Commercial Property Development Research Articles

Analysing Path Dependence to Understand Divergence: Investigating Hybrid Neo-liberal Urban Transformation Processes in Turkey

This paper explores some deeply embedded differences between urban development processes. These are revealed in a Turkish case study by systematically analysing exogenous contingent events and trajectories. The study tests the concept of path dependence as a framework for analysing urban transformation. It examines the hybrid neo-liberal urban transformation along the Levent–Maslak axis, the extension of Istanbul's CBD (central business district). Commercial property development along the Levent–Maslak axis started in the late 1960s and, since the 1990s, the axis has become the financial heart of the city (even of the country).

Green commercial property development in urban South Africa: emerging trends, emerging geographies

Abstract Within sub-Saharan Africa South Africa is one of the leaders in greening and initiatives for sustainable urban development. Notwithstanding the central role of climate change impacts and of the green challenge for the future, the greening of urban development has not been a major focus in local geographical research. The task in this paper is to investigate one aspect of reorienting the economy towards a pathway of low carbon growth and of addressing the green urban challenge. Specifically, issues around the greening of commercial property developments in South Africa are explored. Under the ratings of the Green Building Council of South Africa 50 green buildings existed by early 2014. Geographically these properties cluster in South Africa’s major cities, in particular Johannesburg, the country’s economic powerhouse and centre for corporate headquarters, and Pretoria, the administrative capital. New proposals for building retrofitting may result in a greater spatial spread of green buildings in the near future.

Commercial real estate investment in Ho Chi Minh City – A level playing field for foreign and domestic investors?

In Vietnam, similarly to other countries with the same system, transformation of the economy from one based on central planning into one founded on market principles, provides incomplete property rights in land and property markets. Nonetheless, cities like Ho Chi Minh City (HCMC) are experiencing strong growth in commercial property markets. Although the real estate market is still suffering from the recession in many parts of the world, commercial property development in HCMC is booming. This paper explores the present privatization process and the changing property rights regime related to the real estate market in Vietnam. Employing logistic regression analysis, this study also examines opportunities of foreign and domestic investors in the commercial real estate market in HCM city centre. The findings of this study show that there is not yet a level playing field for foreign and domestic investors, mainly caused by a different property rights regime for both groups of investors, especially related to land lease conditions. We also find that both groups invest in different categories of commercial real estate. However, this does not necessarily lead to reduced foreign investment in Vietnam's real estate market, which means that the transition and privatization process in Vietnam is still moving in the right direction.

PENGARUH PENINGKATAN HARGA LAHAN TERHADAP PERKEMBANGAN PROPERTI KOMERSIAL DI SEGITIGA PERUMDA TEMBALANG SEMARANG

<p>Tembalang is a growing area with a central activity of education. The existence of educational functions have an impact to presence various activities in the surrounding, particularly for support the main functions of the education. The emergence of a variety of activities such as trade and services, housing, and higher education highly influential on increasing demand for land in this region. Land is limited goods will increase the price comparable with the increasing demand. The higher land demand occurs during the relocation of the first Undip Campus (located in Pleburan) to a new campus in Undip Tembalang which resulted in an increase land prices more than 1.000%. The price of land which originally ranged from Rp 200,000, - until Rp300.000, -/ m2 jumped to Rp.3.500.000,- until Rp4.000.000,-/ m2 (http:/www.antarajateng.com, accessed 2 November 2010). Segitiga Perumda is a very strategic location, is also supported by the completeness of facilities and infrastructure, as well as adequate accessibility. This condition is very support of investment in this region thus causing an increase in land prices significantly from year to year. Under these conditions, Semarang City establish the presence of the UN revised each year in which are also NJOP Earth. The rise of the United Nations addressed to over the function property into commercial property to increase value added as well asm the ability to pay. To achieve the objectives of the study, carried out a visit at an early stage to obtain data instansional Earth NJOP in the Segitiga Perumda for seven year (2005-2011) is the reference for analyzing land prices. Earth NJOP become as a reference because of the difficulty to getting the real land price data in time series (2005-2011).The data used to map the Earth NJOP region based on land prices. Furthermore, field observations and interviews conducted to determine the function of existing properties in the Segitiga Perumda by type of commercial property. From both, carried out in order to obtain super-impose an overlay map associated cost of land and commercial property development in 2005-2011. To determine the significance of the influence of increasing land prices to the development of commercial properties, the calculations performed by linear regression analysis using SPSS software version 17.0. Based on these statistics, it is known that the effect of land prices to the development of commercial properties for 89.05%, or have been in accordance with the initial hypothesis of the study. Based on the analysis, it can be concluded that an effect between the increase in land prices to the development of commercial properties in the Segitiga Perumda Tembalang. Land prices also determine the type of commercial property developments. On high land prices, growing commercial property is a business with high accessibility requirements, such as photocopy, supermarket, and retail outlets. Boarding commercial property and lodging accessibility needs are not so high that tends to develop in the zone of the cheaper land prices. Recommendations in this study aimed to Semarang City Government relating to policy formulation RDTRK and zoning district and the control of a business license.Recommendations for the Segitiga Perumda Tembalang is by controlling and pegawasan commercial property.</p>

A framework for successful hotel developments

Although there are similarities between hotel and other commercial property developments, hotel development has unique characteristics and requires specific management expertise. Hotels are usually ’single-use’ properties, whose primary revenue is generated from a service-based industry. They have a market value directly related to their ability to generate future net income by means of their operations. The essence of successful hotel property development lies in understanding these unique characteristics.Various critical success factors for hotel development are identified in this article, and incorporated into a hotel property development framework, establishing a practical ‘road map’ for successful hotel developments. The validity of the proposed hotel property development framework has been assessed by intensive direct interviews with hotel development professionals.

The Effects of Airports on Industrial and Commercial Property Development: The Case of Brisbane Airport

The Effects of Airports on Industrial and Commercial Property Development: The Case of Brisbane Airport

Developing an Indicator of Property Market Resilience—Investigating the Potential of GIS to Analyse Business Occupier Displacement and Property Market Filtering: A Case Study of Tyne and Wear

The research investigates the potential of a geographical information system to analyse the recorded displacement of office and industrial occupiers in Tyne and Wear, England. The paper demonstrates that a GIS provides an effective tool with which to illustrate, analyse and model occupier displacement and market filtering. The research goes on to develop and test an indicator with which to identify urban areas that may be most vulnerable to property occupier displacement. The correlation of rateable value and VAT registration datasets, with the origin of occupiers of new office and industrial developments and the location of vacant chain-end property, was tested. The strongest correlation is with new VAT registrations within a three-year period. A property market resilience indicator is developed, with which to classify urban areas in terms of their resilience or vulnerability to business occupier displacement generated by commercial property development.

Managing Neoliberal Urban Spaces: Commercial Property Development at Australian Airports

Airports are remaking Australian cities as they remake themselves as privatised enclaves of commercial entrepreneurialism. In line with overseas trends towards airport cities, all major federally leased Australian airports now derive a significant proportion of their revenue from non-aeronautical property development. New land uses such as direct factory outlets, big-box retailing, and even brickworks have proven most controversial. State governments, local councils, community groups, industry, and professional associations have expressed concerns about these commercial developments with statutory responsibility for development approvals vested solely in the federal government. The paper draws on the concept of ‘actually existing neoliberalism’ to interpret the making of the new market-driven airport spaces, the controversies which have ensued, and the re-regulatory interventions of the Commonwealth required to address community tensions. The debate about development of non-aeronautical activities on federally leased airport land is explored through the lens of the National Aviation Policy Review. The recommendations of this Review aim to incrementally reconfigure the policy commitment to ‘light handed’ regulation but future planning conflicts seem inevitable.

Sequential American Exchange Property Options

Property development activities often occur in stages, which are appropriately modeled as sequential American exchange property options, where there are interim expenditures required in order to keep the property development options “alive”. Normally American exchange options require a numerical solution, but herein there is a new closed-form approximate solution, which is computationally efficient and accurate. This method combines repeats of Margrabe European exchange and Geske compound option solutions with tight upper boundaries of either American perpetuities or European exchange options with a high volatility. Illustrations are provided of the sensitivity of the real sequential options and optimal timing to changes in several parameters, which provide a framework for property policy (tax, subsidy and regulatory) guidelines and for property development strategy evaluation. There are several plausible applications of these real option models in commercial and residential property development, within commercial property leases, with regard to switching tenants, and agricultural alternatives.

Hotels in Australia 1988–2003: A Tale of Booms and Busts

This paper reviews the development of Australia's hotel sector over a 15-year period and uses that analysis as the basis for suggesting the likely shape of future developments. The underlying dynamics of hotel development and subsequent performance are shown to reflect a continuing pattern of boom and bust. The late 1980s were characterized by a building boom in the lead-up to the Bicentennial and World Expo celebrations. This was soon followed by a bust during the recession of the early 1990s. In the lead-up to the 2000 Olympics, another building boom occurred, particularly in Sydney, leading to a predictable oversupply of rooms and subsequent stalling of construction during 2003. A change has been evident among developers, who are moving away from their view of hotels as a component of commercial property development towards a stronger connection between inner-city residential apartment developments and hotels.

Economic Impacts of the Turfgrass and Lawncare Industry in the United States

The turfgrass and lawncare industry in the United States continues to grow rapidly due to strong demand for residential and commercial property development, rising affluence, and the environmental and aesthetic benefits of turfgrass in the urban landscape. Economic sectors of the industry include sod farms, lawncare services, lawn and garden retail stores, and lawn equipment manufacturing. Golf courses were also included in this study as a major industry that depends upon highly managed turfgrass for golf play. Numerous studies have been conducted on the economic impacts of the turfgrass and lawncare industry for individual states or regions; however, this research is the first to report results for the entire United States. This is EDIS document FE632, a publication of the Food and Resource Economics Department, UF/IFAS Extension. Published April 2006. FE632/FE632: Economic Impacts of the Turfgrass and Lawncare Industry in the United States (ufl.edu)

The Scalar Transformation of the U.S. Commercial Property-Development Industry: A Cautionary Note on the Limits of Globalization

Economic geographers have commonly interpreted globalization in terms of a scalar transformation of economic activities in which the dominant form of economic organization progressively shifts from local to more global scales. This article critically examines this thesis in the context of a study of the U.S. commercial property-development industry. The first section argues that the literature on commercial property development tends to highlight globalizing sectors and activities. This focus generates a partial understanding of the industry that has important ramifications, not the least for examining the relationship between local economic and political elites in U.S. cities. A more cultural reading of economic actors and practices allows for an alternative approach that emphasizes the cultural embeddedness of economic and political practices and the local networks through which knowledge and influence are mobilized. The second section introduces the study area—Columbus, Ohio—and the research methods, and the third section presents the empirical results. These results fail to demonstrate any simple and linear process of scalar transformation. Indeed, a brief comparison with other cities points to the continuing dominance of a localized and fragmented organizational form. The fourth section draws on interviews with property developers to interpret this local structure of social relations. Three conclusions are drawn regarding the extent and nature of scalar transformation in the property-development industry. The most significant is the need for a more circumspect account of globalization and scalar transformation.

The commercial property development process

This paper is concerned with the development of commercial real estate in broadly capitalist economies. Rational project planning for such development is not well advanced. Property advisers agree that the development process is infinitely flexible; circumstances alter cases. There is much objective knowledge about aspects of development, although decisions are often based on subjective personal experience. Academic research from various disciplines has concentrated on the process, providing a framework of ideas but little empirical support. How development projects evolve depends upon structural forces that are not only economic, and the actors who become involved. This paper argues that the nature of the site is also important. Analysis of literature suggests a model based on four “dimensions”, structure, actors, site and events. Two case studies from Newcastle upon Tyne and Cape Town are used to test this theory; these were researched largely by interviewing the actors. Software for development is underdeveloped. Financial appraisal packages merely crunch the numbers provided. Existing software does little to alert actors to opportunities, constraints and pitfalls or assist them with decisions. Research should aim to develop decision‐support software of real practical use to actors in the management of projects.

Office Property Returns in Shanghai, Guangzhou, and Shenzhen

Commercial property development in China has been a growth industry in recent years. This article examines the returns on office property in the three major cities of Shanghai, Guangzhou, and Shenzhen in the period 1991 to 1997. Analyses based on the Security Market Line (SML) show that property investments in the office sector in Shanghai and Guangzhou have excess returns and that Shanghai office property tends to dominate the optimal portfolios due to its superior risk-adjusted returns. While equal returns in Shanghai, Guangzhou, and Shenzhen cannot be rejected, the Shanghai office property is subject to the least systematic risk, compared with all other cities. Hong Kong office property is included only in the less risky optimal portfolios. In addition, our results indicate that there is little correlation between the office property returns in Hong Kong and the office property in Guangzhou and Shenzhen. Guangzhou and Shenzhen office markets, which are geographically relatively close to Hong Kong, tend to be more volatile than the Shanghai office market. However, owing to Shenzhen’s proximity to Hong Kong, there is significant correlation between the returns of the office property in Shenzhen and the office property in Hong Kong.

Office Property Returns in Shanghai, Guangzhou, and Shenzhen

Commercial property development in China has been a growth industry in recent years. This article examines the returns on office property in the three major cities of Shanghai, Guangzhou, and Shenzhen in the period 1991 to 1997. Analyses based on the Security Market Line (SML) show that property investments in the office sector in Shanghai and Guangzhou have excess returns and that Shanghai office property tends to dominate the optimal portfolios due to its superior risk-adjusted returns. While equal returns in Shanghai, Guangzhou, and Shenzhen cannot be rejected, the Shanghai office property is subject to the least systematic risk, compared with all other cities. Hong Kong office property is included only in the less risky optimal portfolios. In addition, our results indicate that there is little correlation between the office property returns in Hong Kong and the office property in Guangzhou and Shenzhen. Guangzhou and Shenzhen office markets, which are geographically relatively close to Hong Kong, tend to be more volatile than the Shanghai office market. However, owing to Shenzhen's proximity to Hong Kong, there is significant correlation between the returns of the office property in Shenzhen and the office property in Hong Kong.

UK commercial property investment: time-series characteristics and modelling strategies

Modelling of UK commercial property development has been a growth industry in recent years. This paper examines the time series characteristics of the data on commercial output and considers the fruitfulness of modelling strategies with respect to it. The models estimated here make sense, and highlight the importance changes in national income, property values and construction costs in determining changes in commercial output. However, several technical and theoretical reasons suggest that they are likely to have poor forecasting ability. One reason is the data on commercial output have a low volatility, while the orders data are of poor accuracy and so are a bad substitute. Doubt is expressed over whether future econometric models can improve on this situation.

Euralille

This article is concerned with how far largely US- based literature about pro-growth politics can be applied in European circumstances. It does this by examining the political context for the development of the Euralille project. Changing transport networks have given Lille a new centrality in Europe. Local elites have sought to capitalize on new transport investment by promoting a large commercial property development around the new TGV inter change at the heart of the conurbation. The project has sought and gained an international reputation. A range of US literature attempts to explain 'civic boosterism' and property development-led urban policy. Recently some attempts have been made to translate the experience of US cities to the different circumstances of Europe. The article builds on this literature and explores issues in the Europeanization of the theory of urban regimes. The Euralille case does not reveal a 'growth coalition' according to the US model but a public sector-organized project, managed by a semi-autonomous public-private devel opment agency. Integrated political leadership and the powerful role of technical elites in the project con firm a common interpretation of French local politics. However, the project has also to be understood as a product of specific local political circumstances. The strong political and technical leadership of the project and its institutional form contribute to its success in attracting development resources and international prestige. Political change and the property recession, however, raise some doubts about the future of this model of urban governance.

VALUE ADDED TAX: IMPLICATIONS OF THE EUROPEAN COURT JUDGMENT FOR SURVEYORS AND PROPERTY MANAGERS

A new property VAT regime coming into force on 1st April, 1989, is expected to have a major impact on commercial property development and management. The Government proposes to change the VAT rules relating to commercial property in the 1989 Finance Bill following a judgment in the European Court of Justice (on 21st June) that certain UK VAT rules were inconsistent with European Law. Although the broad outlines of the new rules are fairly clear much detail remains to be defined. A consultation process will be followed (in December) by draft legislation. Until then the final details of the new rules remain a matter for speculation. The VAT rules relating to residential property will remain largely unchanged. The main changes for commercial property can be summarised as follows:

Major Projects in Central Sydney

Major urban development projects are capturing the imagination–and provoking the ire–of different sections of the public, including urban planners and researchers. Cranes on the skyline, a strong construction industry and the visible evidence of a future city coming into being all attract some people. Others criticize the nature of commercial property development; its location and scale, its impact on urban design, its lack of relation to strategic planning and the apparent tendency of governments to be lenient will approvals or creative with legislative bypasses.