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Reports on a survey which asked 82 experienced managers from various functions, business levels, and industries to value case studies which were in effect real options on growth. Compares these empirical valuations with theoretical values derived from a specific real options model (European non‐dividend paying). In a questionnaire survey, participating managers showed high levels of agreement with various statements needed as assumptions in the real options model. They also accepted as realistic most of the parameter settings used in the experiment. Results imply that training is needed and likely to be acceptable to managers, and underinvestment could be explained by an inability to perceive option values. Choosing teams of decision makers may reduce the variance (but not the bias) of intuitive option valuations.

Uncertainties in residential property investment performance require that real estate assets are designed in a flexible manner to respond to impacts of market dynamics. Though estimating the cost of flexibility is straightforward, assessing the economic value of flexibility is not. The purpose of this study is to explore the potential practical application of real option analysis to determine the economic value of a switching output flexibility embedded in a residential property investment in Australia. The study involves the exploration of an optimal strategy for investment in a residential development through real option analysis and valuation of a mixed use investment.

The real option valuation model developed by McDonald and Siegel (1986) is adopted for the evaluation because the switching output flexibility is likened to a perpetual American call option with dividend payout.

Through real option analysis, the economic value of switching output flexibility of the mixed use building was determined to be higher than the initial upfront costs. Moreover, a payoff of about $4million was determined to be the value of the switching output flexibility, therefore justifying upfront investments in flexibility as an uncertainty and risk management tool.

This application is an important demonstration of the practical use of options pricing techniques (real options analysis) and delivers further evidence needed to support the adoption of real option valuation in practice. Flexibility can also enhance risks and uncertainty management in residential property investment better than the adjustment of discount rates.

There is limited evidence on the use of real options techniques for the valuation of switching output flexibility in practice, and this comes as an original application; both the case study and data are all initial applications of switching flexibility in the Australian property market.

The purpose of this paper is to illustrate the extent to which a case study developed by a financial institution and completed within a collaborative learning environment can be used to develop soft skills.

A questionnaire research instrument comprising open and closed response questions was used to collect the data.

The case study developed by the external stakeholder was found to be useful in developing soft skills. The primary skills identified by respondents were decision-making, problem-solving, critical thinking, communication and research ability. However, the respondents believed that the collaborative learning element had the greatest impact on the development of skills, particularly ethical behaviour, professionalism and personal attributes.

The results are not generalisable beyond the scope of the particular higher education institution in which the study was conducted and the country in which the study was situated. Additionally, this paper measured soft skills development through perceptions of participating students. An objective measurement of students’ immediate soft skills improvement is not considered. Nonetheless, the findings provide guidance to educators on how a case study developed by a financial institution and completed within a collaborative learning environment can be used to develop soft skills.

The paper makes three contributions. The first is to detail how a real-world case study with a substantial technical component can be used to develop soft skills. Second, the paper contributes to the real-world case study and collaborative learning elements literature and ascertains the effectiveness of both methods in developing various soft skills. Finally, the paper contributes to the limited literature on how external stakeholders can become involved in the development of accounting curriculum content.

Despite the opportunities of digital twins (DTs) for smart buildings, limited research has been conducted regarding the facility management stage, and this is explained by the high complexity of accurately representing and modelling the physics behind the DTs process. This study thus organises and consolidates the fragmented literature on DTs implementation for smart buildings at the facility management stage by exploring the enablers, applications and challenges and examining the interrelationships amongst them.

A systematic literature review approach is adopted to analyse and synthesise the existing literature relating to the subject topic.

The study revealed six main categories of enablers of DTs for smart building at the facility management stage, namely perception technologies, network technologies, storage technologies, application technologies, knowledge-building and design processes. Three substantial categories of DTs application for smart buildings were revealed at the facility management stage: efficient operation and service monitoring, efficient building energy management and effective smart building maintenance. Subsequently, the top four major challenges were identified as being “lack of a systematic and comprehensive reference model”, “real-time data integration”, “the complexity and uncertainty nature of real-time data” and “real-time data visualisation”. An integrative framework is finally proposed by examining the interactive relationship amongst the enablers, the applications and the challenges.

The findings could guide facility managers/engineers to fairly understand the enablers, applications and challenges when DTs are being implemented to improve smart building performance and achieve user satisfaction at the facility management stage.

This study contributes to the knowledge body on DTs by extending the scope of the existing studies to identify the enablers and applications of DTs for smart buildings at the facility management stage and the specific challenges.

The purpose of this study is first to evaluate whether real options analysis (ROA) is suitable for valuing green building certificates, and second to calculate the real option value of a green certificate in a typical office building setting. Green buildings are demonstrated as one of the most profitable climate mitigation actions. However, no consensus exists among industry professionals about how green buildings and specifically green building certificates should be valued.

The research design of the study involves a theoretical part and an empirical part. In the theoretical part, option characteristics of green building certificates are identified and a contemporary real option valuation method is proposed for application. In the empirical part, the application is demonstrated in an embedded multiple case study design. Two different building cases (with and without green certificate) with eight independent cash flow valuations by eight industry professionals are used as data set for eight valuation case studies and analyses. Additionally, cross-case analysis is executed for strengthening the analysis.

The paper finds that green certificates have several characteristics similar to real options and supports the idea of using ROA in valuing a green certificate. The paper also explains how option pricing theory and discounted cash flow (DCF) method deal with uncertainty and what shortcomings of DCF could be overcome by ROA. The results show that a mean real option value of 985,000 (or 8.8 per cent premium to the mean property value) was found for a Leadership in Energy and Environmental Design Platinum certificate in the Finnish property market. The main finding of the paper suggests that the contemporary real option valuation methods are appropriate to assess the monetary value and the uncertainty of a green building certificate.

This is the first study to argue that option-pricing theory can be used for valuing green building certificates. The identification of the option characteristics of green building certificates and demonstration of the ROA in an empirical case makes questions whether the current mainstream investment analysis approaches are the most suitable methods for valuing green building certificates.

This paper aims to analyze how a real estate business model innovation developed in a real estate network, with a special focus on the relationship between ego network structure and the innovative development of the business model.

The paper is a single case study of a Swedish real estate network of 38 actors. The data were collected at the individual actor level using multiple sources: 12 semi-structured in-depth interviews, 94 min of meetings and 28 written contracts. The empirical findings resulted in four propositions.

This study demonstrates that it was primarily the building user who was behind the innovative development of the real estate business model innovation, whereas the real estate company acted as a network hub and network resource coordinator. The ego network structures significantly affected the outcome.

Real estate companies should act as hubs, coordinating all the network actor resources the building user needs in the value-creation process. To be effective hubs, the representatives of real estate companies must create extensive personal and open ego networks to acquire central network positions.

Few studies examine business model innovation, particularly in the real estate context. Though large real estate businesses usually operate in the networks of various actors, analyses based on the network perspective are also lacking. This case study builds a valuable understanding of how network processes in real estate networks can be used as tools to foster real estate business model innovation, which in turn can lead to more competitive real estate companies and building users.

Real option valuation is capable of accounting for uncertainties in residential development projects but still lacks practical adoption due to limited evidence to support application of the theory in practice. The purpose of this paper is to use option valuation to value staging option embedded in residential projects and compare with results from DCF to determine which of the two methods delivers superior results.

The fuzzy payoff method (FPOM), a real options model that uses scenario planning approach to generate a range of figures, from which a single-numerical value is computed for decision-making.

The results showed that the use of a range of figures was able to represent uncertainties to a higher degree of accuracy than the static DCF. As a result, the FPOM was able to capture about 3 per cent of the value of the project that was missed by the DCF. The staging option offers an opportunity to abandon unprofitable phases of a project, thereby limiting downside losses. Thus, real option models are practically applicable to cases in property sector.

Residential property developers must consider flexibility in financial feasibility evaluation of development because of the embedded value in uncertain property projects. It is important to account for optionality in financial evaluation of property projects for value maximisation.

The FPOM has been used for the first time to evaluate a horizontal phasing of a residential development project.

The purpose of this study is to carry out a comparative analysis of four machine learning models such as linear regression, decision trees, k-nearest neighbors and support vector regression in predicting housing prices in Prishtina.

Using Python, the models were assessed on a data set of 1,512 property transactions with mean squared error, coefficient of determination, mean absolute error and root mean squared error as metrics. The study also conducts variable importance test.

Upon preprocessing and standardization of the data, the models were trained and tested, with the decision tree model producing the best performance. The variable importance test found the distance from central business district and distance to the road leading to central business district as the most relevant drivers of housing prices across all models, with the exception of support vector machine model, which showed minimal importance for all variables.

To the best of the author’s knowledge, the originality of this research rests in its methodological approach and emphasis on Prishtina's real estate market, which has never been studied in this context, and its findings may be generalizable to comparable transitional economies with booming real estate sector like Kosovo.

While several warehouses are now technologically equipped and smart, the implementation of real-time analytics in warehouse operations is scarcely reported in the literature. This study aims to develop a practical system for real-time analytics of process monitoring in an internet-of-things (IoT)-enabled smart warehouse environment.

A modified system development research process was used to carry out this research. A prototype system was developed that mimicked a case company’s actual warehouse operations in Indonesia’s manufacturing companies. The proposed system relied heavily on the utilization of IoT technologies, wireless internet connection and web services to keep track of the product movement to provide real-time access to critical warehousing activities, helping make better, faster and more informed decisions.

The proposed system in the presented case company increased real-time warehousing processes visibility for stakeholders at different management levels in their most convenient ways by developing visual representation to display crucial information. The numerical or textual data were converted into graphics for ease of understanding for stakeholders, including field operators. The key elements for the feasible implementation of the proposed model in an industrial area were discussed. They are strategic-level components, IoT-enabled warehouse environments, customized middleware settings, real-time processing software and visual dashboard configuration.

While this study shows a prototype-based implementation of actual warehouse operations in one of Indonesia’s manufacturing companies, the architectural requirements are applicable and extensible by other companies. In this sense, the research offers significant economic advantages by using customized middleware to avoid unnecessary waste brought by the off-the-shelves generic middleware, which is not entirely suitable for system development.

This research’s finding contributes to filling the gap in the limited body of knowledge of real-time analytics implementation in warehousing operations. This should encourage other researchers to enhance and develop the devised elements to enrich smart warehousing’s theoretical knowledge. Besides, the successful proof-of-concept implementation reported in this research would allow other companies to gain valuable insights and experiences.

The purpose of this paper is to provide two contrasting case studies of the integration and application of e‐learning in real estate education.

The two cases presented in this paper provide good practical illustrations of the integration of e‐learning practice into real estate education. The first examines integration at the programme level through the use of iLearn as a mechanism for personal development planning (PDP). The second examines the use of a technologically enhanced learning and teaching environment at the level of an individual module.

Both case studies report some degree of success in achieving specific learning objectives using e‐learning techniques. With respect to PDP, it is too early to fully evaluate the exact contribution of iLearn. The evidence from the second case study suggests that use of a technologically enhanced class room set‐up to solve simulated cases in the context of a real finance and investment module, facilitates creative learning, promotes team work and increases interaction within and across the participant group.

The paper provides insights into current best practice in the use of e‐learning techniques in real estate education as a mechanism for enhancing the teaching and learning experience.