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Article
Publication date: 17 April 2007

David P. Lorenz, Stefan Trück and Thomas Lützkendorf

The basic purpose of this paper is to explore the relationship between the sustainability of construction on the one hand and market value, worth and property investment…

Abstract

Purpose

The basic purpose of this paper is to explore the relationship between the sustainability of construction on the one hand and market value, worth and property investment performance on the other hand. This paper aims to analyse price movements and price differences caused by different property characteristics.

Design/methodology/approach

Based on the estimated log‐linear hedonic regression model, a hedonic price index is calculated. Price movements subject to different property characteristics are examined by constructing various conditional hedonic price indexes.

Findings

The results reveal that, high‐quality flats or flats within preferred locations clearly outperform their competitors in terms of price stability during an overall market downturn. However, it is also shown that contemporary building descriptions or specifications of transactions within property databases are not yet sufficient and need to be widened to meet forthcoming challenges. Therefore, an “integrated building performance approach” is introduced and a proposal for the step‐wise improvement of building descriptions is made.

Practical implications

The paper shows that efforts need to be undertaken by the property profession in combining and transferring financial performance data along with information that is indicative of a building's contribution to sustainable development.

Originality/value

The paper offers insights into the relationship between the sustainability of construction and market value.

Details

Property Management, vol. 25 no. 2
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 1 September 2004

John R. Mansfield and David P. Lorenz

The continued globalisation of investment has led to revisions in various regulatory systems and to the development of internationally applicable standards and codes of…

Abstract

The continued globalisation of investment has led to revisions in various regulatory systems and to the development of internationally applicable standards and codes of practice. As a significant asset of many businesses, real estate values are a key element of the financial detail included in annual reports. Accordingly, valuation standards have evolved to align with the requirements of accounting and banking sectors. The international demand for standardised regulatory systems and processes has many benefits and it is of critical importance for valuers not only to be fully aware of the changes in the various influencing regulatory systems but to recognise their changed responsibilities, particularly if third parties are likely to rely upon their valuations.

Details

Property Management, vol. 22 no. 4
Type: Research Article
ISSN: 0263-7472

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Book part
Publication date: 30 September 2014

Encarnación M. Parrado-Gallardo, Elena Bárcena-Martín and Luis J. Imedio-Olmedo

In this paper, we use the distributions of order statistics to define functions with the appropriate properties to represent social preferences regarding income…

Abstract

In this paper, we use the distributions of order statistics to define functions with the appropriate properties to represent social preferences regarding income distributions. Following the approach of Yaari (1987, 1988), this allows constructing a set of social welfare functions from which the corresponding inequality indices are derived. The obtained measures incorporate diverse normative criteria, with different degrees of preference for equality. The generalized Gini coefficients and the family of indices proposed by Aaberge (2000) are obtained as particular cases. This approach allows interpreting each inequality measure in terms of the statistics computed from a randomly selected sample and the identification of unbiased estimators of the Social Welfare Functions. It also shows that each of the families of inequality indices are obtained from the moments of the order statistics and, therefore, each of the families characterizes any income distribution with finite mean. This characterization is very useful in the case of distributions with heavy tail and pronounced positive skew that shows only a few potential moments.

Details

Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting
Type: Book
ISBN: 978-1-78350-556-2

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Article
Publication date: 27 September 2011

David Lorenz and Thomas Lützkendorf

The aims of this paper are to: provide a systematic overview of various publications and international research efforts undertaken to integrate sustainability…

Abstract

Purpose

The aims of this paper are to: provide a systematic overview of various publications and international research efforts undertaken to integrate sustainability considerations into the property valuation process; summarize the key results of these publications and research efforts; highlight the role of key valuation‐input variables in considering sustainability issues when applying traditional methods of valuing income‐producing properties; briefly present and comment on a broader concept of property value and the resulting implications for property valuation practice; and provide recommendations for change in the everyday practice of individual valuation professionals and for the future operation of professional organisations and valuation‐standard‐setting bodies.

Design/methodology/approach

This paper builds on the authors' previous contributions to the discussion on sustainability and valuation, presents advances on these previous works and condenses the more theoretical issues debated earlier into concrete recommendations for future action. Starting from a literature review of the different strands of research relating to the new discipline of sustainable property investment, 31 publications and ten research projects that investigate in detail the topic of sustainability and property valuation are identified and the current stage of discussion is briefly commented on. On this basis, a systematisation of existing approaches for the integration of sustainability issues into the valuation process is presented, followed by further explanations of practical valuation issues such as identifying the key “adjustment screws” or valuation input parameters of traditional valuation methods. Finally, the underlying concept of property value is discussed and a “value map” is presented which conceptualises the relationships between different components of value as well as other value‐influencing forces.

Findings

Changes are required in the processes of gathering, processing and presenting property‐related information, as well as in the methods for determining individual valuation‐input parameters and for explicitly stating formerly implicit assumptions and qualitative judgement. This includes but is not limited to the extension of the scope and informational content of standard valuation reports to include sensitivity analyses, risk documentation and a separate section on sustainability. The required changes should be supported by actions that could be undertaken by the professional and valuation‐standard‐setting bodies and organisations within the valuation world. These actions include: embracing and improved marketing of the qualitative nature of the valuation service; the development of educational material and formal guidelines; the provision of dedicated market research to assist valuation practitioners operating in different market segments, geographic regions and local sub‐markets; and adjusting and further developing existing valuation standards to enable and support individual practitioners in offering a two‐tier valuation service to clients.

Originality/value

This paper proposes that valuation professionals and their professional bodies are confronted with a new reality of changing value perceptions and systems among market participants, and offers practical recommendations on how to cope with this situation.

Details

Journal of Property Investment & Finance, vol. 29 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

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Article
Publication date: 26 September 2008

David Lorenz and Thomas Lützkendorf

The purpose of this paper is to explain the rationale for integrating sustainability issues into property valuation theory and practice and to provide initial suggestions…

Abstract

Purpose

The purpose of this paper is to explain the rationale for integrating sustainability issues into property valuation theory and practice and to provide initial suggestions for valuers on how to account for sustainability issues within valuation reports.

Design/methodology/approach

The authors emphasise the key role of valuation professionals and of the valuation process itself in achieving a broader market penetration of sustainable construction. It is explained that, on the one hand, property valuation represents the major mechanism to align economic return with environmental and social performance of property assets, and thus to express and communicate the advantages and benefits of sustainable buildings. On the other hand, it is explained that gradual changes in market participants' perceptions in favour of sustainable buildings must be reflected within the property valuation and associated risk assessment process (otherwise valuers would produce misleading price estimates). The authors identify both the financial benefits and risk reduction potential of sustainable design as well as valuation input parameters that would allow these benefits to be reflected in property price estimates.

Findings

The authors show that the main reasons for immediately and rigorously integrating sustainability issues into property valuation are as follows: more sustainable patterns of behaviour are urgently necessary to sustain the viability of the Earth's ecosystems; a huge untapped market potential exists for sustainable property investment products and consulting services; sustainable buildings clearly outperform their conventional competitors in all relevant areas (i.e. environmentally, socially and financially); neglecting the benefits of sustainable design leads to distorted price estimates; and reflecting sustainability issues in property price estimates is already possible and the validity of this decision depends solely on the valuer's capability and sophistication to explain and justify his/her assumptions within the valuation report. However, it is also shown that efforts need to be undertaken to improve the description of property assets in transaction databases in order to provide the informational databases necessary to empirically underpin a valuer's decision to assign a “valuation bonus” to a sustainable building or a “valuation reduction” to an unsustainable/conventional one.

Originality/value

The paper postulates that valuation reports should be extended to include the following additional elements: a clear description of the availability of certain sustainability‐related property characteristics and attributes; a statement of the valuer's opinion about the benefits of these characteristics and attributes; and a statement of the valuer's opinion about the impact of these benefits and/or risks on property value.

Details

Journal of Property Investment & Finance, vol. 26 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

Content available
Book part
Publication date: 26 November 2020

Abstract

Details

International Perspectives on Gender and Higher Education
Type: Book
ISBN: 978-1-83909-886-4

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Article
Publication date: 5 September 2016

Peter Michl, David Lorenz, Thomas Lützkendorf and Sarah Sayce

The purpose of this paper is to report on the findings of a survey conducted by the Royal Institution of Chartered Surveyors (RICS) to discuss the extent to which…

Abstract

Purpose

The purpose of this paper is to report on the findings of a survey conducted by the Royal Institution of Chartered Surveyors (RICS) to discuss the extent to which qualified valuers have adapted their valuation practices in the light of guidance published by RICS in respect of sustainability and commercial property. The findings are placed within a wider debate between assessment of market value and investment value (worth).

Design/methodology/approach

The paper is a theoretical discussion incorporating the results from an empirical survey of valuation practitioners.

Findings

The paper reveals that guidance published by RICS in 2011 has achieved limited, but variable, impact in terms of impacting on valuation practice due to a combination of factors including lack of knowledge of the guidance, non-requirement of clients to request sustainability reporting within valuations, paucity of data. It found that where worth (investment value) is required, sustainability factors are more likely to impact the calculation than where an estimate of market value is prepared. The paper identifies theoretical problems and practical barriers hindering an integration of sustainability aspects into valuation practice.

Research limitations/implications

The empirical work was conducted prior to the embedding of guidance within the mandatory provisions of the “Red Book”; the study therefore reports on a direction of travel rather than the current position. The implications for research are the requirement to enhance data capture and to seek ways to break down the barriers to more comprehensive integration of such data so that worth and market values may begin to converge.

Practical implications

The paper has practical implications for both the education of valuers which is proposed through the RenoValue project discussed in the paper and for the RICS in monitoring progress towards more specific integration within valuers’ calculations. Further, the paper identifies that clients and lenders have a key role to play through the instructions given to valuers.

Social implications

There is now widespread recognition that properties which are not resource efficient and which are not equipped to flex to changing occupier needs may not currently be “future proofed” in investment value terms and are likely to see value erosion over time. Further, buildings have a key role in terms of climate change policy. Whilst new buildings can be mandated to meet improved efficiency standards, the ways in which buildings owners can be encouraged to upgrade will be important moving forward. One way is through a value chain response.

Originality/value

The survey is the most comprehensive investigation of valuer’s practice in relation to sustainability and the assessment of market value and worth undertaken. This provides a unique insight into the effectiveness of professional guidance and enables an informed discussion as to appropriate ways to enhance guidance moving forward.

Details

Journal of Property Investment & Finance, vol. 34 no. 6
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 5 June 2017

David Cameron and Anna Grant

The purpose of this paper is to explore the ways in which external subject-specific mentoring can influence the professional identity construction of early career physics…

Abstract

Purpose

The purpose of this paper is to explore the ways in which external subject-specific mentoring can influence the professional identity construction of early career physics teachers (ECPT).

Design/methodology/approach

The methodology evolved from the evaluation of a mentoring project, involving semi-structured interviews with a number of early career teachers. Responses from 18 teachers, which related to the impact of the mentoring relationship on their professional identity development, were subject to a process of iterative thematic coding in the context of interpretative repertoires via a collaborative “developmental dialogue” between the managers of the mentoring project and its external evaluators.

Findings

The analysis of participants’ responses suggested that the nature of the relationship between early career teacher and mentor played a role in the emergence, or suppression, of their professional identities as physics teachers at the start of their teaching careers. In some cases, mentoring provision was little short of a “lifeline” for the teachers.

Practical implications

Mentors need the opportunity to develop their professional practice and identity through contact with the community of teacher educators. The practice of training, mentoring and coaching teachers should be valued at least as much as teaching itself and should be recognised as its own professional practice.

Originality/value

This study builds on a number of well-established pieces of research and concepts relating to the challenges facing early career teachers and their professional identity construction. It provides insight into the challenges facing ECPTs specifically, which includes the risk of isolation and unrealistic expectations from colleagues. It not only confirms the merits of external mentoring, but also demonstrates the significant responsibility, which comes with the mentor’s role and the negative impact on teachers’ professional identity construction caused by deficiencies in mentoring.

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Book part
Publication date: 24 May 2007

Frederic Carluer

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth

Abstract

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

Details

Managing Conflict in Economic Convergence of Regions in Greater Europe
Type: Book
ISBN: 978-1-84950-451-5

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Abstract

Details

Cognitive Economics: New Trends
Type: Book
ISBN: 978-1-84950-862-9

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