The human factor: the “unknown unknowns” in the real estate development process

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elaine Worzala ◽  
David Wyman
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Human Factor ◽  
Commercial Real Estate ◽  
Real Estate Development ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
The Future ◽  
Decision Making Framework

PurposeVolatility, Uncertainty, Complexity and Ambiguity (VUCA) are terms the military have coined to describe the environment they often operate in. This paper examines how this decision-making framework can be used to better inform real estate investment and development. In celebration of this journal's 40th anniversary, we also explore how VUCA can be related to and expand on the teachings of Dr. James A. Graaskamp who published his seminal piece on the Fundamentals of Real Estate Development (1981) the same year. In that piece, he highlights the importance of paying attention to the human factor, the consumers of real estate.Design/methodology/approachThis is a thought piece on an alternative decision-making framework that can help capture the dynamic environment that commercial real estate investors and developers are currently working in. VUCA captures the difficulty of predicting the future in a world of accelerating, unpredictable change. This is particularly important in today's rapidly changing world caused not only by the current COVID-19 pandemic but also the exponential growth of the proptech industry as well as the increasing risks and opportunities associated with climate change that continues to impact the built environment.FindingsThis is not a traditional research project with empirical findings. We are presenting an alternative framework for thinking about making investment decisions in these current volatile, uncertain, complex and ambiguous times today and in the future. In addition, the importance of multidisciplinary training and the human factor are stressed.Research limitations/implicationsThere are no limitations to this research as it is the ideas of the authors. Implications are to help real estate investors, developers and educators better understand the environment that they are working in.Practical implicationsVUCA captures better the dynamic nature of real estate investments compared to traditional analysis. It helps one better analyze the risks and returns but also to acknowledge that there is a lot you cannot predict and there are many exogenous variables that can, at times, completely change the rules of the game. Flexibility and adaptability are essential tools for working in a VUCA environment. In addition, the human factor plays an increasingly important role and real estate investors and developers that clearly understand this and focus on the consumer will likely be more successful.Originality/valueWe believe that this is the first time that VUCA has been used in the real estate academic literature.

scholarly journals Information for decision-making in in-house and outsourced real estate management organisations

Facilities ◽  
2016 ◽  
Vol 34 (13/14) ◽  
pp. 891-905 ◽  
Author(s):  
Peter Palm
Keyword(s):  
Real Estate ◽  
Decision Maker ◽  
Commercial Real Estate ◽  
Decision Makers ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Estate Management ◽  
Real Estate Management

Purpose The purpose of this paper is to examine how the real estate owner (decision maker) insures being able to make informed decisions and how they differ according to organisational form. Design/methodology/approach This research is based on an interview study of nineteen firm representatives, six decision makers and thirteen management representatives, all from Swedish commercial real estate sector. Findings The study concludes that, regardless of organisational setting, the industry has a plan regarding handling information. The decision makers have all secured themselves access to the required/desired information. How this is done and what kind of information it is however differ, if the real estate management is in-house or outsourced. Furthermore, a clear focus on financial and contractual information is evident in both organisational settings. Research limitations/implications The research in this paper is limited to Swedish commercial real estate sector. Practical implications The insight the paper provides regarding required information can shed light on how information systems are built and how to improve your information sharing. Originality/value It provides an insight regarding how the industry, depending on organisation setting, prioritises different information and how the decision maker secures access to it.

scholarly journals Methodology for making decisions in managing commercial real estate

2021 ◽  
Vol 244 ◽  
pp. 11013
Author(s):  
Denis Smirnov ◽  
Irina Alpackaya ◽  
Taisiya Ryabova ◽  
Valery Gusev
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
The Real ◽  
The Real Estate ◽  
Theoretical Approaches ◽  
Current Trends ◽  
The Real Estate Market ◽  
Methodological Principles

The purpose of this paper is to develop guidelines for the formation and implementation of a decision-making mechanism for managing commercial real estate. As a result of the study, the current trends in the development of the real estate market are revealed, the methods and established practice of the activities of management companies are analyzed, the analysis of theoretical approaches to the management of commercial real estate is carried out. On the basis of theoretical and methodological principles and the specifics of the analyzed area of research, methodological recommendations are proposed for the formation of a mechanism for managing commercial real estate, including a method for assessing their investment attractiveness.

Representations of gender in annual reports in the real estate industry in Sweden

2016 ◽  
Vol 34 (1) ◽  
pp. 5-17 ◽  
Author(s):  
Karin Maria Staffansson Pauli
Keyword(s):  
Real Estate ◽  
Public Housing ◽  
Commercial Real Estate ◽  
Business Strategies ◽  
Annual Reports ◽  
Research Approach ◽  
Real Estate Industry ◽  
Content Type ◽  
The Real ◽  
The Real Estate

Purpose – The purpose of this paper is to clarify how annual reports of public housing and commercial real estate companies contribute in “doing gender” of the real estate industry in Sweden. How the issue of gender is dealt with in photographs, in two different types of organizations, with different corporate and business strategies, is important as they play a significant role in constructing the industry itself. Are there any differences in how they perceive gender, and what constitutes gender of the industry? Design/methodology/approach – Analysis of photographs in annual reports, 14 public housing companies and eight commercial real estate companies, in the year of 2011. Findings – The paper provides empirical insights about how “gender is done” in annual reports, men alone are shown more often as employees and both women and men are portrayed in stereotypical positions. Women are depicted more often as young and also presented in “token positions”. Research limitations/implications – Because of the chosen research approach, in studying only one year, a longitudinal study would be recommended for future studies. Practical implications – The paper includes implications for the development of gender symbols and images representing the industry, in how gender is done in public situations as in annual reports. This is not only important for the industry itself but also to stakeholders involved with the industry. Originality/value – This paper fulfils an identified need to study how photographs shown in annual reports reveal gender structure.

Influence of Parameters of Building Design to Effectiveness of Real Estate Development

2014 ◽  
Vol 1065-1069 ◽  
pp. 2520-2524
Author(s):  
Viera Somorová
Keyword(s):  
Real Estate ◽  
Development Process ◽  
Building Design ◽  
Real Estate Market ◽  
Operating Costs ◽  
Real Estate Development ◽  
Substantial Part ◽  
The Real ◽  
The Real Estate ◽  
The Future

Real estate development is in its essence the development process characterized by a considerable dynamics. The purpose of the development process is the creation of buildings which can be either rented by future unknown users or sold in the real estate market. A substantial part of the paper is dedicated to the analysis of the parameters solutions of buildings considering the future operating costs in a phase of designing. The above-indicated solutions are the main factor not only in determining the future operating costs but also in achieving the subsequent economic effectiveness of the real estate development.

scholarly journals Real estate management: incentives for effort

Facilities ◽  
2017 ◽  
Vol 35 (9/10) ◽  
pp. 573-587
Author(s):  
Peter Palm
Keyword(s):  
Real Estate ◽  
Commercial Real Estate ◽  
Decision Makers ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Work Tasks ◽  
Estate Management ◽  
Real Estate Management

Purpose The aim of this paper is to examine how the real estate owner (decision maker) can ensure that the preferred tasks are prioritised. In particular, the incentives to ensure motivation to perform to accomplish the strategic goals of the decision maker are investigated. Design/methodology/approach This research is based on an interview study of 19 firm representatives, 6 decision makers and 13 management representatives, all from the Swedish commercial real estate sector. Findings The study concludes that the real estate management organisation in the outsourced management setting is governed by the contract, in detail constituting work tasks, and in the in-house management setting, there is freedom with responsibilities instead of regulations. Research limitations/implications The research in this paper is limited to Swedish commercial real estate sector. Practical implications The insight in the paper regarding how decision makers create incentives for the real estate management organisation in the different organisational settings can provide inspiration to design incentives for effort. Originality/value It provides an insight regarding how the industry, depending on organisation setting, prioritise different work tasks and how incentives are created to enable effort.

Investigating the major causes of scope creep in real estate construction projects in Ghana

2017 ◽  
Vol 15 (4) ◽  
pp. 393-408 ◽  
Author(s):  
Charles Teye Amoatey ◽  
Betty Asantewaa Anson
Keyword(s):  
Real Estate ◽  
Construction Projects ◽  
Practical Implication ◽  
Simple Random Sampling ◽  
Real Estate Development ◽  
Individual Country ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Project Completion

Purpose The purpose of this paper is to investigate the causes of scope creep on project completion in the real estate development industry in Ghana. Design/methodology/approach Both simple random sampling and convenience sampling techniques were used in selecting the respondents for the study. The respondents were experts working in the real estate development industry in Ghana. Findings Results from the study showed that the most critical factors that cause scope creep in the Ghanaian real estate development industry are client changes, unforeseen risks and unclear scope. Mitigating measures for addressing these factors were proposed. Research limitations/implications This paper is limited to causes of scope creep in the real estate development industry in Ghana based on data collected from only real estate development firms in Accra. Due to geographic constraints, the researcher was unable to sample real estate development companies across the entire country. The finding of this study may not be generalised since causes of scope creep can be unique to individual country contexts. Practical implication This paper has documented the critical causes of scope creep and its major impacts on project completion in the real estate development industry in Ghana. The results will help project managers in the industry to appreciate the causes of scope creep and its effect on project completion as well as increase the quality of economics on real estate management and reduce the costs and risks of housing of delivery in the country. Originality/value The paper examined the causes and mitigation of project scope creep in the Ghanaian context.

scholarly journals Influence of Building Material Solution of Structures to Effectiveness of Real Estate Development

2015 ◽  
Vol 10 (2) ◽  
pp. 49-60
Author(s):  
Viera Somorová
Keyword(s):  
Real Estate ◽  
Development Process ◽  
Real Estate Market ◽  
Operating Costs ◽  
Real Estate Development ◽  
The Real ◽  
The Real Estate ◽  
The Future ◽  
Material Solution ◽  
Optimal Material

Abstract Real estate development is in its essence the development process characterized by a considerable dynamics. The purpose of the development process is the creation of buildings which can be either rented by future unknown users or sold in the real estate market. A first part of the paper is dedicated to the analysis of the parameters of buildings solutions considering the future operating costs in a phase of designing. Material solution of external structures is a main factor not only in determining the future operating costs but also in achieving the subsequent economic effectiveness of the real estate development. To determine the relationship between economic efficiency criteria and determine the optimal material variant of building constructions for the specific example is the aim of the second part of paper.

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