A Framework Development to Facilitate the Effective Management of a Sustainable Commercial Property Market

Abstract

This study addresses issues around the dynamics of the commercial property market which are closely tied to the economic fluctuations that determine economic busts and booms. The main goal of this work was to build a framework for the sustainable management of the commercial property market. The research question was how the best practice in other countries, defined by analysing a broad spectrum of criteria that influence the dynamics of commercial property markets, can be applied in a comprehensive way, to resolve issues related to the sustainable management of the UK`s commercial property market. The selection, grouping and determination of the significance of criteria, established using a survey presented to experts from different countries, are among the key objectives of this work, helping to establish a system of ranked criteria. Further analysis was carried out using multi-criteria decision-making (MCDM) methods. MCDM methods allow the analyses of both quantitative and qualitative criteria affecting the dynamics of commercial property and to compare selected countries. The thesis contains the outcomes of a comparative analysis of criteria that affect the commercial property dynamics in the UK, France, Germany and Sweden. According to the literature, the global crisis did not see any decline in commercial property prices in Germany, Norway, Sweden, France, Austria or Switzerland (Section 2.4.1.). Germany, Sweden and France were selected for this study because the commercial property markets aligned to these countries are among the largest and, as such, can be used for comparison with the UK. The study explores commercial property transactions and rentals market fluctuations via the criteria affecting such dynamics. Using MCDM methods, a framework was developed to potentially help the national governments, lenders, borrowers and investors make various decisions with respect to the dynamics of the commercial property market, both on a national and international level. This thesis is expected to be instrumental for future research, to facilitate a broader examination of market dynamics, to help evaluate economic and social, environmental, emotional, and legal and regulatory criteria, as well as the impact thereof, in an integrated manner for the purposes of making decisions in the dynamic environment of the commercial property market.