scholarly journals Utilizing Commercial Real Estate Owner and Investor Data to Analyze the Financial Performance of Energy Efficient, High-Performance Office Buildings

2017 ◽  
Author(s):  
Deborah Cloutier ◽  
◽  
Farshid Hosseini ◽  
Andrew White
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Energy Efficient ◽  
High Performance ◽  
Commercial Real Estate ◽  
Office Buildings ◽  
Estate Owner ◽  
Real Estate Owner

scholarly journals Outsourced property management: the regulations of the property manager

2018 ◽  
Vol 36 (5) ◽  
pp. 620-632 ◽  
Author(s):  
Peter Palm
Keyword(s):  
Real Estate ◽  
Facility Management ◽  
Commercial Real Estate ◽  
Property Management ◽  
Individual Property ◽  
Content Type ◽  
The Real Estate ◽  
Estate Owner ◽  
Real Estate Owner ◽  
The Individual

Purpose The purpose of this paper is to identify factors on property management level for analysing incentives for an effective property management in an outsourced setting. Design/methodology/approach This research is based on an interview study of a set of three real estate-owning companies and their contracted facility management companies’ property management teams. Findings The study concludes that the property manager within the facility management company is highly controlled by the contract between the real estate owner and the facility management company. However, this contract does risk the individual property manager to prioritise the wrong work tasks as she/he has to know exactly what to prioritise in each contract and consider in whose interest she/he performs each task, the real estate owner, her/him employer or the tenants. Research limitations/implications The research in this paper is limited to Swedish commercial real estate sector. Practical implications The insight in the paper is regarding how real estate owners create incentives for the facility management companies’ property management organisation and how that are perceived by the individual property manager. Originality/value It provides an insight regarding how the commercial real estate industry prioritises different work tasks and how incentives are created to enable effort.

scholarly journals Problems Associated with the Legal Substance of Real Estate Encumbrances

2015 ◽  
Vol 1 (1) ◽  
pp. 54
Author(s):  
Inga Kudeikina
Keyword(s):  
Real Estate ◽  
Property Rights ◽  
Common Good ◽  
Case Law ◽  
Related Case ◽  
The Real Estate ◽  
Special Procedure ◽  
Estate Owner ◽  
Entire Society ◽  
Real Estate Owner

The article is devoted to the problems pertaining to the establishment of encumbrances on real estate. Encumbrances that are created on the basis of law have a different legal substance. As a rule, encumbrances by law are significant and bring benefits to an unlimited number of rightholders. This type of encumbrances includes various protection zones, roads, nature reserves, etc. It is assumed that these encumbrances are for the common good; therefore, the rights of an owner may be restricted. Legislation allows establishing encumbrances without any authorisation from the real estate owner. The objective of the thesis is to analyse the legitimacy of encumbrances based on law in the context of the impairment of owner's property rights. To this end, both descriptive and analytical methods have been employed to analyse the legal grounds for encumbrances and related case-law. The study has relied on both legislation and case-law. The results of the study give strong grounds to conclude that a special procedure could be applied to the establishment of encumbrances in situations when those are intended to meet the needs of the entire society or individual communities of certain regions. Like any other encumbrances, those established by law restrict owner's property rights. A real estate encumbrance should be recognised as a restriction on owner's property rights. Certain remedies should be introduced with a view to balancing the rights and interests of the society and the owner and minimising the adverse effects of encumbrances. Such remedies could comprise an owner's right to claim reasonable compensation, challenge the establishment of encumbrances and initiate their annulment.

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 PARTNERSHIP PRACTICES AND THEIR IMPACT ON VALUE CREATION – REFLECTIONS FROM LEAN MANAGEMENT

2014 ◽  
Vol 18 (1) ◽  
pp. 56-65 ◽  
Author(s):  
Tuuli Jylha ◽  
Seppo Junnila
Keyword(s):  
Real Estate ◽  
Value Creation ◽  
Customer Value ◽  
Service Providers ◽  
Property Management ◽  
Lean Management ◽  
Real Estate Sector ◽  
Estate Owner ◽  
Real Estate Owner ◽  
Business District

The trend of outsourcing operational property management services by the property owners has had a prominent role in the Finnish real estate sector. At the same time, value creation has been scattered across many players such as the owner, the property manager and several service providers. This paper aims to analyse the value creation practices and mechanisms between two partners, a real estate owner and its property management company, in order to assess the current value creation. The assessment is based on a lean partnering framework presented by Lamming (1993). The customers are office tenants in the Helsinki business district. The case findings showed that the expected customer value was challenging to deliver, because waste activities disrupted the value creation. The partners had also adapted some of the value creation practices differently, which caused turbulence in value creation. In addition, the partners had missed the power of doing improvements jointly, but prefer to use bidding to establish value creation. However, through lean thinking the organisations found a much-needed new approach to develop their partnership. The principles of lean management made the problem clearer and enabled the organisations to start dealing with the relevant challenges.

scholarly journals THE INTRODUCTION OF ENERGY-EFFICIENT TECHNOLOGIES IN THE CONSTRUCTION OF A NEW COMMERCIAL REAL ESTATE IN UKRAINE

2020 ◽  
Vol 2 (2) ◽  
pp. 8-18
Author(s):  
Bakhtin D. ◽  
Keyword(s):  
Real Estate ◽  
Energy Efficient ◽  
Large Scale ◽  
Commercial Real Estate ◽  
The State ◽  
It Industry ◽  
Technology Parks ◽  
Efficient Construction ◽  
Building Standards

The article identifies the main conditions and problems of introducing energy-efficient technologies for business in Ukraine and considers the design experience of building green commercial buildings that have been erected in recent years (innovative parks UNIT.City in Kiev and LvivTech.City in Lviv, on the Sobachie mouth peninsula, Astarta Business Center in Kiev, etc.) It has been established that the main problem of introducing energy-efficient technologies in public commercial projects is the insufficient participation of the state in financing and stimulating business. To establish this process, it is necessary to amend the legislation on land, on technology parks, on the procedure for taxation and subsidies to enterprises that develop energy-efficient technologies in construction at different levels. The features of Ukrainian development and the dependence of the profitability of the building on the quality of the architectural solution are considered. It has been found that energy-efficient technologies are of interest only to a small fraction of commercial real estate developers who are focused on the development of the IT industry. To be able to deploy economically feasible energy-efficient commercial projects in other sectors, both state support and business entry into foreign investment markets will need additional guarantees and reduce the risk of waiting for a 10-15-year payback period for large-scale innovative projects. It was revealed that the IT industry has become a catalyst for the development of innovations in the field of energy-efficient construction. Thanks to it, architects were able to realize energy-efficient public buildings of the commercial sector, which are the prototypes for further similar design in Ukraine and the basis for developing the principles of "green" construction, the main provisions of which can be reflected in the changes to the state building standards of Ukraine.

scholarly journals Occupier satisfaction and its impact on investment returns from UK commercial real estate

2017 ◽  
Vol 35 (2) ◽  
pp. 135-159 ◽  
Author(s):  
Danielle Claire Sanderson ◽  
Steven Devaney
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Customer Service ◽  
Positive Relationship ◽  
Global Financial Crisis ◽  
Commercial Real Estate ◽  
Property Management ◽  
Management Service ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between occupiers’ satisfaction with the property management service they receive and the financial performance of commercial real estate. Design/methodology/approach The study uses occupier satisfaction data for 240 UK commercial properties collected over a 12-year period and the annual total returns achieved by those properties. Various statistical techniques are employed to assess whether increasing occupier satisfaction leads to greater returns for investors. These include comparing excess returns and risk-adjusted returns with occupier satisfaction at each property to assess whether superior property management generates outperformance (“positive alpha”). The study also investigates whether the relationship between occupier satisfaction and returns is the same across all sectors and whether it is affected by market conditions. Findings A positive correspondence is found between benchmark outperformance and occupier satisfaction. The relationship is similar for all sectors of commercial property and is particularly strong during the Global Financial Crisis, indicating that paying attention to satisfying the needs of occupiers has particular benefits during periods when the supply of commercial real estate exceeds demand. Research limitations/implications The sample of properties was restricted to those for which occupier satisfaction data had been collected by RealService Ltd and whose owners permitted access to the financial performance results. This meant that the properties belong to only three landlords, all UK REITs that care sufficiently about occupier satisfaction to commission studies. Thus the findings might not apply to all commercial properties. The mechanism by which the positive relationship between satisfaction and financial performance occurs is not tested, but the conventional mechanisms of reputation and customer loyalty (the “service-profit chain”) are discussed. Practical implications The findings suggest that it is worthwhile for landlords, or property managers acting on their behalf, to understand the needs of their occupiers in order to deliver the level of service that those occupiers desire. Leases in the UK are generally “triple net” and the total returns used for this analysis are net of property management costs, so the positive relationship between satisfaction and performance is not the result of economising on service delivery. A further implication is that valuers should take more account of occupier satisfaction when assessing the capital value of a property, from which total returns are assessed. Originality/value Demonstrating the links between customer service, customer satisfaction and business profitability is rarely attempted because of the many confounding factors that affect profitability. UK listed real estate companies are typically reluctant to reveal the financial performance of individual properties, and information about occupiers’ satisfaction is not generally available. The authors were fortunate to be granted access to a time series of such data, and to be able to demonstrate that attention to delivering a property management service that satisfies occupiers is likely to bring financial rewards to the owners of the property.

Design Optimization of Energy Efficient Office Buildings in Tunisia

2013 ◽  
Vol 135 (4) ◽  
Author(s):  
Pyeongchan Ihm ◽  
Moncef Krarti
Keyword(s):  
Energy Efficiency ◽  
Energy Efficient ◽  
High Performance ◽  
Energy Use ◽  
Cost Effective ◽  
Energy Performance ◽  
High Energy ◽  
Office Buildings ◽  
Optimization Approach ◽  
Heating And Cooling

Optimal and cost-effective energy efficiency design and operation options are evaluated for office buildings in Tunisia. In the analysis, several design and operation features are considered including orientation, window location and size, high performance glazing types, wall and roof insulation levels, energy efficient lighting systems, daylighting controls, temperature settings, and energy efficient heating and cooling systems. First, the results of the optimization results from a sequential search technique are compared against those obtained by a more time consuming brute-force optimization approach. Then, the optimal design features for a prototypical office building are determined for selected locations in Tunisia. The optimization results indicate that utilizing daylighting controls, energy efficient lighting fixtures, and low-e double glazing, and roof insulation are required energy efficiency measures to design high energy performance office buildings throughout climatic zones in Tunisia. In particular, it is found that implementing these measures can cost-effectively reduce the annual energy use by 50% compared to the current design practices of office buildings in Tunisia.

Sign in / Sign up

Export Citation Format

Share Document