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This paper aims to examine the experiences of valuers when valuing market dominant and non‐dominant standard lease structures. The research compares the perceptions and approaches of New Zealand valuers when valuing gross and net leases, two standard lease types commonly utilised in the New Zealand commercial property market.

The study employs a structured survey of 87 commercial valuers practising in Auckland (where net leases dominate) and Wellington (where gross leases dominate) complemented by in‐depth interviews with senior commercial valuers employed by large national/international multidisciplinary real estate companies.

The results suggest that valuers find the process of valuing standard non‐dominant lease structures more demanding than valuing dominant leases and tend to be comparatively less confident about carrying out valuations of leases with which they are less familiar. This lack of confidence tends to result from the lack of comparable evidence and the added complexity of the valuation process requiring additional valuer expertise and judgement. In addition the study uncovers the adoption of place‐based differential valuation practices that have built up over time between the two centres under study.

The paper contributes to the literature relating to valuer behaviour by revealing that even within one country with the same rules and professional standards different valuation practices may evolve. This study specifically identifies different dominant lease structures as being one of the reasons for these differential valuation practices. The findings also highlight the difficulties perceived by valuers when valuing non‐dominant leases and in turn this may have implications when comparing the valuation outcomes of similar buildings within different markets.

Despite the growing diversity of lease structures in different global economies, the existing literature related to property service charge mechanisms has been largely confined to the UK property market. This study aims to examine tenants’ perceptions, experiences and satisfaction with being responsible for service charges in New Zealand, where major office submarkets are dominated by alternative forms of leases with different service charge responsibilities.

The study uses a structured survey of 107 major tenants of New Zealand’s listed property trust-owned properties located in Auckland (where net leases dominate) and Wellington (where gross leases dominate) complemented by ten in-depth interviews with senior property managers of tenant organisations. The collected data were analysed using various statistical tests and thematic analysis.

The results identify that tenants who are directly responsible for service charges are significantly more dissatisfied with their operating expenses (OPEX) responsibilities than tenants who do not have direct service charge responsibilities. They are dissatisfied with the interpreting, budgeting, calculating, accounting, allocating and auditing processes in the service charge management process. Tenants who are directly responsible for service charges are significantly more dissatisfied with the operation and maintenance procedures of their buildings and have weaker relationship strengths with landlords. Tenant perceptions of being responsible for service charges vary with their power relationship with the landlord, lease expectations and priorities, financial constraints, willingness to take part in the management of the premises and trust in the landlord.

This research highlights the importance of understanding the complexity of service charge mechanisms in countries where there are no regulations or codes of practice governing them and their impact on tenant leasing behaviours, experiences and satisfaction. Here, the importance of developing more widely applicable codes of practice representing countries with different lease environments is highlighted. The findings also emphasise the importance of understanding the dynamics of key market agents that actively create lease environments and how they interact and behave within these contexts.

A significant proportion of corporate real estate tends to be owned by corporate occupiers for historic reasons. This may be as a result of financial planning, the use of property as a hedge against inflation or the chance of capital gains from property redevelopment. Very often, however, property has accumulated through pure inertia or lack of management focus. Consequently, for many companies, real estate is not adding shareholder value and it is perceived to be ‘an operational pain’. This paper focuses on how corporate occupiers can manage the contribution their operational properties make to shareholder value.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.