Factors that Influence the Performance of Office Properties

Kurzrock, Björn-Martin; Rottke, Nico B.; Schiereck, Dirk

doi:10.1080/10835547.2009.12089836

Cited by 11 publications

(6 citation statements)

References 25 publications

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“…According to their analysis, building size and height also increased transaction prices. Kurzrock et al (2009) repeated their analysis for German properties. Furthermore, the value contribution of prestige factors like architecture awards and shiny facades was pointed out by Fuerst et al (2009) and Dermisi and McDonald (2010).…”

Section: Determining a “Super Trophy” Property – Analytical Fundamentalsmentioning

confidence: 99%

Green pay off in commercial real estate in Germany: assessing the role of Super Trophy status

Ott

Hahn²

2018

JPIF

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Purpose Based on a hedonic regression approach, the purpose of this paper is to relativize existing green pay off evidence by incorporating Super Trophy as a so far underrepresented determinant. The authors analyze a private panel database of 160 European office properties and confirm a significant green pay off; the positive impact of excellent environmental certification results on market values and net rents is significantly reduced when considering Super Trophy characteristics. Design/methodology/approach Based on a panel database of 160 European office properties, the survey applies a hedonic regression approach including an extensive set of control factors as, for example, location criteria, general property characteristics, climate adjustments, consumption data, refurbishment activities, green leases, sustainable certification and energy performance certificate figures. Findings Even though our database still confirms a significant green pay off, the positive impact of excellent environmental certification results on market values and net rents is significantly reduced when controlling for Super Trophy characteristics. Practical implications Especially, the question how sustainability can be integrated into real estate appraisal is of major interest. The paper at hand may help in two aspects: on the one hand, it provides further insight with regard to the quantitative impact of Super Trophy Buildings on rents and market values. On the other hand, a higher transparency in appraisals may result in structural specifications that help to consolidate appraisals and empirical evidence on a “green pay off.” Originality/value The study investigates a niche segment – landmark properties. The empirical analysis explicitly controls for potential Super Trophy status. It draws attention to the importance of a reasonable and complete set of control variables to increase statistical validity of future studies in that field.

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Section: Determining a “Super Trophy” Property – Analytical Fundamentalsmentioning

confidence: 99%

Green pay off in commercial real estate in Germany: assessing the role of Super Trophy status

Ott

Hahn²

2018

JPIF

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“…gend auf exogene Faktoren wie Zinsen, Inflation und Einkommen (siehe z. B. Lieser und Groh 2014 und Kurzrock et al 2009). Auch Steueranreize haben über ihren Einfluss auf Bautätigkeit und Mietentwicklung (Smith et al 2000;Gallagher und Wood 1999) einen permanenten Bezug zu Immobilienrenditen.…”

Section: Einführung In Die Immobilienrisikoforschung Und Vorstellung unclassified

Insights into the reasons for non-normal real estate returns: An explorative study of German housing portfolios

Krieger

Lausberg

Wellner

2018

Z Immobilienökonomie

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Zusammenfassung Dass die Renditen von direkten Immobilieninvestments nicht normalverteilt sind, gilt als erwiesen. Aber warum Immobilienrenditen nicht normalverteilt sind, wurde bisher kaum erforscht. Das ist erstaunlich, denn die Normalverteilung wird in Wissenschaft und Praxis immer noch häufig unterstellt, d. h. man verwendet ein systematisch fehlerhaftes Modell ohne Erkenntnisse über Ursachen und Wirkungen des Fehlers zu haben, um dem Fehler so Rechnung tragen zu können. Im Risikomanagement, wo viele Risikomaße auf Verteilungen basieren, muss das zu Fehlentscheidungen führen. Wir gehen davon aus, dass die Erforschung der Gründe für nicht-normalverteilte Immobilienrenditen zur Verfeinerung von Risikomodellen und zur Verbesserung des Immobilienrisikomanagements beitragen kann. Daher ist unser Ziel, ausgewählte Gründe in einem explorativen Verfahren zu untersuchen. Durch unsere Stichprobe sind die Ergebnisse zwar auf Direktinvestitionen in deutsche Wohnraumportfolios beschränkt, aber gewisse Aspekte sind vermutlich auf gewerbliche und ausländische Immobilien sowie indirekte Investitionen übertragbar. Insgesamt legen die Ergebnisse nahe, dass (a) die Theorie deterministisch-chaotischer Prozesse ungeeignet für Direktinvestments ist, (b) Immobilienzeitreihen durch deterministische Ereignisse geprägt sind, die eine Messung verzerren und (c) sich das Risiko mehrdimensional durch die Variablen Homogenität, Granularität und Frequenz ergibt. Auch wenn

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“…Only few studies (Golob et al, 2012;Manni and Chane-Teng, 2008;Fleming, 2010;Muli, 2013;Kursock et al, 2009;Thontteh and Omirin, 2014) were found to have been conducted in this area. Golob et al (2012) analyzed the impact of factors on the real estate market, using Slovenia as their case study.…”

Section: Review Of Factors Influencing Real Estate Investment Performancementioning

confidence: 99%

“…Population growth contributed the least with a value of 29 percent. Kursock et al (2009), investigated the factors that influence the performance of office property in Germany based on single-property data. They aimed at identifying relevant market-and property-related performance factors.…”

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confidence: 99%

Investment performance indicators of selected Lagos commercial properties

Anule

Umeh

2016

Journal of Property Investment &Amp; Finance

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Purpose – The purpose of this paper is to identify drivers of investment performance of commercial property in Lagos with a view to preventing a rule of thumb approach to investments’ decisions. Design/methodology/approach – Questions theoretically underpinned on factors influencing commercial property investment performance were designed and administered to 125 real estate practitioners in Lagos in order to weigh the factors influencing commercial property investment performance in five selected locations in Lagos. The responses were analyzed using the mean item score and the principal component analysis, and the most critical factors extracted. Findings – Individual sub-markets reveal top factors common to each location as cost of building materials, location, quality of road infrastructure, rental growth and security. Findings across sub-markets reveal three critical set of factors. Condition of the premises; the second theme is a mixture of socio-cultural and legal framework; the third is also a mixture of socio-cultural, political and economic factors. Their factor loading’s are: 0.851, 0.828 and 0.805, respectively. Practical implications – Investors, appraisers and property managers may benefit from the findings as they make better investment and management decisions. Also adopting modern construction methods will cut unnecessary cost incurred from wastage of building materials and open the door to private investors with limited capital. Originality/value – This paper is the first to capture five different locations in Lagos. It goes beyond the study of Thontteh and Omirin (2014) which covered only one location. Thus, this study tends to present more reliable findings.

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Factors that Influence the Performance of Office Properties

Cited by 11 publications

References 25 publications

Green pay off in commercial real estate in Germany: assessing the role of Super Trophy status

Green pay off in commercial real estate in Germany: assessing the role of Super Trophy status

Insights into the reasons for non-normal real estate returns: An explorative study of German housing portfolios

Investment performance indicators of selected Lagos commercial properties

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