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1 – 10 of over 2000
Article
Publication date: 3 April 2017

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…

1834

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.

Details

Journal of Corporate Real Estate, vol. 19 no. 1
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 15 January 2021

Ka Shing Cheung and Joshua Lee

Real estate is an asset that is traded in highly segmented, illiquid and informationally inefficient local markets. A short sale in real estate is almost infeasible and therefore…

Abstract

Purpose

Real estate is an asset that is traded in highly segmented, illiquid and informationally inefficient local markets. A short sale in real estate is almost infeasible and therefore impedes informed rational arbitrageurs to trade against mispricing. Thus, real estate returns are prone to sentiment-driven behaviours. Will the impacts on asset returns be identical for different types of sentiment?

Design/methodology/approach

This study argues that not all sentiment effects are created equal. Using the bounds test of the autoregressive distributed lag (ARDL) models, this paper examines how occupier sentiment versus investor sentiment contributes to the short-run and long-run dynamics of commercial real estate returns in Australia.

Findings

The empirical evidence suggests that investor sentiment and occupier sentiment influence return asymmetrically after macroeconomic conditions are controlled for.

Practical implications

The sectoral analysis further reveals that sector-specific sentiment plays a significant role in explaining commercial real estate returns. Furthermore, notable improvement is found in producing more accurate prediction in returns, given that measures of occupier and investor sentiment are appropriately specified in the forecast.

Originality/value

This study is novel in the sense that it acknowledges the impacts of occupiers' and investors' sentiment may be fundamentally different. The unique innovation and contribution of this study to behavioural finance literature are based on a new dataset from the Royal Institute of Chartered Surveyors which includes a survey-based measure of investor sentiment and occupier sentiment.

Article
Publication date: 8 May 2017

Barry Haynes, Louise Suckley and Nick Nunnington

Open-plan office environments are considered to offer workplace productivity benefits because of the opportunities that they create for interaction and knowledge exchange, but…

7664

Abstract

Purpose

Open-plan office environments are considered to offer workplace productivity benefits because of the opportunities that they create for interaction and knowledge exchange, but more recent research has highlighted noise, distraction and loss of privacy as significant productivity penalties with this office layout. This study aims to investigate if the purported productivity benefits of open plan outweigh the potential productivity penalties.

Design/methodology/approach

Previous research suggests that office environments are experienced differently according to the gender and age of the occupier across both open-plan and enclosed configurations. Empirical research undertaken with office occupiers in the Middle East (N = 220) led to evaluations to establish the impact different offices had on perceived productivity. Factor analysis was used to establish five underlying components of office productivity. The five factors are subsequently used as the basis for comparison between office occupiers based on age, gender and office type.

Findings

This research shows that benefits and penalties to workplace productivity are experienced equally across open-plan and enclosed office environments. The greatest impact on perceived workplace productivity however was availability of a variety of physical layouts, control over interaction and the “downtime” offered by social interaction points. Male occupiers and those from younger generations were also found to consider the office environment to have more of a negative impact on their perceived workplace productivity compared to female and older occupiers.

Originality/value

The originality of this paper is that it develops the concept of profiling office occupiers with the aim of better matching office provision. This paper aims to establish different occupier profiles based on age, gender and office type. Data analysis techniques such as factor analysis and t-test analysis identify the need for different spaces so that occupiers can choose the most appropriate space to best undertake a particular work task. In addition, it emphasises the value that occupiers place on “downtime” leading to the need for appropriate social space.

Details

Journal of Corporate Real Estate, vol. 19 no. 2
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 9 March 2010

Jessica Niemi and Anna‐Liisa Lindholm

Corporate occupiers are among the important interest groups in the real estate business. The whole value network in the real estate sector, consisting of, e.g. developers…

2740

Abstract

Purpose

Corporate occupiers are among the important interest groups in the real estate business. The whole value network in the real estate sector, consisting of, e.g. developers, investors, and service providers depend on the occupier organizations and meeting their needs and preferences. The purpose of this paper is to investigate the methods applied by the parties in the real estate sector in identifying and evaluating office occupiers' needs and preferences regarding the physical, virtual, social as well as financial elements of the workplace.

Design/methodology/approach

Based on theme interviews with selected Finnish organizations, the applied methods for evaluating office occupiers' needs and preferences are analyzed and presented. The applicability of the methods is evaluated by a set of criteria based on a literature review and the interviewees' responses.

Findings

The paper presents an efficient and relevant evaluation of the applied methods in matrix form. Additionally, recommendations for the development of the methods are suggested.

Practical implications

Analyzing the occupiers' needs and preferences related to physical, virtual, social, and financial elements of offices requires applicable methods. The methods should enable the parties in the real estate sector to analyze the direction of the real estate markets as regards the different elements.

Originality/value

The paper provides a classification and analysis of the methods applied to identify office occupier organizations' needs and preferences. Suggestions for further development of the methods are presented enabling a comprehensive analysis of needs and preferences.

Details

Journal of Corporate Real Estate, vol. 12 no. 1
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 9 May 2016

Danielle Claire Sanderson and Victoria Mary Edwards

Corporate occupiers require offices and services which meet their business needs, while landlords must attract and retain occupiers to maximise occupancy and rental income. The…

2756

Abstract

Purpose

Corporate occupiers require offices and services which meet their business needs, while landlords must attract and retain occupiers to maximise occupancy and rental income. The purpose of this paper is to help landlords and property managers understand what aspects of property management matter most to corporate occupiers, so that they can achieve a mutually beneficial relationship.

Design/methodology/approach

This paper analyses interviews with 1,334 office tenants in the UK, conducted over an 11-year period, to investigate determinants of occupier satisfaction, loyalty and advocacy. Structural equation modelling and regressions are performed using respondents’ ratings of satisfaction with many aspects of occupancy as explanatory variables. The dependent variables include satisfaction with property management, value for money, overall occupier satisfaction, lease renewal intentions and occupiers’ willingness to recommend their landlord.

Findings

The aspects with most impact on occupiers’ satisfaction are the office building itself, its location and amenities, and also communication with their property manager, a belief that their business needs are understood and the property manager’s responsiveness to occupiers’ requests. Occupiers’ loyalty depends mainly upon feeling that their rent and service charges provide value for money, an amicable leasing process, the professionalism of their property manager and the corporate social responsibility of the landlord. “Empathy” is crucial to occupiers’ willingness to recommend their landlord, and clear documentation and efficient legal process improve occupiers’ perception of receiving “Value for Money”.

Research limitations/implications

The sample is skewed towards occupiers of prime office buildings in the UK, owned by landlords who care sufficiently about their tenants to commission studies into occupier satisfaction.

Practical implications

This research should help to improve the landlord – tenant relationship, benefitting the businesses that rent property and helping building managers understand where to focus their efforts to achieve maximum effect on occupier satisfaction, loyalty and advocacy.

Originality/value

There has been little academic research into the determinants of satisfaction of occupiers of UK commercial property. This large-scale study enables the most influential factors to be identified and prioritised.

Details

Journal of Corporate Real Estate, vol. 18 no. 2
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 1 February 2003

C. Leishman, N.A. Dunse, F.J. Warren and C. Watkins

This paper reports the results from the first stage of a research project that examines changes in urban office occupiers’ space requirements and their impact on the structure of…

2170

Abstract

This paper reports the results from the first stage of a research project that examines changes in urban office occupiers’ space requirements and their impact on the structure of urban office markets. The specific objectives of the project are to compare occupiers’ trade‐offs and preferences between submarkets in the Edinburgh market and to look at the way in which agents influence the process by which occupiers are matched to space in particular submarkets. The results discussed are based on two surveys: first we analyse a detailed survey of office occupiers in two office submarkets in Edinburgh; and second, office agents are surveyed. This allows us to compare their perception of occupiers’ space requirements with those expressed by respondent occupiers. The results suggest that agents’ knowledge of occupier preferences vary across submarkets and that, in particular, they are less well informed about occupiers’ preferences in non‐traditional submarkets.

Details

Journal of Property Investment & Finance, vol. 21 no. 1
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 April 2001

Peter Wyatt

Publishes some of the findings of a research project that examined whether valuers and valuations have a role in the provision of more strategic property advice to business…

1713

Abstract

Publishes some of the findings of a research project that examined whether valuers and valuations have a role in the provision of more strategic property advice to business occupiers. The research consisted of a postal questionnaire survey of over 250 businesses that examined the role of property and the use of valuations in strategic business decisions. The survey was supported by the findings from 18 structured interviews and an analysis of over 70 sets of company accounts. The results revealed that, despite valuers becoming increasingly involved in measuring corporate efficiency and valuations being used for this purpose, business occupiers do not recognise valuers in a strategic role. Instead, many firms see valuers as providing a single valuation service, the estimation of market value for purchase/sale decisions and corporate disclosure. The research suggests that valuations do have a role to play in the provision of more strategic business advice but the valuer will need to understand the client’s wider business needs and how property plays a part in the client’s business. Valuers need to convince clients that they are not overly technical in their outlook, have broad business skills that include strategic thinking and an awareness of business issues.

Details

Journal of Property Investment & Finance, vol. 19 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 6 March 2017

Danielle Claire Sanderson and Steven Devaney

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…

1654

Abstract

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.

Details

Journal of Property Investment & Finance, vol. 35 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 27 February 2019

Le Ma, Richard Reed and Jian Liang

There has been declining home ownership and increased acceptance of long-term renting in many western countries including Australia; this has created a problem when examining…

Abstract

Purpose

There has been declining home ownership and increased acceptance of long-term renting in many western countries including Australia; this has created a problem when examining housing markets as there are dual demand and include both owner-occupiers and investors. The purpose of this paper is to examine the long-run relationship between house prices, housing supply and demand, and to estimate the effects of the two types of demand (i.e. owner-occupier and investor) on house prices.

Design/methodology/approach

The econometric techniques for cointegration with vector error correction models are used to specify the proposed models, where the housing markets in the Australian states and territories illustrate the models.

Findings

The results highlight the regional long-run equilibrium and associated patterns in house prices, the level of new housing supply, owner-occupier demand for housing and investor demand for housing. Different types of markets were identified.

Practical implications

The findings suggest that policies that depress the investment demand can effectively prevent the housing bubble from further building up in the Australian states. The empirical findings shed light in the strategy of maintaining levels of housing affordability in regions where owner-occupiers have been priced out of the housing market.

Originality/value

There has been declining home ownership and increased acceptance of long-term renting in many western countries including Australia; this has created a problem when examining housing markets as there are dual demand and include both owner-occupiers and investors. This research has given to the relationship between supply and dual demand, which includes owner-occupation and investment, for housing and the influence on house prices.

Details

Journal of Property Investment & Finance, vol. 37 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 14 March 2019

Samson Oluseun Ojekalu, Olatoye Ojo, Timothy Tunde Oladokun and Sumoila Aremu Olabisi

Although a substantial amount of research on the effect of demographics on service quality perception can be found in the extant literature, practitioners and researchers in the…

Abstract

Purpose

Although a substantial amount of research on the effect of demographics on service quality perception can be found in the extant literature, practitioners and researchers in the built environment, especially property managers, know little or nothing about the influence of demographic characteristics on service quality in Nigeria. Hence, the purpose of this paper is to examine the effect of demographic variables of the occupiers of shopping complexes on the perception of service quality of property managers.

Design/methodology/approach

Primary data were used for the study through questionnaire administration. Ibadan was stratified into five axes using existing major roads where shopping complexes were highly concentrated. Based on the Oyo State Ministry of Land, Housing and Survey (2017) database, there were 33, 65, 48, 64 and 66 shopping complexes on each identified major road. A systematic sampling technique was adopted to select 57 (20 per cent) out of 276 shopping complexes and 192 (10 per cent) out of 1,919 occupiers of the shopping complexes in the study area. In total, 157 occupiers responded to the questionnaire, and data were analysed using mean, independent t-test, and one-way ANOVA.

Findings

The study found that the gender and education of the occupiers significantly influenced service quality perception, whereas the age of the respondents was insignificant. Specifically, female occupiers rated the service quality of property managers better than their male counterparts. Through η2, the effect size of gender on service quality perception was small (17 per cent) and effect size on the level education of the occupiers was also small (13 per cent). The age of occupiers did not significantly influence service quality perception. It is expected that the findings of this study will help property managers to understand the effect of various demographic variables on service quality perception for enhanced property management practice.

Practical implications

The findings suggested that the property managers of shopping complex should structure their services to best accommodate occupiers’ demographics. Moreover, property managers can use the findings to guide demographic-driven marketing strategy to target and attract more tenants efficiently.

Originality/value

The study is one of the few studies that examined the effect of the demographic characteristics of occupiers on service quality perception that could enhance given individualised attention to occupiers.

Details

Property Management, vol. 37 no. 3
Type: Research Article
ISSN: 0263-7472

Keywords

1 – 10 of over 2000