scholarly journals Blockchain technology in commercial real estate transactions

2019 ◽  
Vol 37 (6) ◽  
pp. 570-579 ◽  
Author(s):  
Hugo Pieter Wouda ◽  
Raymond Opdenakker
Keyword(s):  
Real Estate ◽  
Design Science ◽  
Science Research ◽  
Commercial Real Estate ◽  
Office Building ◽  
Content Type ◽  
Blockchain Technology ◽  
Transaction Process ◽  
Current Transaction ◽  
Pain Points

Purpose The transaction process of an office building is known to be time consuming and inefficient, in part due to the lack of market transparency. The purpose of this paper is to focus on the development of a blockchain application that can improve the transaction process of office buildings in the Netherlands. Design/methodology/approach Conducting design science research, the current transaction process of an office building and status quo of blockchain technology in real estate is investigated. Subsequently, multiple parties are interviewed to define major pain points within the process. The interview findings are used to design a blockchain solution which overcomes the aforementioned pain points. After designing, the interviewees are asked again to pragmatically validate the proposed model. Findings One of the major pain points identified concerning the transaction process of an office building is that it is difficult to define the characteristics of a property, due to lack of data structure and quality. The proposed application improves the way specific assets are understood by structuring physical and contractual information in one place and guarantees the quality of the data by using the blockchain mechanisms. Practical implications A blockchain application is proposed, which can improve the transaction process of an office building. Originality/value Recent studies indicate that blockchain technology could lead to improvements in efficiency, transparency and therefore trust within the transaction process. Therefore, the proposed application is of value for the future of real estate data management and the transaction process.

Capitalisation rates for commercial real estate investment decisions

2015 ◽  
Vol 33 (3) ◽  
pp. 242-255 ◽  
Author(s):  
John McDonald
Keyword(s):  
Real Estate ◽  
Commercial Real Estate ◽  
Office Buildings ◽  
Office Building ◽  
Vacancy Rate ◽  
Recent Past ◽  
Content Type ◽  
Empirical Results ◽  
Real Estate Valuation ◽  
Capitalization Rate

Purpose – The purpose of this paper is to present a basic model of commercial real estate valuation in which the capitalization rate is the critical variable, and to present empirical results for a study of office building capitalization rates. Design/methodology/approach – The model is derived from standard economic and financial theories. The empirical study uses data from the sale of office buildings in 37 downtown markets for 2012. The empirical results are related to concepts of asset market efficiency. Findings – The empirical results show that capitalization rates depend on features of the office buildings, vacancy rate, and recent change in the office building market as captured by the vacancy rate. In other words, investors are using variables implied by standard economic and financial theory and basic economic data from the recent past to determine the capitalization rate. Practical implications – The empirical results show how investors determine capitalization rates for office buildings, so potential investors can gauge the state of a property market. Originality/value – The paper shows that changes in capitalization rates are predictable; investors use past data to adjust their capitalization rates. Furthermore, if an investor does not agree that current trends will continue, then the investment decision should be determined accordingly. For example, if an investor thinks that the future will not be as robust as the recent past, then other investors will bid more than the investor thinks is reasonable. However, if the investor sees a future that is brighter than the recent past, it is time to buy.

scholarly journals Using Blockchain Technology to Foster Collaboration among Shippers and Carriers in the Trucking Industry: A Design Science Research Approach

Logistics ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 37
Author(s):  
Serkan Alacam ◽  
Asli Sencer
Keyword(s):  
Private Information ◽  
Design Science ◽  
Science Research ◽  
Trucking Industry ◽  
Research Approach ◽  
Blockchain Technology ◽  
Storage Solutions ◽  
Sustainability Problems ◽  
And Storage ◽  
Industry Professionals

In the global trucking industry, vertical collaboration between shippers and carriers is attained by intermediaries, called brokers. Brokers organize carriers for a shipper in accordance with its quality and price requirements, and support carriers to collaborate horizontally by sharing a large distribution order from a shipper. Brokers also act as trustees, preventing the passing of private information of any party to the others. Despite these benefits, intermediaries in the trucking industry are involved in several sustainability problems, including high costs, high levels of carbon emissions, high percentages of empty miles, low-capacity utilizations, and driver shortages. Several studies have acknowledged the importance of improving collaboration to address these problems. Obviously, the major concern of brokers is not collaboration, but rather to optimize their own gains. This paper investigates the potential of blockchain technology to improve collaboration in the trucking industry, by eliminating brokers while preserving their responsibilities as organizers and trustees. This paper extends the transportation control tower concept from the logistics literature, and presents a system architecture for its implementation through smart contracts on a blockchain network. In the proposed system, the scalability and privacy of trucking operations are ensured through integration with privacy-preserving off-chain computation and storage solutions (running outside of the blockchain). The potential of this design artifact for fostering collaboration in the trucking industry was evaluated by both blockchain technology experts and trucking industry professionals.

Potential for optimising organisational structures in the technical due diligence for real estate transactions in Germany

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yannis Steffen Oetken ◽  
Christian Hofstadler ◽  
Felix Meckmann
Keyword(s):  
Real Estate ◽  
Transaction Management ◽  
Due Diligence ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Theoretical Approaches ◽  
Transaction Process ◽  
Organisational Structures

PurposeThe individual levels involved in real estate management are thoroughly discussed in the literature. This paper provides a structured meta-analysis of the different theoretical approaches in German-speaking countries. It also investigates the integration of transaction management and technical due diligence into the concepts of organisation theory. In this process, the interfaces are analysed and optimised models are developed for transferring the technical due diligence findings to the operational level.Design/methodology/approachInterviews with transaction management experts were conducted based on a narrative literature review. These interviews shed light on how the components of transaction management and due diligence are integrated into the transaction process, with a particular focus on technical due diligence. They also provide insights into how the related results are taken into account in relation to the transaction, and how they are transferred into the operational phase.FindingsIt becomes apparent that the role of transaction management is not clearly defined and delimited in the structural model of the real estate industry. Technical due diligence findings are usually transferred to the operation of the property via several, manual interfaces with corresponding losses of knowledge. The related models derived and developed for the purpose of operational optimisation define the role of transaction management against a technical background and identify the interfaces to be considered.Practical implicationsThe significance of transaction management for subsequent operations is discussed and elaborated on. More specifically, transferring safety-relevant, high-priority findings from the technical due diligence exercise plays a crucial role for the modelling stage. On the implementation level, the derived models serve as a basis for customising the internal organisational structure.Originality/valueIn Germany, there has hardly been any research into the involvement of technical experts in the real estate transaction process to date. This paper provides initial approaches to optimising organisational structures and sustainably integrating technical due diligence findings into real estate operations.

A barrier diagnostic framework in process of digital transformation in higher education institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bayu Rima Aditya ◽  
Ridi Ferdiana ◽  
Sri Suning Kusumawardani
Keyword(s):  
Higher Education ◽  
Process Model ◽  
Design Science ◽  
Research Question ◽  
Science Research ◽  
Digital Transformation ◽  
Successful Implementation ◽  
Content Type ◽  
Systematic Understanding ◽  
Diagnostic Framework

PurposeExisting literature has reported a barrier list that could affect the implementation of digital transformation in higher education, yet the research question of how to identify barriers remained unanswered. Thus, this study intended to address this gap.Design/methodology/approachThe research design adopted a mixed-methods approach based on the problem-centered design science research (DSR) process model for the development and evaluation of framework.FindingsThis study proposed a systematic framework of three sets of components: (1) the initial set of barriers; (2) the barrier rating scheme and (3) the barrier scoring matrix. The three-component of the framework is to identify and prioritize barriers to the successful implementation of digital transformation in higher education.Research limitations/implicationsThe evaluation of the framework was only based on an expert opinion.Practical implicationsThis study provided a direction to the policymakers for designing sensible strategies to increase the chances of a successful digital transformation in higher education.Originality/valueThis study contributes to the knowledge body by offering a more systematic understanding of barriers to digital transformation in higher education.

Sales and operations planning for new products: a parallel process?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gustavo Bagni ◽  
Juliana Keiko Sagawa ◽  
Moacir Godinho Filho
Keyword(s):  
Design Science ◽  
Contextual Factors ◽  
New Products ◽  
Science Research ◽  
Operations Planning ◽  
Content Type ◽  
Demand Fulfillment ◽  
Viable Solution ◽  
Additional Costs ◽  
Update Frequency

PurposeThis paper aims to detail how a Sales and Operations Planning (S&OP) process can be designed to support the planning requirements of recently introduced products.Design/methodology/approachDesign science research was conducted to propose and implement an S&OP model for demand fulfillment after the introduction of new products. The results were analyzed using the CIMO (Context, Intervention, Mechanisms and Outcomes) logic, and two sets of design propositions were formulated.FindingsAn S&OP process for new products can reduce additional costs for market fulfillment by concentrating the planning efforts on new products, aligning organizational efforts, and increasing the sales and supply chain information’s update frequency.Research limitations/implicationsThe outcomes of S&OP new products were analyzed in a single organization and are limited to the contextual factors presented.Practical implicationsThis paper describes in detail how to organize an S&OP focused on new products. By considering the contextual factors and design propositions, managers can potentially increase the success of new products introduction (NPI) in their context.Originality/valueA specific S&OP process focused on new products is a viable solution and could co-exist with a traditional S&OP process. Moreover, we identified six contextual factors that influence the outcomes of the S&OP new products.

A post-global financial crisis (GFC) framework for strategic planning, assessment and management decision making for US sustainable commercial real estate

2017 ◽  
Vol 35 (6) ◽  
pp. 589-618 ◽  
Author(s):  
Pernille Hoy Christensen
Keyword(s):  
Decision Making ◽  
Financial Crisis ◽  
Real Estate ◽  
Performance Indicators ◽  
Institutional Investors ◽  
Global Financial Crisis ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Content Type ◽  
Sustainability Initiatives

Purpose The purpose of this paper is to understand both the facts and the values associated with the breadth of issues, and the principles related to sustainable real estate for institutional investors. Sustainable real estate is a growing sector within the commercial real estate industry, and yet, the decision-making practices of institutional investors related to sustainability are still not well understood. In an effort to fill that gap, this research investigates the post-global financial crisis (GFC) motivations driving the implementation of sustainability initiatives, the implementation strategies used, and the predominant eco-indicators and measures used by institutional investors. Design/methodology/approach This paper presents the results of a three-round modified Delphi study conducted in the USA in 2011-2012 investigating the nature of performance measurements and reporting requirements in sustainable commercial real estate and their impact on the real estate decision-making process used by institutional investors. Two rounds of in-depth interviews were conducted with 14 expert panelists. An e-questionnaire was used in the third round to verify qualitative findings. Findings The key industry drivers and performance indicators influencing institutional investor decision making were associated with risk management of assets and whether initiatives can improve competitive market advantage. Industry leaders advocate for simple key performance indicators, which is in contrast to the literature which argues for the need to adopt common criteria and metrics. Key barriers to the adoption of sustainability initiatives are discussed and a decision framework is presented. Practical implications This research aims to help industry partners understand the drivers motivating institutional investors to uptake sustainability initiatives with the aim of improving decision making, assessment, and management of sustainable commercial office buildings. Originality/value Building on the four generations of the sustainability framework presented by Simons et al. (2001), this research argues that the US real estate market has yet again adjusted its relationship with sustainability and revises their framework to include a new, post-GFC generation for decision making, assessment, and management of sustainable real estate.

scholarly journals What sells in a crisis? Determinants of sale probability over a cycle and through a crash

2017 ◽  
Vol 35 (6) ◽  
pp. 619-637 ◽  
Author(s):  
David Scofield ◽  
Steven Devaney
Keyword(s):  
Real Estate ◽  
Sample Selection ◽  
Sampling Technique ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Content Type ◽  
Asset Selection ◽  
The Uk ◽  
Real Estate Cycle ◽  
Over Time

Purpose The purpose of this paper is to understand what affects the liquidity of individual commercial real estate assets over the course of the economic cycle by exploring a range of variables and a number of time periods to identify key determinants of sale probability. Design/methodology/approach Analyzing 12,000 UK commercial real estate transactions (2003 to 2013) the authors use an innovative sampling technique akin to a perpetual inventory approach to generate a sample of held assets for each 12 month interval. Next, the authors use probit models to test how market, owner and property factors affect sale probability in different market environments. Findings The types of properties that are most likely to sell changes between strong and weak markets. Office and retail assets were more likely to sell than industrial both overall and in better market conditions, but were less likely to sell than industrial properties during the downturn from mid-2007 to mid-2009. Assets located in the City of London more likely to sell in both strong and weak markets. The behavior of different groups of owners changed over time, and this indicates that the type of owner might have implications for the liquidity of individual assets over and above their physical and locational attributes. Practical implications Variation in sale probability over time and across assets has implications for real estate investment management both in terms of asset selection and the ability to rebalance portfolios over the course of the cycle. Results also suggest that sample selection may be an issue for commercial real estate price indices around the globe and imply that indices based on a limited group of owners/sellers might be susceptible to further biases when tracking market performance through time. Originality/value The study differs from the existing literature on sale probability as the authors analyzed samples of transactions drawn from all investor types, a significant advantage over studies based on data restricted to samples of domestic institutional investors. As well, information on country of origin for buyers and sellers allows us to explore the influence of foreign ownership on the probability of sale. Finally, the authors not only analyze all transactions together, but the authors also look at transactions in five distinct periods that correspond with different phases of the UK commercial real estate cycle. This paper considers the UK real estate market, but it is likely that many of the findings hold for other major commercial real estate markets.

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.

Digital transformation of legionella-safe cooling towers: an ecosystem design approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alexandra Ângelo ◽  
João Barata
Keyword(s):  
Cooling Tower ◽  
Design Science ◽  
Science Research ◽  
Digital Transformation ◽  
Cooling Towers ◽  
Goal Modeling ◽  
Outbreak Response ◽  
Content Type ◽  
Outbreak Management ◽  
Digital Architecture

Purpose Legionnaires’ disease is a major threat to public health. Solutions to deal with this problem are usually siloed and not entirely effective. This paper aims to model the information requirements of legionella-safe cooling towers in the era of Industry 4.0. Design/methodology/approach A year-long design science research was conducted in a cooling tower producer for heavy industries. The project started with a bibliometric analysis and literature review of legionella in cooling towers. Goal modeling techniques are then used to identify the requirements for digital transformation. Findings The improvement of legionella prevention, detection and outbreak response in digitally enabled cooling tower should involve different stakeholders. Digital twins and blockchain are disruptive technologies that can transform the cooling tower industry. Originality/value For theory, this study revises the most recent advances in legionella protection. Legionella-safe systems must be prepared to anticipate, monitor and immediate alert in case of an outbreak. For practice, this paper presents a distributed and digital architecture for cooling tower safety. However, technology is only a part of outbreak management solutions, requiring trustworthy conditions and real-time communication among stakeholders.

Blockchain technology design in accounting: Game changer to tackle fraud or technological fairy tale?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Piera Centobelli ◽  
Roberto Cerchione ◽  
Pasquale Del Vecchio ◽  
Eugenio Oropallo ◽  
Giustina Secundo
Keyword(s):  
Conceptual Framework ◽  
Fairy Tale ◽  
Design Science ◽  
Distributed Database ◽  
Full Potential ◽  
Content Type ◽  
Technological Infrastructure ◽  
Strategic Issues ◽  
Blockchain Technology ◽  
Private Network

PurposeThis paper aims to design, build and evaluate a blockchain platform in the accounting domain, taking an ecosystem perspective. To achieve this aim, the research provides evidence for developing a decentralised architecture rooted on blockchain technology, designing a proof of concept and modelling an accounting blockchain-based system.Design/methodology/approachMoving from the analysis of previous literature and leveraging on the design science approach, this paper provides a framework grounded on the main pillars of blockchain and accounting functions, identifying technical and non-technical issues that must be addressed embrace blockchain technology's full potential.FindingsWe propose and discuss a conceptual framework for a blockchain-based accounting context, moving from the identification of a typical accounting scenario. The framework is organised around three scalable levels: the first level is a technological infrastructure based on a distributed database with peer-to-peer storage; second, in the intermediate level, increasing control levels are assured through permissions and validation and third, in the higher level, the system provides the integration of business and security applications. The deployment of this system relies on a private network of nodes that validates transactions.Practical implicationsThe proposed conceptual framework about blockchain development in accounting allows closing the knowledge gap between blockchain developers and accounting experts by suggesting technological and strategic issues for practitioners.Originality/valueWe provide practical guidelines to design and adopt blockchain in the accounting domain.

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