Search results
1 – 10 of 185Berndt Allan Lundgren, Cecilia Hermansson, Filip Gyllenberg and Johan Koppfeldt
The purpose is to increase knowledge of rent negotiations by investigating differences in beliefs held by property landlords and retailers on factors that they deem important in…
Abstract
Purpose
The purpose is to increase knowledge of rent negotiations by investigating differences in beliefs held by property landlords and retailers on factors that they deem important in rent negotiation.
Design/methodology/approach
This study investigates differences in subjective beliefs held by landlords and retail trade tenants on factors that affect rent levels during the rent negotiation process using a factor analysis approach. Semi-structured interviews were made with seven large real estate owners/landlords and retailers and eight experts in negotiating retail rent to elicit variables that have an impact on retail rent. Thereafter, a web-based survey was sent to 421 respondents who had experience in rent negotiation. Several factors were extracted using factor analysis. The data collection was made in Sweden during the coronavirus disease 2019 (COVID-19) pandemic in late spring 2021
Findings
Significant differences are found in beliefs held by landlords and retail trade tenants in four out of seven-factor: regional growth, e-commerce, customer focus and trust. Landlords rate these factors higher than retailers do. There are also systematic differences between landlords and retailers depending on their education levels on the following factors: rent and vacancies, e-commerce and customer focus. The number of years of experience did not prove to be significant instead differences are found to exist in factors
Research limitations/implications
Not only do traditional factors of importance, such as lease structure, the effect of location, size and anchor or non-anchor tenants, have an effect on negotiated rent levels. Differences in other factors also exist, such as regional growth, e-commerce, customer focus and trust factors that may play an important role in the negation of retail rent.
Practical implications
The findings provide new insights into the different views on factors that affect rent negotiations between landlords and retail tenants. Knowledge of such differences may increase the overall transparency in the negotiation process. Transparency may be increased by putting forward information on these factors before a negotiation takes place, in order to smooth differences in their beliefs.
Social implications
If transparency in the negotiation process of retail rent increases, time to reach an agreement, stress and anxiety can be reduced by putting forward information on factors where differences exist between landlords and retailers
Originality/value
New insights on retail rent negotiation have been put forward in this research paper. Not only do traditional factors such as lease structure matters, but subjective beliefs on factors such as regional growth and the level of education are also important, as this study has shown using a factors analysis approach.
Details
Keywords
The purpose of this paper is to investigate how the pandemic affects tenants’ response to their lease obligations. This paper commences with examining the adopted tenant selection…
Abstract
Purpose
The purpose of this paper is to investigate how the pandemic affects tenants’ response to their lease obligations. This paper commences with examining the adopted tenant selection criteria during the COVID-19 pandemic. Then, this paper statistically tests if there is a relationship between selection criteria and response on whether the pandemic has effects or not. Then, this paper investigates the specific areas of impact on tenants’ ability to adequately keep to lease agreements in the Nigerian rental market. Finally, this paper proceeds to confirm if there is a relationship between selection criteria and the aspects of tenants’ deficiencies in rental obligations because of COVID-19.
Design/methodology/approach
Survey data, backed with interviews, is elicited from practicing estate surveyors and valuers and licensed property managers in Lagos, the largest property market in Nigeria and sub-Sahara Africa. Policy solutions and implications were solicited from personnel at the ministry of housing and senior professionals in the property sector. Data were analyzed using descriptive statistics, factor analysis and computer-aided qualitative data analysis, Atlas.ti.
Findings
Tenant’s health status is now accorded a priority together with others. Numbers of tenants are challenged with keeping to the prompt-rent-payment rule. Other areas of slight breaches included livestock rearing, subletting, alteration and repair covenants. Except for tenant reputation and tenant family size, there was no significant relationship between tenant’s health status consideration and the COVID-19 effect on tenant non-compliance with lease obligation. Tenants’ non-compliance with tenancy obligations has a connection with the tenants’ affordability, reputation, ability to sign an undertaking and health conditions during the pandemic. This paper recommends rental housing policy review.
Practical implications
It is recommended that the rental policy should be reviewed to give room for rental allowance or palliatives, private rental market regulation, exploration of the national housing fund and, if possible, social housing adoption policy in Nigeria.
Originality/value
This paper draws policymakers’ attention to the need to prepare for the future safety net that caters to citizenry welfare in challenging times.
Details
Keywords
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.
Details
Keywords
Peter Karpestam and Peter Palm
The authors investigate how prices of condominiums are affected by the size of the tenant-owner associations that they belong to.
Abstract
Purpose
The authors investigate how prices of condominiums are affected by the size of the tenant-owner associations that they belong to.
Design/methodology/approach
The authors use data of sold apartments in the Swedish municipality Malmö 2013–2018 and estimate hedonic price regressions. The authors also perform semi-structured interviews with three senior professionals in real estate companies.
Findings
The authors find significantly negative relationships between the prices of condominiums and the size of tenant-owner associations. Also, regression results indicate that associations should be no smaller than 6–10 apartments. The interviews support that associations should not be too small or too big. The lower and upper limit was suggested by the respondents to 40–50 and 80–150 apartments, respectively. In these ranges, economies of scale can be achieved, and residents will not lose the sense of community and responsibility.
Research limitations/implications
The authors do not prove causality. Smaller associations may have relatively exclusive common amenities, about which we lack data. The same relationships may not exist in different market conditions.
Originality/value
The authors are not aware of previous studies with the same research question. The size of tenant-owner associations may affect the price through different channels. First, several of the banks in Sweden do not always grant mortgages for condominiums that belong to small associations. Second, larger associations may have better economies of scale and more efficient property management. Third, homeowners may prefer smaller tenant-owned associations, because they may feel less anonymous and provide more influence on common amenities.
Details
Keywords
Sami Ullah, Abdul Sami, Tooba Ahmad and Tariq Mehmood
Technology parks (TPs) are used as a tool to improve economic outlook of the region through innovation generation. This study aims to evaluate the perception of tenants of TPs to…
Abstract
Purpose
Technology parks (TPs) are used as a tool to improve economic outlook of the region through innovation generation. This study aims to evaluate the perception of tenants of TPs to determine the gap in the expectation and identify types of firms preferring to locate in a TP.
Design/methodology/approach
This is the first study in Pakistan to collect data about perceived benefits of TPs in Pakistan from the decision-makers of 110 tenant firms. The cluster analysis and lift ratios are used to draw statistical inferences.
Findings
The firms can be classified into three clusters – commercial-orientation firms, science and technology-oriented firms and young tech firms – with distinct needs for survival and growth in a TP. Moreover, TPs should not just be treated as property projects for providing support services, also knowledge sharing, training and development opportunities and proximity to hubs of knowledge and markets is vital to attract a variety of industry.
Originality/value
Academia and policymakers have been equally interested in the potential impacts of these innovation hubs. However, there have been lack of empirical evidence on how and what to offer the incumbents of these TPs. The government of Pakistan is trying to build more TPs for promoting business activities under CPEC. Therefore, it is extremely important to determine the needs of tenants of TPs for successful utilization of huge amount of public money to be invested in TPs.
Details
Keywords
Kay Rogage, Adrian Clear, Zaid Alwan, Tom Lawrence and Graham Kelly
Buildings and their use is a complex process from design to occupation. Buildings produce huge volumes of data such as building information modelling (BIM), sensor (e.g. from…
Abstract
Purpose
Buildings and their use is a complex process from design to occupation. Buildings produce huge volumes of data such as building information modelling (BIM), sensor (e.g. from building management systems), occupant and building maintenance data. These data can be spread across multiple disconnected systems in numerous formats, making their combined analysis difficult. The purpose of this paper is to bring these sources of data together, to provide a more complete account of a building and, consequently, a more comprehensive basis for understanding and managing its performance.
Design/methodology/approach
Building data from a sample of newly constructed housing units were analysed, several properties were identified for the study and sensors deployed. A sensor agnostic platform for visualising real-time building performance data was developed.
Findings
Data sources from both sensor data and qualitative questionnaire were analysed and a matrix of elements affecting building performance in areas such as energy use, comfort use, integration with technology was presented. In addition, a prototype sensor visualisation platform was designed to connect in-use performance data to BIM.
Originality/value
This work presents initial findings from a post occupancy evaluation utilising sensor data. The work attempts to address the issues of BIM in-use scenarios for housing sector. A prototype was developed which can be fully developed and replicated to wider housing projects. The findings can better address how indoor thermal comfort parameters can be used to improve housing stock and even address elements such as machine learning for better buildings.
Details
Keywords
Pauli Autio, Lauri Pulkka and Seppo Junnila
The aim of this paper is to introduce a framework that helps to identify strategic themes on which real estate investors form their strategies. A holistic approach to strategic…
Abstract
Purpose
The aim of this paper is to introduce a framework that helps to identify strategic themes on which real estate investors form their strategies. A holistic approach to strategic management in real estate management has enjoyed popularity in corporate real estate research, while similar research has been lacking from the investor-based real estate management.
Design/methodology/approach
The research design consists of two main parts: 1) formulating propositions based on existing literature and 2) attempting to validate the propositions through a qualitative interview study with major real estate owners in Finland.
Findings
The main finding is that the current real estate investors reflect the transient nature of competitive advantages and assess their strategies accordingly. The companies consider the traditional profitability and revenue growth aspects of their business but also a more long-term future growth dimension. As an outcome, the investors base their strategies on eight strategic themes which are “Innovation”, “ESG”, “Marketing and sales”, “Financial management”, “Leasing management and tenant satisfaction”, “Competitive environment and portfolio management”, “Outsourcing and strategic partnerships” and “Cost and operation optimization”.
Research limitations/implications
This paper opens opportunities for future research concerning different strategies in real estate investment business and their impacts.
Practical implications
The presented framework provides support for real estate investors to create real estate management strategy or to evaluate their current strategy and to recognize operational actions and decisions that are relevant for their strategy.
Originality/value
This paper provides an extension to corporate real estate (CRE) literature by showing that the CRE theories are adaptable to real estate investment and provide value for their strategic management. This paper also contributes to real estate investment literature by providing a well-founded and empirically contested strategic management framework, the IREM framework, for identifying strategic themes on which real estate investors form their strategies.
Details
Keywords
Marie-Therese Christiansson and Olof Rentzhog
Despite many efforts within organizations toward business process orientation (BPO), research on real-world experiences remains in its infancy. The purpose of this paper is to…
Abstract
Purpose
Despite many efforts within organizations toward business process orientation (BPO), research on real-world experiences remains in its infancy. The purpose of this paper is to redress the existing knowledge gap by analyzing a Swedish public housing company that has made notable effects regarding BPO and to explore lessons learned from the BPO journey (from 1998 to 2013).
Design/methodology/approach
The point of departure is principles in the BPO foundation, principles of successful BPM and effects in empirically based literature. The reconstruction of the narrative case study describes milestones and critical junctions, as well as effects based on quantitative and qualitative data.
Findings
Effects in BPO are demonstrated in terms of higher customer satisfaction, increased innovative ability, improved operational performance, higher employee satisfaction and, as a result of these, increased profitability. Theoretical constructs with implications for the theory building on BPO are suggested in a three-layer management framework – with capabilities and abilities emerging from the case study used as an illustrative example.
Practical implications
Lessons are learned regarding critical practices related to advancement in BPO. A strategy-building process based on eight design propositions is suggested to define the pre-conditions for BPO in an organization.
Originality/value
This is the first longitudinal case study to provide a comprehensive view and detailed insights of a BPO journey and top management performance toward a business process-oriented organization. Practitioners and BPM community get valuable insights into how the temporality and the context shape the BPO maturity process in terms of new organizational structure and roles during the journey.
Details
Keywords
This paper aims to test two hypotheses related to the supposedly negative impact of rent control on residential mobility: the mobility of renters is, first, negatively related to…
Abstract
Purpose
This paper aims to test two hypotheses related to the supposedly negative impact of rent control on residential mobility: the mobility of renters is, first, negatively related to how attractive their residential areas are and, second, relatively high for renters living in properties built after 2005.
Design/methodology/approach
This paper estimates logit and multinomial logit regressions and models household moves. The multinomial logit regressions separate between short- and long-distance moves and between moves to rentals and to owned dwellings. This paper uses the “relative income” of the tenants’ residential areas to proxy area attractiveness. This paper estimates regressions for entire Sweden and the three largest “commuting” regions and municipalities, respectively.
Findings
The full sample provides support of both hypotheses in all regressions. Hypothesis one gets stronger support for moves to other rentals than moves to owned dwellings but about equally strong support for short- and long-distance moves. Hypothesis one obtains strongest support in Gothenburg municipality while hypothesis two obtains strongest support in the Malmö region. Also, hypothesis two obtains stronger support for short-distance moves than long-distance moves and slightly stronger support for moves to owned dwellings than those to rented dwellings.
Research limitations/implications
This paper does not estimate “how much” rent control affects mobility, and results cannot be used to design specific rent setting policies. Results may be sensitive to how different types of moves are defined.
Practical implications
Efforts to reform rent setting policies in Sweden are encouraged.
Originality/value
To the best of the author’s knowledge, this paper’s two hypotheses are not tested before in Sweden and can be tested without control groups.
Details
Keywords
Jonas Hahn, Jens Hirsch and Sven Bienert
The purpose of this paper is to investigate the role of distinct types of heating technology and their price impact in German residential real estate markets, considering a wide…
Abstract
Purpose
The purpose of this paper is to investigate the role of distinct types of heating technology and their price impact in German residential real estate markets, considering a wide range of other housing market determinants. The authors aim to test and to verify specifically, whether the obsolescence of heating technology leads to a significant price discount and whether higher technological standards (and environmental friendliness) come with a price premium on the market.
Design/methodology/approach
The authors create housing market models for rental and sales segments by constructing generalized additive models with explicit multi-layered spatial components. To elaborate a profound and contemporary answer using these models, the authors perform large-sample regression analyses based on more than 400,000 observations covering German residential properties in 2015.
Findings
First and foremost, the heating system indeed shows significant explanatory importance for measuring housing rents and purchasing price. Second, the authors find that it makes a difference whether clean “green” technologies are implemented or whether “brown” systems with obsolete technology or fossil energy sources is on hand. Ultimately, the authors conclude that while low energy consumption indeed comes with a price premium, this needs to be interpreted together with the property’s heating type, as housing markets seem to outweigh the “green premium” by “brown discounts” if low energy consumption figures are powered by a certain type of heating technology system.
Research limitations/implications
Aside of a possible omitted variable bias, the main research limitation is constituted by the integration of asking prices in the analysis, as actual transaction prices are not systematically transparent on national level in Germany. Limitations are discussed at the end of the paper.
Practical implications
This work supports investors who face the challenge of making environmental- and energy-related decisions as well as appraisers who deliver financial fundamentals for such. Third, the paper supports both asset managers as well as investment strategists in argumentation pro-environmental investments beyond all ecological necessity.
Social implications
This paper contributes to the current discussion on climate change and the eclectic role of real estate in this context. The authors deliver evidence on pricing effects as a measure of socioeconomic acceptance of progressive heating technology and environmental friendliness as an imperative of twenty-first century societies.
Originality/value
This is the first study on “green premiums” or “brown discounts” that includes heating technology as a potential and distinct driver of value and rents. It is a contemporary contribution and delivers original information on the quantitative impact of contemporary and anachronistic technology in heating to researchers as well as investors and appraisers.
Details