The impact of Minimum Energy Efficiency Standards: some evidence from the London office market

This paper provides a preliminary evaluation of staged introduction of the Minimum Energy Efficiency Standards in England and Wales in the period after announcement but before policy implementation. A process evaluation of the specific policy design focussing on potential sources of policy failure is provided. Drawing upon a database of all EPCs registered for offices in London, preliminary empirical evidence is presented on policy outcomes post-announcement and pre-implementation period. The extent to which EPC G and F rated office buildings in London have improved their EPC rating in anticipation of the introduction of the policy between 2011 until 2017 is analysed. It is found that a maximum of 0.65% of the properties affected by the introduction of minimum standards had modifications that could have been triggered by the policy intervention in the period prior to policy implementation

The accuracy of consensus real estate forecasts revisited

This study updates and expands upon the existing work on the accuracy of the IPF’s Consensus Forecasts. The paper evaluates the extent to which the consensus forecasts were able to predict the relative performance. It also assesses the accuracy of implied yield forecasts and concludes that failure in yield forecasting is the main source of failure in forecasts of capital growth and total returns. A high level of agreement between the actual and forecasted sector rankings was found. Evidence of a pessimism bias was identified. Yield forecasts are consistently found to perform worst using a range of forecast performance metrics

Impact of quality-led design on real estate value: a spatiotemporal analysis of city centre apartments

This paper estimates the impact of quality design attributes on real estate value through empirical investigation of the owner-occupied multifamily residential sector. The methodological design is based on spatiotemporal modelling using a unique data-set of 424 Belfast City Centre apartments sold during the period 2000–2008. The key findings indicate that urban scale aspects of quality such as connectivity and vitality associated with building density add to real estate value. At the building level, quality features highly valued by home buyers are namely appropriateness of material quality, fenestration and massing to the surroundings. These key criteria are considered to have a significant visual perception compared to more complex concepts such as identity, material choice and overall condition. The contribution to knowledge involves extending the hedonic model to incorporate a wider selection of design quality variables; and improving estimation through the use of spatiotemporal modelling.</p

Real estate value and urban design quality : a cross-sectoral analysis of property peformance

The aim of this thesis is to evaluate the impact of urban design quality variables on real estate value through comparative performance analysis of the residential, office and retail sectors. Based on the highly intangible nature of design and the controversy surrounding the approach to measuring quality, real estate value is considered the best means to capture the implicit prices of different aspects of quality. In order to quantify these aspects the research uses both qualitative and quantitative methods to introduce a set of measurable elements of good urban design. The framework for this approach is based on the principles of utility theory and employs the hedonic pricing method to measure quality aspects. This constitutes a unique attempt to explicitly identify and model the aspects of quality design and measure their added value to real estate. The intra-sectoral focus informed a holistic approach to quality design which consisted of the formulation of three different hedonic models, one for each 'measurable' sector in core urban locations. Ordinary Least Squares Regression was used to estimate the equations for a unique dataset of property transactions in Belfast City Centre. The fmal database was characterised by a sectoral categorisation and comprised 424 apartments sold between 2000 and 2008, 279 commercial offices rented during the period 1995-2009 and 301 retail units rented between 1994 and 2009. The main fmdings suggest that aspects of quality design such as context/identity, connectivity/permeability of the urban fabric, vitality and liveability of the surroundings and appropriate quality of construction material add real estate value. Other outcomes of interest were attributed to the peculiarity of the study area, sectoral characteristics and property cycles. This implies that in addition to the widely accepted place-specificity, urban design is highly dependent on the factors that drive the real estate markets.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Minimum energy efficiency standards in the commercial real estate sector: a critical review of policy regimes

This paper provides an international comparative analysis of pioneering minimum energy efficiency standards (MEES) policies in the Scottish, English/Welsh, Dutch and French commercial real estate sectors. These are the four national policy regimes to employ MEES to date in the commercial real estate sector with varied timelines spanning from 2009 to 2050. Drawing upon a document review of policy texts produced by policy makers and other stakeholders, the four policy regimes are evaluated in terms of their policy design focussing on minimum performance standards, forward guidance, scope and exemptions. The analysis indicates that, given the range of intervening factors, side-effects and uncertainties, there are difficult choices in finding a balance between phasing implementation, providing forward guidance and adjusting policy in response to evaluation. Whilst it was initially expected that most EU jurisdictions would default to an Energy Performance Certificate (EPC) related standard, evidence from the four policy regimes shows that there has been a shift towards MEES that are linked to actual rather than modelled energy consumption. However, for leased stock where the owner may have limited operational control, the separation of owners’ responsibility for compliance and the users’ responsibility for operations makes designing consumption-based instruments more challenging. A central issue in policy design has been the trade-off between minimising the financial costs to property owners and occupiers of complying with performance thresholds and maximising reductions in energy consumption. There is growing recognition that regulatory economies of scale may be achieved by targeting large properties which allows for a large proportion of the total area of the stock to be covered whilst exempting a large proportion of transactions or properties

Urban pattern dichotomy in tirana:Socio-spatial impact of liberalism

Transition from a centralized to a market economy yielded different responses from the former Eastern Bloc countries with economic performance directly affecting spatial composition of the cities. Post-socialist urban transformations across Central and Eastern Europe exhibit main, common features but always preserve singularities, characteristic of individual states. This paper, by using comparative methods and urban planning analyses, emphasizes differences in the degree of change for inner city areas under same transition conditions. Drawing on empirical evidence from Tirana, the paper stresses the fact that besides the obvious general change in the communism-inherited urban fabric, the degree of this change is predicated on the area's centrality and its pretransitional urban pattern. It is pointed out that this spatial change follows a mutually interactive, parallel path with the socio-economic composition of the city. The peculiarity of Tirana stands in the fact that post-socialist socio-spatial transformations are better defined by Balkanization (implying individuality and hostility) rather than segregation (which implies clustering).</p

Disposal strategies in corporate real estate portfolios:Evidence from the Dutch banking sector

Purpose: The purpose of this paper is to develop an operational framework with guidelines and lessons to improve the current real estate portfolio disposal procedures of freeholds, based on empirical evidence from the banking sector. Design/methodology/approach: The empirical research is based on a comparative analysis of four case studies, representing approximately 80 per cent of the Dutch banking sector. The case studies comprise a systematic document review of corporate business and real estate strategies and semi-structured interviews with decision makers who steer the organisation’s corporate real estate (CRE) portfolio composition. Findings: This research shows a strong relationship between organisation characteristics, legacy and strategy, disposal drivers and CRE disposal strategies. The weighing of drivers and order of steps in strategy execution strategies largely depend on organisational objectives. Research limitations/implications: This paper reports empirical findings from Dutch case studies. To generalise, further research is needed in different legal, financial and economic contexts and in other sectors. This paper suggests a more thorough study of the relationship between space-use efficiency and technological innovation implementation. Practical implications: The framework proposes strategy improvements and a proactive approach to corporate real estate management (CREM) to create value through real estate portfolios. Originality/value: This paper provides a thorough analysis of the CREM of the Dutch banking sector and is applicable to CREM in this and other sectors.</p

Real estate value and quality design in commercial office properties

Purpose: The purpose of this paper is to assess the impact of urban design quality on the real estate value of commercial office property. Empirical evidence based on quantitative research into the added value of quality design on real estate performance has seen little advancement during the past two decades. Office sector hedonic analysis has been predominantly characterised by a piecemeal approach focusing on specific attributes and lacking a holistic approach to the effects of design quality on real estate value. This paper brings forward new empirical evidence to assess the added value of quality design based on quantitative analysis of office sector performance in the historic urban core of a UK city. Design/methodology/approach: Using a unique dataset of 279 Belfast City Centre office properties rented during the period 1995-2009, this study employs regression analysis to estimate a hedonic pricing model based on a composite range of variables. The contribution of this study is the complementary utilisation of quantitative and qualitative methods to generate variables incorporating a holistic approach to design quality at three different levels of investigation: interior; exterior/architectural; and urban scale. Findings: The key findings show that higher design quality specifications in the three levels (interior, exterior and urban scale) can generate rent premiums. Aspects of quality design that include connectivity and building facade distinctiveness enhance corporate image; and material quality appropriateness adds to real estate value whereas the lack of preference for tall buildings and high-end interior quality specifications in historic cores reflect market reactions to economic trends. Practical implications: This paper provides investors and developers with insights about those aspects of quality design that are highly valued by office tenants in historic urban cores. This is especially significant in the downturn of the property cycle with investment priorities playing a crucial role in a project's economic viability. Originality/value: This study bridges a significant gap in the literature concerning hedonic investigation of the added value of quality design on real estate performance. This holistic approach using quantitative and qualitative methods and incorporating urban design variables constitutes a unique approach to quantifying quality impacts on real estate value.</p

Urban design quality and real estate value:in search of a methodological framework

This paper presents a critical interdisciplinary examination of the interface between the urban design and real estate disciplines and provides a modus operandi for estimating different aspects of quality design. The purpose of this paper is to provide a framework for further developing hedonic modelling of real estate markets to value urban design quality. It achieves this by investigating in detail the concepts of urban design quality and real estate value, and by advocating the need for an overarching conceptual approach through the application of utility theory that provides the theoretical underpinnings of the framework.</p

Hedonic modelling of high street retail properties:A quality design perspective

Purpose: The purpose of this paper is to investigate the relationship between urban design quality and the real estate value of high street retail properties. Quantitative research on the added value of quality design has seen little advancement during the past two decades and hedonic analysis of the high street retail sector remains embryonic. This paper bridges this gap by providing empirical evidence on the added value of quality design.Design/methodology/approach: The study uses a unique dataset of 301 Belfast City Centre retail transactions during the period 1994-2009. Ordinary least squares (OLS) regression analysis is used to estimate a hedonic pricing model that utilises a composite range of variables. These variables were designed employing quantitative and qualitative approaches complementarily to strengthen the value of the empirical research. Findings: The findings suggest that aspects of quality design such as connectivity, frontage continuity and variety, material quality and massing appropriateness add to real estate value. These findings supplement those on sector-specific value determinants that emphasise the high impact of location, tenant characteristic and Zone-A price calculations. Practical implications: In analysing high street retail rent determinants this paper focuses on the impact of various aspects of quality design to inform investors and developers about those aspects that are highly valued by city centre retail tenants. Policy makers benefit from the findings through empirically justified built environment benchmarks for improving the quality of life in our cities. Originality/value: This study provides a quantitative model for measuring urban design quality which uses data from a UK city but has a wider application range. It bridges a significant gap in the literature related to hedonic investigation of the added value of quality design by providing a holistic approach to quality.</p