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The paper aims to estimate the effect of energy efficiency on the Market Value of office buildings and consider whether this effect increases over time.

The authors analyze a dataset of office building valuations from 2009 to 2011, provided by the German Investment Property Database. The authors use hedonic regression models to determine the effect of energy efficiency and energy consumption on Market Values. Using generalized additive models (GAM) for modeling nonlinear covariate effects, the authors control for further building characteristics and location. Due to the small sample size, the authors introduce an innovative econometric approach that mitigates this problem.

Mainly due to the small sample size, and in spite of the newly developed econometric methodology, the authors do not find clear evidence of the relationship between energy efficiency and the Market Value. However, the study nonetheless provides interesting insights into the composition of office building Market Values in Germany.

In addition to the empirical results for the German office market, the main contribution of this paper lies in the econometric methodology. Beside the application of cutting-edge statistical techniques, the authors develop a method for handling datasets, for which the variable of interest is rarely observed, leveraging on the total available data. Thus, the methodology offers promising prospects for future research in similar settings.

The purpose of this paper is to investigate the role of spatial dependency in the construction of a price index for the transactions of whole office buildings. It examines transactions of office buildings over a 15-year period and addresses an under-researched area in investment property analysis.

The study examines data relating to transactions of all office buildings in the Melbourne (Australia) central business district between 2000 and 2015. The methodology uses a spatial weights matrix to construct a hedonic model, spatial error model, spatial lagged model and an office building transactional price index.

The findings confirm the existence of spatial dependency for the transactions of office buildings. In addition, incorporating the effect of spatial dependency by constructing spatial error and spatial lagged model improved the accuracy of the estimated transactional price index for office buildings.

These findings make an important contribution to the literature by highlighting the importance of the issue of spatial autocorrelation in the estimation of valuation models and price indexes for office buildings. Until now the focus has predominantly been on individual office units rather than whole office buildings, where the barrier has traditionally been access to comprehensive data. The analysis did not consider leasing details as this information is not accessible in the Australian market.

The research will assist stakeholders including valuers, investors and market regulators to improve their understanding of movements in the office property transactional market. The findings provide an insight into trends associated with the transfer of office buildings. It will assist future decisions about the location of a new office building developments in order to optimise their proximity to transport and other buildings.

The study will assist planners to ensure the location of office buildings are optimised from a social sustainability perspective. This equates to buildings located in close proximity to transport facilities and also supporting the development of office buildings in locations, which are associated with lower future risk.

The construction of an accurate and reliable property index is critically important for practitioners to understand the movement in both the property market and also in the broader economy. A substantial increase in whole office building acquisitions has been observed in recent years, especially after the 2007 Global Financial Crisis (Lizieri and Pain, 2014) although there has remained limited research undertaken in this area.

The purpose of this paper is to simulate possoble scenarios of São Paulo’s office market recovering. In 2006, a previous paper that dealt with the same issue was published which the authors propose to analyse here. After eight years, the São Paulo office market is starting a new phase within its cycle. Then, the first part of this paper, as in Rocha-Lima and Alencar (2006), describes the economic scenario in which investment decisions are made for developing office buildings in the Brazilian market. Afterward, the authors simulated both the necessary period of time for investments in the São Paulo office market to recover attractiveness and time for the increase in the occupation rate to absorb the current vacant spaces.

These simulations were carried out using simple linear regressions models using the Brazilian gross domestic product (GDP) as explanatory variable to prices and vacancy rates dependent ones.

The authors have found that the vacant space can be fully re-occupied in the beginning of 2021 or mid of 2022, according to the GDP growth rate, and, from this moment on, the demand for new spaces may grow, and, moreover around 2019, investments may become attractive again in this market.

This paper offers an alternative approach for estimating office building scenarios, especially when the database of the market is scarce. It also permits to evaluate an investment strategy for emerging markets within next years, particularly in São Paulo, Brazil.

The vacancy of office buildings leads to financial problems for the owners and social problems for the community, e.g. vandalism, dereliction and deterioration. A solution may be found through the conversion of vacant office buildings into housing. Vacancy‐threatened buildings are often part of the mediocre part of the building stock. Does conversion make sense in this case? What are the opportunities, threats and risks? What are the critical success factors? The purpose of this paper is to discuss financial, functional, structural, technical and aesthetic issues.

Through previous research at the Delft University of Technology, tools are developed to decide the potential for the conversion of buildings. This paper discusses the risks and chances, and brakes and triggers of transformation projects, based on case studies. These case studies are performed through interviews with professionals involved in the transformation process and through analyses of architectural drawings of the before and after situations. For each project two interviews were held, with the architect and the developer or client. The interviews focussed on the process of the transformation projects.

The conversion of nondescript and unarticulated buildings makes sense from the point of view of sustainability, both ecologically and in an urban regeneration context. These projects will only be interesting for developers of commercial real estate if they can be made economically feasible. Social housing associations also have additional social goals. Through a longer investment perspective these associations can wait for property increases through long‐term externalities as result of upgrading of the area. In buildings that are kept because of economical or social feasibility there are strong connections between the target group, the location and the conversion costs.

The tools developed have proved to be useful for quick scans of the potential for building conversion. This paper is a first step in trying to depict a more detailed view of the risks and chances of building conversions. Knowledge of the risks and chances of conversion is required to make decisions concerning transformation projects.

The paper develops knowledge about transformation projects and decision support tools for the conversion of buildings, based on empirical studies.

The built environment is a major source of carbon emissions. However, 80 per cent of the damage arises through the operational phase of a building’s life. Office buildings are the most significant building type in terms of emission-reduction potential. Yet, little research has been undertaken to examine the barriers faced by building operators in transitioning to a green operation of the office buildings in their care. This study aims to identify those barriers.

Building facilities managers with between 7 and 25 years’ experience in operating primarily Melbourne high-rise office buildings were interviewed. The sample was taken from LinkedIn connections, with ten agreeing to participate in semi-structured interviews – out of the 17 invitations sent out. Interview comments were recorded, coded and categorised to identify the barriers sought by this study.

Seven categories of barriers to effecting green operation of office buildings were extracted. These were financial, owner-related, tenant-related, technological, regulatory, architectural and stakeholder interest conflicts. Difficulties identifying green operation strategies that improved cost performance or return on investment of buildings was the major barrier.

Government, policymakers and facilities managers themselves have been struggling with how to catalyse a green transition in the operation of office buildings. By identifying the barriers standing in the way, this study provides a concrete point of departure from which remedial strategies and policies may be formulated and put into effect.

The uptake of green operation of office buildings has been extremely slow. Though barriers have been hypothesised in earlier works, this is the first study, to the best of the authors’ knowledge, that categorically identifies and tabulates the barriers that stand in the way of improving the green operational performance of office buildings, drawing on the direct knowledge of facilities experts.

The purpose of this paper is to identify the preferred communication channels to foster energy conservation behaviour among office building users. Energy demand from the commercial sector in Malaysia is, at 33.2 per cent, the highest after the industry sector, at 45.1 per cent. The country’s progress in actively practising energy conservation is lacking, despite various energy conservation programmes having been launched in recent years. A large amount of energy is wasted by users’ poor energy conservation behaviour. To market voluntary energy conservation behaviour, the delivery of energy conservation messages using the appropriate communication channels remains an important strategy.

This paper involves two-stage data collection. The communication categories associated with a set of channels identified from expert interview serve as the basis for the second stage of empirical data gathering using conjoint analysis. A choice-based conjoint analysis assisted by Sawtooth Software is used to analyse the 525 usable empirical data gathered from a final questionnaire survey among the office building users in Malaysia.

This paper has identified five communication categories associated with a total of 19 channels. The mass media is acknowledged as the most preferred communication channel among office building users in the marketing of energy conservation behaviour, while the least preferred channel to communicate energy conservation information is audio-visual media.

This study contributes to existing literature with a novel case in Malaysia office building by identifying the preferred combination of communication channels in fostering energy conservation behaviour. The findings could benefit the building managers in marketing energy conservation behaviour among office building users to effectively achieve the desired change for sustainable development.

A research study was recently carried out at the Technical University (TU) in Delft into the renovation of office buildings in the Netherlands. Renovation is defined as follows: ‘Structural technical intervention in or on a building, by means of which the building is adapted to new functional and technical quality requirements, without the original functional purpose being changed.’ In this context, renovation must not be confused with redevelopment. In redevelopment, large parts or even the whole supporting structure may be demolished and the original functional purpose may well be changed. As a first step in the research, on the basis of the available literature, an inventory is made of the quantity (square metres of floor surface area) and the quality of the Netherlands stock of office buildings. This literature research reveals that no reliable quantitative and qualitative data about the volume of the stock are available. The research also made it clear that no data are available with respect to the number of renovation projects, the amount of money involved and the reasons for renovating offices in the Netherlands. To address this knowledge gap, the TU Delft undertook a renovation project analysis and involved a large group of principal clients commissioning projects, project developers and architects. The results presented in this paper are interesting for academics, policy makers and practitioners in and outside the Netherlands. International literature research by the author did not bring in new insights. Readers with knowledge of similar research abroad are invited to contact the author via e‐mail.

The objectives of this study, which was carried out in the second half of 1986, were to establish the recent value of office refurbishment work, the area of refurbished floor space generated and its broad geographical distribution; to assess the resultant market for contractors' and consultants' services and for major products and product groups; to highlight the factors both encouraging and discouraging office refurbishment and to project its likely future development. The research comprised both personal interviewing and postal questionnaire programmes and the analysis of much published data on both office refurbishment and new building projects. It was commissioned by Touche Ross.

According to normative‐rational investment decision models, investors who seek office buildings should select markets which show high employment numbers in office related sectors such as Finance, Insurance, Real Estate (FIRE) and Knowledge Intensive Business Services (KIBS). This view is challenged by behavioural studies, which find that the investors' willingness for analysis and the structure of their decision‐making processes in practice notably limit such an influence. Looking at German office markets, the purpose of this paper is to explore to what extent the aforementioned connection between employment structure and market selection holds.

Qualitative interviews with German investment experts are analysed in a manner that differentiates between investor types. Behavioural economics form a theoretical basis to identify investor type specific attitudes towards investment markets and the resulting market selection processes. The findings are tested by logistic regressions which connect the spatial structure of office investments with employment data.

A sector‐specific employment structure does not have a direct but an indirect influence on the market selection. The existing theoretical contradiction is resolved by this indirect influence. Investor type specific risk profiles and business models determine varying spatial patterns of market selection.

The study shows that attitudes towards markets, business logics and decision processes differ between insurance companies and open‐ended funds. Researchers should be aware that empirical results may not always be valid for all institutional investors. In some cases a differentiating research design according to investor type may be necessary.

The study identifies a set of minimum requirements with regard to building and market characteristics open‐ended funds use for filtering in German secondary/regional markets. Market selection by these funds and insurance companies correlates with relative employment in FIRE‐ and KIBS‐branches.

This paper overcomes decision‐theoretical contradictions and gives empirical evidence for the importance of the employment structure on market selection.

The office market in São Paulo has been in recession since the year 2000. This situation came up due to two main factors: [i] the very aggressive attitude of developers during the period that comprises the year 1999 until 2000. At that time there was a very strong perception among investors that a new expansion era for new office buildings in São Paulo was about to begin and, moreover the Brazilian economy had started its recovery; [ii] The intense retraction of the Brazilian economy along with the political transition in 2002, which was mainly caused by the deterioration of the expectations in relation to the economic policies that would be performed by the new government.The recovery of the economic activity in the office building market firstly depends on the macroeconomic growth in Brazil and within the São Paulo metropolitan area. On the other hand, the expansion of the activity in the office buildings sector relies not only on the developers’ expectations of how and when the current vacant units will be rented, but also on the potential risk‐return composition of new buildings to be developed in the next years. This paper describes the economic scenario in which investment decisions to build new office buildings for rent in our local market are made and we also simulated both the necessary period of time for investments in the São Paulo office market to recover attractiveness and the time interval for the increase in the occupation rate absorb the actual vacant spaces. These simulations have taken place based on projections for the Brazilian GNP increase and they showed that for an annual increment of 4.5%, in 3 years could be reached both, attractiveness for new investment and occupation of vacant areas. For a 2.0% annual growth, the absorption of vacant spaces will take 4 years from now and new investment would be attractive only in 2012. Besides, we discuss the market prices fluctuations on the inflexion point where the transition from one phase of the real estate cycle (recession‐non attractiveness) to another (recovery‐attractiveness) occurs.