Search results

1 – 10 of over 2000
Article
Publication date: 20 November 2017

Farhan Rahman, Ian Rowlands and Olaf Weber

It is becoming increasingly clear that as the pressures of climate change increase around the world, all nations must strive to lower their carbon footprint through conservation…

Abstract

Purpose

It is becoming increasingly clear that as the pressures of climate change increase around the world, all nations must strive to lower their carbon footprint through conservation. If the growth trend of green building and infrastructure construction is to be continued and improved upon, then evidence must be collected as to the benefits they bring about, and the level of support they enjoy in the market. The purpose of this paper is to shed light on the economic performance of green buildings by evaluating whether LEED for Homes and BOMA-BEST properties capture higher market valuations and lower vacancy rates. These types of research questions have not been investigated to a great deal in the Canadian context. The primary analysis concerning municipal market valuation of green buildings was conducted using robust ordinary least squares and logistic regression models. Commercial vacancy rates were compared through the use of χ2 tests. Our analysis did not lead to conclusive evidence that there exists a “green” premium in the real estate market with respect to municipal market valuations. The authors argue that this may largely be due to municipal appraisal methods that currently do not incorporate sustainability factors. As such, they may not adequately reflect market tastes and trends. Furthermore, while the vacancy rates of green commercial buildings were, on the whole, lower than their non-green counterparts, the differences were not statistically significant. Given these results, the authors propose a set of research activities that the academic community should pursue.

Design/methodology/approach

Statistical techniques are utilized test whether green certification (LEED/BOMA-BEST) leads to higher municipal valuation for both commercial and residential green properties, using regression analysis. Furthermore, χ2 tests are conducted to evaluate whether certification leads to lower vacancy rates for commercial properties.

Findings

In terms of valuation, certification does not exert (on average) a positive role in terms of higher valuations for both commercial and residential properties. However, with respect to vacancy rates, there is a tendency towards lower vacancy rates for green properties, but the relationship is not statistically significant.

Research limitations/implications

The next set of research needs to gather greater amount of data with respect to how municipal evaluations are performed since the results are counter-intuitive. Greater tracking of the financial performance of green buildings should be conducted and made available for both public and private bodies. Particularly, rental and sale prices of green buildings need to be tracked in an organized manner.

Practical implications

The valuation techniques utilized by the municipal authorities need revision as green properties are being assessed without appropriate guidance from educational institutions. Furthermore, the limited amount of “green” valuation techniques in existence may not be applied.

Originality/value

This is the first Canadian-based research looking into the valuation of green certification using rigorous quantitative statistical techniques and original and publicly available data. Furthermore, it holds important lessons for municipal authorities with respect to green building valuation beyond Canada as the limitations of current practice go mostly likely beyond the North American context.

Details

Smart and Sustainable Built Environment, vol. 6 no. 4
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 3 April 2018

Moshe Szweizer

The purpose of this paper is to extend the studies of commercial property cycles by providing a cross-field approach to property markets modelling.

Abstract

Purpose

The purpose of this paper is to extend the studies of commercial property cycles by providing a cross-field approach to property markets modelling.

Design/methodology/approach

The approach allows for the incorporation of market shocks into the property cycle model as fundamental building blocks; assessment of overall market absorption generated through cyclic activity; and timing estimation of major market events. An ideal model is first constructed, which relies on an observation that a property cycle consists of four distinctive phases. These are described formally through appropriate formulae. Subsequently, it is observed that an analogous cyclic behaviour is described in physics as the Otto cycle. The formulae derived in physics for the Otto cycle are now redefined so to be applicable to the property market.

Findings

The model has been applied to the London office market, both to the historic and the current data sets. This allowed for the comparison of model predicted absorption and vacancies with the historic records, providing for assessment of the model accuracy. The model predicted that absorption was also compared with historic space supply allowing for estimation of oversupply and resultant vacancies. London office submarkets were analysed and compared to each other, allowing for estimation of their relative attractiveness as perceived by tenants and developers.

Practical implications

The model may be used to estimate cycle generated absorption; therefore, over and under supply of space due to developers’ activity may be assessed. It is also possible to use the model to assess the timing of future market peaks and troughs.

Originality/value

This is the first research directly applying the methodology developed in physics to commercial property cycles.

Details

Journal of Property Investment & Finance, vol. 36 no. 3
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 24 January 2023

Woon Weng Wong, Kwabena Mintah, Kingsley Baako and Peng Yew Wong

The paper is motivated by the paucity of empirical research on the determinants of capitalisation rates/yield in the commercial property market. Compared to property price…

Abstract

Purpose

The paper is motivated by the paucity of empirical research on the determinants of capitalisation rates/yield in the commercial property market. Compared to property price determinants, the capitalisation rate has received significantly less attention. This is somewhat surprising given that the capitalisation rate is a more insightful indicator for investors on commercial property market performance than merely price changes or trends. The capitalisation rate, measured as the ratio of net operating income to the property’s capital value, captures the asset’s overall ability to generate income which is crucial for investors who typically invest in property for their income-generating capacity. The purpose of this paper is to address these issues.

Design/methodology/approach

To evaluate the determinants of capitalisation rates, time series analysis was used. The data capture performance in the Australian commercial property market between 2005 and 2018. All macroeconomic and financial data are freely available from official sources such as the Australian Bureau of Statistics and the nation’s central bank. Methodology wise, given the problematic nature of the data such as a mixed order of integration and the possibility of cointegration amongst some of the I (1) variables, the autoregressive distributed lag model was selected given its flexibility and relative lack of assumptions.

Findings

Bond rates, market risk premiums, stock market excess returns and other macroeconomic variables were found to drive capitalisation rates of Australian commercial properties. A 1% increase in the bond rate results in approximately 0.3–2.4% increase in capitalisation rates depending on the sub-market. Further, a 1% increase in excess market returns results in a 0.01–0.02% increase in capitalisation rates. Regarding risk premiums, a 100 basis point increase in the BBB spread results in approximately 0.92–1.27% reduction in cap rates in certain markets.

Practical implications

Asset managers will find these results useful in asset allocation strategies. Commercial properties offer attractive investment qualities such as yield stability in periods of economic uncertainty while allowing for the possibility of capital growth through appreciation of the underlying asset. By understanding the factors that affect the capitalisation rate, practitioners may predict emerging trends and identify threats to portfolio return and stability. This allows better integration of commercial property in the construction of portfolios that remain robust in a variety of market conditions.

Originality/value

The contribution to literature is significant given the lack of similar studies in the Australian market. The performance of real estate assets using cap rates as a comparative measure to equities and bonds influences decisions in asset allocation strategies. It provides crucial information for investors to estimate the performance of commercial property. This research supports the notion that both space and capital market indicators jointly affect capitalisation rates. The findings expand the knowledge base relating to commercial properties and validate the assessments of investors, developers and valuers who utilise yield as a performance benchmark for asset allocation strategies.

Details

Journal of Property Investment & Finance, vol. 41 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Abstract

Details

Social Recruitment in HRM
Type: Book
ISBN: 978-1-78635-695-6

Article
Publication date: 1 November 2006

Ben Sanderson, Kieran Farrelly and Corin Thoday

This paper seeks to contribute to knowledge of the dynamics of global office markets with an assessment of the interaction of rental growth and vacancy rates across a sample of…

2183

Abstract

Purpose

This paper seeks to contribute to knowledge of the dynamics of global office markets with an assessment of the interaction of rental growth and vacancy rates across a sample of the world's leading office markets.

Design/methodology/approach

Econometric methods are used to estimate the relationship between rental growth and vacancy rates (taking into account the possible simultaneity between the two variables) and these equations are then used to estimate the natural vacancy rate at an individual city level and collectively for the three regions assessed (Europe, Asia Pacific and North America). An estimate is also made of the global natural vacancy rate.

Findings

The results suggest that estimates of natural vacancy rates vary significantly across the world but these estimates can be helpful to those seeking to understand global office markets. European markets in general have lower natural vacancy rates than those in North America. In Asia Pacific markets there is a greater variation between markets. In general developed markets have lower natural vacancy rates than developing ones. In developing markets the concept of a natural vacancy rate is one that should be applied with care, given the weakness of data and the speed with which they are undergoing structural change. When examining the differences in natural vacancy rates between markets, it is clear that fundamental supply and demand factors are key in driving those differences.

Practical implications

“Rule of thumb” estimates of natural vacancy rates are relatively common. However, a robust methodology for calculating natural vacancy rates is a powerful analytical tool for investors, occupiers and real estate advisors, as it enables a judgement of what supply/demand balance will trigger rental growth.

Originality/value

In estimating the natural vacancy rate across a sample of the world's leading office markets the paper makes an original contribution to the understanding of global office markets and in particular delivers an appreciation of how rental growth and vacancy rates interact.

Details

Journal of Property Investment & Finance, vol. 24 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 7 March 2016

Qiulin Ke and Wencan Wang

– The purpose of this paper is to investigate the factors that affect the retail rent of shopping centres in Wuhan, an important city in central China.

1111

Abstract

Purpose

The purpose of this paper is to investigate the factors that affect the retail rent of shopping centres in Wuhan, an important city in central China.

Design/methodology/approach

The study uses a data set of 68 shopping centres in urban Wuhan. A regression model is constructed to estimate the impact on retail rent of a composite range of variables that would capture the physical characteristics, spatial characteristics, potential attractiveness of shopping centres and market condition.

Findings

The empirical findings suggest the ceiling height, closeness to metro line station, being situated in commercial central area, vacancy rate and income have significant impact on rental level. Unexpected, the retail mix has a significant negative impact on rent. The impact of the more determining factors found in Western research – size, age, parking space and anchor tenant – is not supported in the Wuhan study.

Practical implications

While 68 shopping centres are included in the test, the sample size is relatively small. The comparatively short history of retail market in Wuhan would not allow to test the rent adjustment process.

Originality/value

This is the first paper to investigate retail rent determinants in a second-tier city in China. The results of the study give designers, developers and investors critical insights into the determinants of retail rent in an emerging market.

Details

Journal of Property Investment & Finance, vol. 34 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 12 August 2014

T.B. Oyedokun, A. Oletubo and A.O. Adewusi

Occupier satisfaction has received noticeable attention in recent years due to the perceived relationship between satisfaction and investment performance which has led to property…

1235

Abstract

Purpose

Occupier satisfaction has received noticeable attention in recent years due to the perceived relationship between satisfaction and investment performance which has led to property investors giving an increased priority to creating good landlord-tenant relationship. The purpose of this paper is to assess the occupier satisfaction on management of commercial properties in Nigeria using Akure as the research site.

Design/methodology/approach

Based on a total population of 160 and employing random sampling technique, 142 questionnaires were administered on the occupiers of shopping complexes along the major routes of the city namely Oba-Adesida and Oyemekun, out of which 98 were returned and found adequate for analysis. Data analysis were done using weighted mean score and paired t-test.

Findings

The result revealed that there is significant difference between occupiers’ expected and actual satisfaction. The paper recommends a tenant-oriented management style for better performance.

Originality/value

The most important contribution of the paper is to underline the need for pragmatic and tenant-oriented management as a means to achieving increased occupier satisfaction in commercial properties.

Details

Property Management, vol. 32 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 18 September 2009

Emma Parry and Hugh Wilson

The internet is initially hailed as the future of recruitment and is expected to replace other media as the preferred recruitment method, but the adoption of online recruitment…

30514

Abstract

Purpose

The internet is initially hailed as the future of recruitment and is expected to replace other media as the preferred recruitment method, but the adoption of online recruitment has not been as comprehensively predicted. In addition, empirical research regarding online recruitment from an organisational perspective is sparse. This paper aims to examine the reasons behind an organisation's decision to use online recruitment, and reports on the development of a model of the factors affecting the adoption of this recruitment method.

Design/methodology/approach

The paper uses in‐depth interviews and a survey of human resource (HR) managers with recruitment responsibility. The factors that affect the adoption of online recruitment are explored, and related to Rogers's diffusion of innovation theory (DIT) and Ajzen's theory of planned behaviour (TPB).

Findings

Factors related to the adoption of corporate web sites and commercial jobs boards are found to be different, with positive beliefs/relative advantage, subjective norms and negative beliefs emerging in the case of corporate web sites and positive beliefs/relative advantage and compatibility for jobs boards. These results provide some fit with both Ajzen's and Rogers' factors.

Originality/value

This paper addresses an important area that is under‐researched academically and provides a basis for further research into how organisations may adopt online recruitment successfully.

Details

Personnel Review, vol. 38 no. 6
Type: Research Article
ISSN: 0048-3486

Keywords

Expert briefing
Publication date: 31 July 2020

After a temporary surge in demand for food in March, monthly retail turnover fell sharply, driven primarily by low sales of durable goods in April-May. Smaller retailers were hit…

Details

DOI: 10.1108/OXAN-DB254272

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 8 February 2008

Nico B. Rottke and Julia Gentgen

The German banking sector has recently been facing high real estate loan default rates resulting in the accumulation of a high volume of distressed real estate debt in the banks'…

5225

Abstract

Purpose

The German banking sector has recently been facing high real estate loan default rates resulting in the accumulation of a high volume of distressed real estate debt in the banks' balance sheets. As a consequence, German banks are confronted with the workout of their non‐ and sub‐performing real estate loans to proactively solve the problem. When doing so, banks have to decide whether they want to conduct the loan workout in their own workout departments (integrative approach) or whether they prefer to outsource the workout to a third party servicer or even sell their bad loan exposure to an external investor (disintegrative approach). This paper aims to investigate this issue.

Design/methodology/approach

A bank's decision to employ an integrative or a disintegrative approach can be transferred into a make‐or buy‐decision as described by the transaction cost economics. The transaction between the bank and the workout manager is analysed by the transaction characteristics of the transaction cost economics. The specificity of the human capital required for the loan workout of real estate loans is a key consideration for answering the question of integration or disintegration. Assuming highly specific investments for both, the workout manager and the bank, a formal model compares the aggregated pay offs for the bank and the workout manager to determine the optimal control structure for the specific assets.

Findings

Following the assumptions of the transaction cost economics, the specificity of the investment of the workout manager (and also the bank) is crucial for the decision of integrating or disintegrating the workout of real estate loans. The degree of specificity required to perform the workout tasks depends on the status of underlying credit engagement and the characteristics of the collateral (the real estate). The formal analysis shows that the bank and the workout manager both under‐invest in integration and disintegration scenarios. However, if the degree of specificity of the investments is equal, nonintegration is superior to integration. Forward integration is superior to nonintegration, if the bank's investment is more specific than the workout manager's investment.

Originality/value

This research paper approaches the problematic from an academic stand point, integrating both the banking and the real estate perspective and aims to provide a recommendation for banks on the integration or disintegration of the workout unit for a certain real estate secured loan portfolio.

Details

Journal of Property Investment & Finance, vol. 26 no. 1
Type: Research Article
ISSN: 1463-578X

Keywords

1 – 10 of over 2000