The Future Of The Valuation Profession

The aim of this research was to explore the future of the property profession generally and the role of the Valuer in particular, and how the profession could maintain and increase relevance and currency, and set an agenda to support employers in attracting and retaining a more diverse talent pool to run the businesses of the future. This report presents the findings of the research project that investigates extant literature on the issues and challenges faced by the current valuation profession

Meeting Changing Industry Expectations From Australian Property Valuation Graduates

The valuation profession faces significant challenges as more valuation processes become automated, and the role of the valuer becomes more one of data handling than an economic analyst. To respond to industry needs, the role of the valuer must change. It follows that there is a need for universities to re-evaluate their existing property curricula, modifying content where necessary, to prepare their graduates better for a changing workforce. Employing a series of focus group discussions with valuation practitioners, this study examined specific industry expectations and provides recommendations to strategically align Australian property curricula with industry expectations in order to maintain the relevance of property education. The study identified personal, technical and business-related skills that are essential for graduates to possess. The roles of the professional bodies, industry/employers and educators to meet the changing demand on the profession are identified. Changes are required to degree programme content in respect of digital technologies and statistical skills. Whilst the universities offer a curriculum that adheres to the accreditation requirements of the professional bodies, there is also a need to incorporate specialised knowledge with set pathways. The need for students to have practical experience is apparent and undertaking placements with assessment that could be credited as part of the degree is recommended. The study highlights the need for a careful analysis of student learning experience to ensure that graduate skills meet the industry expectations, and that graduates themselves are able to adapt to future changes

The future of the Australian valuation profession: New knowledge, emerging trends and practices

© 2018, Emerald Publishing Limited. Purpose: Valuers face significant challenges as processes become automated and the role evolves to data handling and processing. To survive and thrive, valuers must respond to a changing market. The purpose of this paper is to examine the issues, threats and challenges facing the Australian profession, though the issues are global. Design/methodology/approach: This qualitative research sought a deeper understanding of the threats, challenges and new areas of practice that Australian valuers were experiencing. A focus group approach was designed to collect data from practitioners in Sydney and Melbourne. The research aimed to identify new knowledge and skills for the future and emerging trends and practices. Findings: The key issues, threats and challenges faced included increasing use of automated valuation models for low-risk residential valuations, valuers being unable to protect themselves against the banks, loss of control of the data and valuations. In total, 12 knowledge domains and skills required in the future were established and ten emerging trends and practices were identified. Research limitations/implications: The key limitations were that participants were from Melbourne and Sydney in Australia only and the focus is NSW and Victoria centric, although many participants have international work experience. There was an under representation of rural valuers, of small valuation firms, of young, recently joined or qualified valuers and females. Practical implications: The findings inform a manifesto for the future which sets out the practical implications for valuers and the professional body. This action plan sets the new knowledge domains, practices and trends that can be adopted by the profession and its members. Originality/value: This is the original research and highlights some real threats, issues and challenges facing the Australian valuers. It complements work undertaken by legal and accounting professional bodies, which sense change affecting their membership and services. A manifesto for action has been outlined to address the changes that are coming and those already here

Identifying adaptive strategies employed by office building investors

Purpose - With strategies including flexible work practices, tenants are increasingly seeking flexibility in their physical office space and layouts. The purpose of this paper is to examine to what extent investors address tenants' changing demand for office space with reference to layouts in new and existing office buildings. Design/methodology/approach - A qualitative study comprising in-depth individual interviews with senior portfolio managers of all listed property trusts investing in the office sector in New Zealand was undertaken. Findings - The findings confirmed property investors incorporate several adaptive and flexible space design and specifications in their modern office buildings to enhance space flexibility and functional efficiency. These include adaptive building structures, efficient floor plates, flexible building services, advanced IT networking, high-quality building amenities and modern building materials. Building structures and layouts are designed to be modified quickly and cost effectively to address tenants' changing needs. Implications affecting tenant demand for flexible spaces on their lease contracts were also identified. Research limitations/implications - The findings from this research have implications for management of office space. Although the data were sourced with reference to buildings located in New Zealand only, the findings are applicable to office buildings in other countries. Practical implications - The study provides an insight into design strategies adopted in modern office buildings to enhance space flexibility and functional efficiency. These findings are of practical application to professionals involved in the design, development, investment and valuation of modern office buildings. Originality/value - The paper provides in-depth insights into how investors meet tenants' changing demand for physical space which is linked to delivering improved and stable market-driven re

The Future Of The Valuation Profession: Shaping The Strategic Direction Of The Profession For 2030

Problem/purpose – The valuation profession faces significant challenges as more valuation processes become automated, and the role of the valuer becomes more one of data handling and information processing than a property analyst. With this, the role of the valuer must change in order to respond to the industry’s needs. Moreover with the ageing membership, it is vital to attract new talented individuals into the profession. The aim of this study is to explore the future of the property profession and the role of the valuer in particular, and how the profession could maintain and increase its relevance and currency. Design/methodology/approach – To outline the changing skills profile of valuation profession and business needs in the future, it required a thorough understanding of the issues and challenges currently faced by the valuation profession. The authors have analysed the published literature and identified key main issues and challenges namely changing role of the valuer, market competition, changing technology and technical knowledge and skills, changing membership demographics, and the fragmentation of the profession. Findings – The findings identify and map the changing skills profile of the valuation profession as well as the skills and qualities that will be needed, as well as emerging future and existing knowledge fields and specialisms. The research identifies practices in decline and those on the rise within property valuers and suggests the ways the profession can link with employers and educators to better understand variables affecting supply and demand for new entrants and the new skills firms are seeking. The research suggests future direction as to how to market the valuation profession to recruit and retain future generations of valuers and how to adapt to the evolving marketplace for valuation services globally. Originality/value – This study investigates and maps the changing roles, skills, knowledge fields, specialisms, challenges and capacity of Australian valuers in respect of future business needs. This paper presents the findings of the first step of the research which is the literature review. The research will provide a basis for developing a consistent strategic plan with regards to the future of the profession. It will also provide an understanding of how different regional policy regimes impacts on the role, knowledge fields, specialisms and skills needed of valuers in the future. The findings will help inform future professional competency requirements for professional bodies as well as the curriculum of degree programmes nationally. Research limitations/implications – The research will facilitate knowledge and understanding of the changing skills profile and knowledge fields of valuation professionals across main Australian regions. It will provide suggestions on the ways in which the profession can link with employers and educators to attract the best talent and future proof the profession. Ways of promoting careers within the sector are set out

Dominant and non-dominant lease structures and their effect on place-based valuation practices

Purpose: This paper aims to examine the experiences of valuers when valuing market dominant and non-dominant standard lease structures. The research compares the perceptions and approaches of New Zealand valuers when valuing gross and net leases, two standard lease types commonly utilised in the New Zealand commercial property market. Design/methodology/approach: The study employs a structured survey of 87 commercial valuers practising in Auckland (where net leases dominate) and Wellington (where gross leases dominate) complemented by in-depth interviews with senior commercial valuers employed by large national/international multidisciplinary real estate companies. Findings: The results suggest that valuers find the process of valuing standard non-dominant lease structures more demanding than valuing dominant leases and tend to be comparatively less confident about carrying out valuations of leases with which they are less familiar. This lack of confidence tends to result from the lack of comparable evidence and the added complexity of the valuation process requiring additional valuer expertise and judgement. In addition the study uncovers the adoption of place-based differential valuation practices that have built up over time between the two centres under study. Originality/value: The paper contributes to the literature relating to valuer behaviour by revealing that even within one country with the same rules and professional standards different valuation practices may evolve. This study specifically identifies different dominant lease structures as being one of the reasons for these differential valuation practices. The findings also highlight the difficulties perceived by valuers when valuing non-dominant leases and in turn this may have implications when comparing the valuation outcomes of similar buildings within different markets

Influence of dynamic changes of workplace on organisational culture

Challenged by the effects of organisational flexibility and high corporate real estate costs, organisations are increasingly seeking flexibility and operational efficiency in their office spaces. To date, the literature relating to flexible office spaces has focused mainly on their physical characteristics. The full effects of such spaces on human reactions and the corporate culture of organisations are less understood. The objective of this paper is to examine the influence of introducing activity-based working (ABW) on existing organisational culture. It was addressed from the perspective of the management of large corporate organisations. A mixed-method research that included a qualitative approach followed by a quantitative approach was adopted. The first stage included semistructured interviews with 19 large organisations who had introduced flexible layouts. The second stage involved a questionnaire survey of 32 organisations which had experienced office layout changes. Findings identify that the nature of workplace designs has a considerable impact on the corporate culture of an organisation and can be used to leverage and change its culture. Workplace designs directly influence culture by supporting the systems, symbols, engagement/motivation and behaviours of the organisation and employees. However, some differences between the perceptions of public and private organisations were identified. In conclusion, office layouts are artefacts that can either support, or change, the existing organisational culture. Therefore, the critical achievement of workspace design is to integrate the cultures, values and behaviours of organisations to meet their ultimate goals

Addressing changes in office tenant space requirements: A landlord perspective

Office tenants' requirements for corporate real estate have changed in the recent years in response to their changing work practices. Challenged by the effects of flexible workplace strategies, tenants are increasingly seeking flexibility and functional efficiency in their physical office space and its layouts. For landlords, having the right type of space which can accommodate changing tenant layout requirements is paramount to the success of their office portfolio. Little attention has been given to understanding how landlords address tenants' changing demand for office space and its layouts in their new and already established properties in New Zealand. Employing a series of interviews with all listed property trusts who have actively invested in office properties, this study examined how large scale landlords address and accommodate tenant demand for more flexible office spaces in their portfolios. The study identifies that landlords are clearly focused on providing flexible and efficient building space solutions in their current and proposed investments, with financial and non- financial benefits in mind. Their properties are built or refurbished to enhance operational functionality by incorporating flexible space design and specifications. These include large uninterrupted floor plates, adaptable building structures, flexible building services, well planned space grids and simplified building specifications. Building structures and layouts are designed to be able to flex quickly and cost effectively to address tenants' changing space requirements. Tailor-made campus style offices, serviced offices, and multi-functional office spaces are becoming more commonplace. The research highlights the importance of meeting tenants' changing demand for physical space, which in turn has the potential to deliver greater, stable market driven returns to the investors