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1 – 10 of 200Hassan Gholipour Fereidouni and Reza Tajaddini
This paper aims to investigate whether cultural dimension of power distance, which is the extent that inequality is expected and accepted in societies, can explain underlying…
Abstract
Purpose
This paper aims to investigate whether cultural dimension of power distance, which is the extent that inequality is expected and accepted in societies, can explain underlying differences in landlord-tenant practices (LTP) across countries.
Design/methodology/approach
The authors use a sample covering countries from different regions. They apply the ordered probit regressions to estimate the relationships between the explanatory variables and LTP.
Findings
The results show that hierarchical societies demonstrate more pro-landlord practices. This finding is robust to alternative measures of power distance and different sample sizes. In addition, the authors find that countries with larger rental sectors and larger numbers of landlords with mortgages demonstrate more pro-tenant practices. The results also show that differences in LTP across countries are not significantly influenced by legal origin.
Originality/value
To the best of the authors’ knowledge, very limited studies have investigated the determinants of LTP across countries. In addition, while cultural values such as power distance have been used to explain the economic, social and financial variables, less, if any, number of studies have used them to explain the variation of real estate market variables such as LTP.
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Richard Greenough and Paolo Tosoratti
The purpose of this paper is to identify the factors present in successful energy efficiency investments that might indicate how to resolve the landlord-tenant dilemma in existing…
Abstract
Purpose
The purpose of this paper is to identify the factors present in successful energy efficiency investments that might indicate how to resolve the landlord-tenant dilemma in existing and new commercial property.
Design/methodology/approach
The paper reviews literature to indicate the importance of energy efficiency in buildings and to explore the barriers to such investments, including problematic landlord-tenant relationships. Such relationships have been investigated by the International Energy Agency, and a similar approach is used here in two case studies in new and existing buildings. These studies explore the nature of landlord-tenant relationships and the importance of policy and standards of building performance.
Findings
In neither case did landlord-tenant issues constitute barriers to investments in energy efficiency, however, these investments were made for other reasons than simple cost savings. Construction of new commercial property to Passivhaus standards ensures a high-build quality and a comfortable building with low-energy costs. The added value to tenants may justify the cost of construction. The cost of investments in energy efficient buildings can also be justified by the enhanced reputation of landlords which may be more valuable than a DEC rating. In neither case was the commercial Green Deal felt to be an attractive funding mechanism.
Practical implications
Conclusions based on these case studies must be regarded as tentative, so future studies of successful energy efficient buildings should be undertaken to explore the motivation to invest, particularly the relative importance of indirect benefits of energy efficiency.
Originality/value
One of the case study buildings is exceptionally energy efficient and is the result of a particularly open and effective contractual relationship. Further study of such cases may suggest a new approach to landlord-tenant problems of energy efficiency, even in refurbishment of existing buildings.
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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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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.
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Daramola Thompson Olapade, Biodun Olapade and Bioye Tajudeen Aluko
This paper aims to explore the use of alternative dispute resolution (ADR) techniques as a legitimate means of ejection of recalcitrant tenant in property. This is with a view of…
Abstract
Purpose
This paper aims to explore the use of alternative dispute resolution (ADR) techniques as a legitimate means of ejection of recalcitrant tenant in property. This is with a view of providing information that will improve property investment and management.
Design/methodology/approach
The paper adopts a case study approach using five selected case studies where ADR approach was used to recover premises.
Findings
The experience from the case studies shows that the use of ADR in premises recovery is effective but has its challenges. In the five case studies, consent judgment, mediation and negotiation were used to recover premises in less than three months compared to an average of 18 months using litigation. Also, the cost in all the cases were lower where they exist at all than when litigation are used. The paper provides useful information to practitioners on the use of the effective alternative approach to recover premises from recalcitrant tenants.
Originality/value
The paper provides practical ways through which recovery of premises could be achieved through non-adversarial technique in developing property markets, which hitherto was not available in literature.
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The paper aims to explore the potential impact that the introduction of the UK's carbon reduction commitment (CRC) energy efficiency scheme will have on: energy use in the…
Abstract
Purpose
The paper aims to explore the potential impact that the introduction of the UK's carbon reduction commitment (CRC) energy efficiency scheme will have on: energy use in the tenanted commercial built environment; and the idea of the net lease.
Design/methodology/approach
The paper reviews various background documents preceding the implementation of CRC in order to identify the abatement incentives established. The common structure of commercial leases and the early property market reaction to CRC are also considered in order to explore how effective the CRC scheme is likely to be in achieving the twin goals of carbon saving and landlord‐tenant collaboration.
Findings
Key to the success of the CRC scheme will be the way in which the financial and reputational drivers established by the CRC scheme incentivise landlords and tenants to make technological and social changes to reduce energy consumption. Given the variety of ways that energy is supplied to tenanted commercial property, the complexity of the CRC scheme, the traditionally adversarial relations between landlords and tenants and the “split‐incentive” of commercial leases, energy abatement opportunities are found to be significantly more limited in the leasehold context than for owner‐occupied properties. Nonetheless, the paper notes that the introduction of the CRC scheme has begun an important conversation and is an important step towards tackling energy efficiency.
Originality/value
The paper brings together understandings of the legal framework of commercial leases, of the property market and practice, and the landlord and tenant relationship – to consider how the CRC scheme will help to deliver the UK's goal of reducing carbon emissions.
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Timothy Tunde Oladokun and Olatoye Ojo
The paper seeks to identify the factors that are responsible for the incursion of non‐professionals, otherwise called quacks, into property management practice in Nigeria.
Abstract
Purpose
The paper seeks to identify the factors that are responsible for the incursion of non‐professionals, otherwise called quacks, into property management practice in Nigeria.
Design/methodology/approach
Primary data were collected with the aid of questionnaires served on 270 estate surveying firms based in the study area. The proportion method was used to determine the factors that are significantly responsible for the daily incursion of non‐professionals whose activities have negatively affected real estate investment in the country.
Findings
The result shows that the high income derivable from property management practice is a major factor. Other factors in their perceived order of importance include provision of unsatisfactory and less than standard service by estate surveyors, lack of confidence by clients on the estate surveyor to evict erring tenants and shortage of qualified personnel.
Research limitations/implications
Obtaining the perception of practitioners could subject the findings of the study to bias. Further research targeted at the clients of property management services will provide a balanced view.
Originality/value
The findings from this study will provide professional bodies and policy makers with data to curb the activities of quacks and enhance the practice of real estate management.
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Nicola Livingstone and Jessica Ferm
The purpose of this paper is two-fold. Primarily, it examines the relationship between sustainable buildings and occupiers, by summarising the key extant literature. Secondarily…
Abstract
Purpose
The purpose of this paper is two-fold. Primarily, it examines the relationship between sustainable buildings and occupiers, by summarising the key extant literature. Secondarily, the paper proposes avenues for future research relating to the impact of sustainability on corporate real estate strategy.
Design/methodology/approach
The paper reviews over 90 relevant publications related to sustainability, real estate market responses and corporate real estate, focussing on the role and response of occupiers. The approach concentrates on occupier strategies, specifically considering influences such as corporate social responsibility (CSR), landlord–tenant relationships, the changing occupier role and the “circle of blame”.
Findings
In recent years, literature has increasingly begun to reflect nuances in occupier responses to sustainable, prime, office real estate, with some conflicting findings as to the importance of sustainability. Location remains the dominant consideration in decision-making for occupiers, but sustainability is key to CSR and “value-add” in certain sectors. More effective use of sustainable buildings requires improved communication between landlord and tenant. The authors’ review demonstrates that challenges still remain in relation to the “circle of blame”. More research needs to be done in relation to the emergence of sustainability in the non-prime and retail sectors.
Originality/value
Through collating key literature in this topical research area, the paper provides a critical review of occupier responses to sustainable real estate, and, therefore, a fuller understanding of emerging market practices. Additionally, it suggests future research directions.
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Stan Apps and Tova Cooper
This paper argues that Charles Reznikoff’s autobiography, Family Chronicle: An Odyssey from Russia to America, presents Jewish law as an ethical alternative to U.S. law. The…
Abstract
This paper argues that Charles Reznikoff’s autobiography, Family Chronicle: An Odyssey from Russia to America, presents Jewish law as an ethical alternative to U.S. law. The autobiography illustrates how Jewish law refuses to let social and economic hierarchies compromise its emphasis on truth-finding and the speedy resolution of legal troubles. Family Chronicle tragically portrays the Reznikoff family’s inability to exert equal bargaining power with its landlords, something commercial lease law assumes they can do. Reznikoff’s autobiography suggests that the United States can better realize its democratic principles by revising commercial lease law to reflect the tenant-centered approach of residential lease law.
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Elena Anastasiadou, Jimmie Röndell, Magnus Berglind and Peter Ekman
This study aims to offer a mid-range theory conceptualization of factors central to understanding and facilitating business actor engagement (BAE). Reports on a study of real…
Abstract
Purpose
This study aims to offer a mid-range theory conceptualization of factors central to understanding and facilitating business actor engagement (BAE). Reports on a study of real estate companies and their sustainable development goal (SDG) driven business initiatives. The aim is to identify the factors that need to be in place to facilitate positive engagement amongst actors in business-to-business (B2B) settings.
Design/methodology/approach
A case study of real estate companies (landlords of business premises) and their business customers (tenants of offices and warehouses) – comprising interviews and workshops – offer insights related to the factors that need to be in place to facilitate BAE types and outcomes.
Findings
The identified central factors of BAE – needed to understand and facilitate positive engagement to unfold – are the actors’ perception of: willingness (to act), resourcefulness (to contribute and solve issues) and influence (to affect decisions) regarding solutions related to the business initiative at hand. Failing to facilitate these factors may result in negative outcomes of BAE where “engagement” merely constitutes perceived obligations and responsibilities.
Research limitations/implications
The study offers theoretical and managerial insights on how to manage the factors needed for BAE. It also sheds light on how actors can use SDG-driven business initiatives to achieve sustainability goals.
Originality/value
It contributes to the concept of BAE, by emphasizing the dynamics of engagement, from the motivational and behavioral dimensions specific to B2B settings. It offers insights how to managerially cogovern rather than control BAE. It presents central factors needed to include and capacitate customers, facilitating successful implementations of SDG-driven business initiatives to reduce absent or negative outcomes.
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Philip G. Skinner, Abe J. Schear and Seth S. Katz
From time to time, clients ask counsel and brokers about the pros and cons of using an assignment versus a sublease to effect a transfer of possession and a transfer of…
Abstract
From time to time, clients ask counsel and brokers about the pros and cons of using an assignment versus a sublease to effect a transfer of possession and a transfer of obligations with respect to leased premises. With about equal frequency, questions come up regarding the differences between assignments and subleases, and ‘whether those differences really make a difference’ after all is said and done. While assignments and subleases are both means to achieve substantially similar ends, they do yield different legal and business results. The purpose of this paper is to explain and discuss some of the similarities and some of the distinctions between assignments and subleases, both from a legal perspective and from business and practical perspectives, and to discuss some of the reasons that the different parties involved in such transactions may prefer, or wish to select one of these transaction forms over the other.
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