The purpose of this study is to examine the impact that foreign investment in existing houses and new housing development has on residential house prices and the growth of the housing construction sector. Design/methodology/approach The analysis is based on a panel cointegration method, estimated using annual data for all Australian states and territories spanning the period of 1990-2013. Findings The results indicate that increases in foreign investment in existing houses do not significantly lead to increases in house prices. On the other hand, a 10 per cent increase in foreign investment for housing development decreases house prices by 1.95 per cent. We also find that foreign real estate investments have a positive impact on housing construction activities in the long run. Originality/value Existing studies used aggregate foreign real estate investment in their analyses. As foreign investment in existing houses and foreign investment for housing development have different impacts on the demand and supply sides of housing market, it is crucial that the analysis of the effects of foreign investment in residential properties on real estate market is conducted for each type differently.

Defining a corporate real estate management's (CREM) brand

2014 ◽  
Vol 16 (1) ◽  
pp. 60-76 ◽  
Author(s):  
Abdul Jalil Omar ◽  
Christopher A. Heywood
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Relationship Building ◽  
Content Type ◽  
Study Approach ◽  
Brand Development ◽  
Corporate Real Estate ◽  
Multiple Case ◽  
Business Functions

Purpose – This paper aims to explore how branding theory can be used to understand corporate real estate management's (CREM's) relationships with its customers. Specifically, the perspectives of CREM executives and customers are used to develop a statement of a CREM brand. Design/methodology/approach – A multiple case study approach from four industry sections that consist of telecommunications, logistic, retail, and education from an emerging real estate market (Malaysia) and a mature real estate market (Australia). CREM executives and CREM customers from each case were interviewed to obtain information on CREM within organisations. Findings – The findings indicate that CREM supports the business by managing organisations' strategic real estate resources as its brand. CREM executives focus more on the technicality of real estate functions, while CREM customers expect corporate real estate (CRE) to support their business functions. Research limitations/implications – A CREM brand is important to CREM relationship building with the targeted customers. Successful brand development is able to increase CREM visibility to customers and at the same time gain appreciation of its contributions to the organisations. Originality/value – This is the first study that investigates CREM from a branding perspective. The mechanism for communicating CREM contributions using branding helps to increase acceptance from the customers.

Algorithm of real estate mass appraisal with inequality restricted least squares (IRLS) estimation

2020 ◽  
Vol 13 (2) ◽  
pp. 161-179
Author(s):  
Mariusz Doszyń
Keyword(s):  
Real Estate ◽  
Least Squares ◽  
Econometric Model ◽  
A Priori ◽  
Ordinary Least Squares ◽  
Real Estate Market ◽  
Negative Consequences ◽  
Content Type ◽  
Low Efficiency ◽  
The Impact

Purpose The purpose of this paper is to present an algorithm of real estate mass appraisal in which the impact of attributes (real estate features) is estimated by inequality restricted least squares (IRLS) model. Design/methodology/approach This paper presents the algorithm of real estate mass appraisal, which was also presented in the form of an econometric model. Vital problem related to econometric models of mass appraisal is multicollinearity. In this paper, a priori knowledge about parameters is used by imposing restrictions in the form of inequalities. IRLS model is therefore used to limit negative consequences of multicollinearity. In ordinary least squares (OLS) models, estimator variances might be inflated by multicollinearity, which could lead to wrong signs of estimates. In IRLS models, estimators efficiency is higher (estimator variances are lower), which could result in better appraisals. Findings The final effect of the analysis is a vector of the impact of real estate attributes on their value in the mass appraisal algorithm. After making expert corrections, the algorithm was used to evaluate 318 properties from the test set. Valuation errors were also discussed. Originality/value Restrictions in the form of inequalities were imposed on the parameters of the econometric model, ensuring the non-negativity and monotonicity of real estate attribute impact. In case of real estate, variables are usually correlated. OLS estimators are then inflated and inefficient. Imposing restrictions in form of inequalities could improve results because IRLS estimators are more efficient. In the case of results inconsistent with theoretical assumptions, the real estate mass appraisal algorithm enables having the obtained results adjusted by an expert. This can be important for low quality databases, which is often the case in underdeveloped real estate markets. Another reason for expert correction may be the low efficiency of a given real estate market.

scholarly journals Real estate business model innovation and the impact of ego network structure

2017 ◽  
Vol 40 (6) ◽  
pp. 648-670
Author(s):  
Åsa Yderfält ◽  
Tommy Roxenhall
Keyword(s):  
Real Estate ◽  
Business Model ◽  
Network Structure ◽  
Business Model Innovation ◽  
Innovative Development ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
The Impact

PurposeThis paper aims to analyze how a real estate business model innovation developed in a real estate network, with a special focus on the relationship between ego network structure and the innovative development of the business model. Design/methodology/approachThe paper is a single case study of a Swedish real estate network of 38 actors. The data were collected at the individual actor level using multiple sources: 12 semi-structured in-depth interviews, 94 min of meetings and 28 written contracts. The empirical findings resulted in four propositions. FindingsThis study demonstrates that it was primarily the building user who was behind the innovative development of the real estate business model innovation, whereas the real estate company acted as a network hub and network resource coordinator. The ego network structures significantly affected the outcome. Practical implicationsReal estate companies should act as hubs, coordinating all the network actor resources the building user needs in the value-creation process. To be effective hubs, the representatives of real estate companies must create extensive personal and open ego networks to acquire central network positions. Originality/valueFew studies examine business model innovation, particularly in the real estate context. Though large real estate businesses usually operate in the networks of various actors, analyses based on the network perspective are also lacking. This case study builds a valuable understanding of how network processes in real estate networks can be used as tools to foster real estate business model innovation, which in turn can lead to more competitive real estate companies and building users.

scholarly journals Bridging the gap between real estate research and professional practice in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tunbosun Biodun Oyedokun ◽  
Rotimi Boluwatife Abidoye ◽  
Solomon Pelumi Akinbogun
Keyword(s):  
Real Estate ◽  
Professional Practice ◽  
Academic Research ◽  
Real Estate Market ◽  
Online Questionnaire ◽  
Content Type ◽  
Research Activities ◽  
Research Findings ◽  
Real Estate Research ◽  
The Impact

PurposeBeyond contributing to literature, research findings are expected to reinforce existing best practices while also serving as a springboard for formulating new and more efficient methods of undertaking economic activities. However, academic research is sometimes divorced from implementation and research findings are not always translated into practice. This study, therefore, assesses the impact of real estate research activities and findings on the practice of real estate surveying and valuation in Nigeria as the largest real estate market in Africa.Design/methodology/approachAn online questionnaire survey was conducted to obtain relevant data from Estate Surveyors and Valuers across the country. The survey questions cover reading of academic papers from the field of real estate and the reasons for doing so; whether they have made any changes to their professional practice based on findings from academic papers; and possible barriers to adoption academic research findings in your practice. Mean score ranking and principal component analysis were employed for data analysis.FindingsOut of a total of 61 participants, only 35 have made a change to their professional practice based on findings from academic papers they have read. “Personal development and enlightenment” ranks first on the list of reasons for reading academic papers among the participants while barriers to the adoption of academic research findings relate mainly to education, dissemination and lack of guidance on how to apply research findings.Practical implicationsThe study demonstrates how findings from real estate research are being applied and identifies possible barriers that must be addressed to improve the level of application and consequently, the value of academic studies.Originality/valueThe study provides evidence on barriers to the adoption of academic research and contributes to the global effort to bridge the gap between academia and practice.

An organizational analysis of how managers must understand the mental health impact of teleworking during COVID-19 on employees

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kristine Shipman ◽  
Darrell Norman Burrell ◽  
Allison Huff Mac Pherson
Keyword(s):  
Job Satisfaction ◽  
Qualitative Research ◽  
Organizational Commitment ◽  
Real Estate ◽  
Well Being ◽  
Work Life ◽  
Content Type ◽  
The Impact ◽  
Mental Well Being

Purpose The unimagined workplace disturbance caused by the Coronavirus, also known as COVID-19, has made many organizations virtual or telework driven workplaces, often without the infrastructure and systems in place to support employees facing these sudden workplace changes (Burrell, 2020). Many stressors accompanied this transition, to include lack of childcare, home-school responsibilities and layoffs and business closings. These stressors have perpetuated concerns for the job and financial security for all workers (Fox, 2020), leading some employees to struggle with the work-life balance out of concern for being laid off due to perceived low productivity (Fox, 2020). This study aims to explore those manifestations. Design/methodology/approach This qualitative research case study explores the impact COVID-19 induced telework has on their job satisfaction, mental well-being and aspects of organizational commitment to fill a gap in the literature concerning emerging workplace dynamics due to COVID-19 for small real estate businesses in the USA. Findings The results of this qualitative research case study provide knowledge and information about the need for small businesses to be resourceful and resilient in the way that they support and engage remote workers. This qualitative research case study explores the impact COVID-19-induced telework has on their job satisfaction, mental well-being and aspects of organizational commitment for small real estate businesses. The analysis of current work-life structures through a qualitative lens provides trends among workers to gain a greater perspective of the current accelerators and barriers to worker success in a COVID-19 teleworking environment. Originality/value This qualitative research case study explores the impact COVID-19 induced telework has on their job satisfaction, mental well-being and aspects of organizational commitment to fill a gap in the literature concerning emerging workplace dynamics due to COVID-19 for small real estate businesses. The value of this research is that majority of the participants were African-Americans, which represents a participant group that is highly under researched.

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