Industrial Real Estate Research Articles

FORMATION OF INVESTMENT IDEAS IN THE CONDITIONS OF CHANGE IN TECHNOLOGICAL STRUCTURES OF THE ECONOMY

In the interests of developing theoretical and methodological foundations for the reproduction of fixed capital in industrial economic systems, the methodology for forming an investment idea as the first and most important stage of the investment and construction and life cycle of industrial real estate objects is studied. The existing methodological approach is based on marketing research of the goods and services market, the search for unsatisfied demand, excess material, labor and financial resources and does not take into account the patterns of development and change in technological structures in the world economy, which determine the terms of effective use of fixed capital in industry. Reproduction of fixed capital in industry, as is known, is carried out in the form of capital investments - investments in fixed capital. These are the costs of expanded reproduction of fixed capital in the form of construction of new industrial facilities, their expansion, reconstruction and technical re-equipment and the costs of simple reproduction of fixed capital in the form of major and current repairs of industrial facilities, including the costs of design and survey work, production of construction and installation works, acquisition of machines, equipment and other costs. Considering that fixed capital in the economic systems of industry dominates over circulating capital in terms of investment volume, and the terms of its effective use determine the return and profitability of costs for expanded and simple reproduction of fixed capital in industry, this study proposes to base the methodological approach to the formation of an investment plan on the patterns of evolution and change of technological structures of the economy that determine the development of industry.

DEFINING COMPONENTS OF THE METHODOLOGICAL PLATFORM FOR FORMING A BUSINESS PORTFOLIO OF A COMPANY IN THE UPDATED FORMAT OF MODERN DEVELOPMENT

The article is devoted to the analysis of the economic and operational imperatives of forming a business portfolio for a development company in the construction sector. A successful business portfolio management strategy requires the integration of financial, organizational, and technological aspects to ensure the sustainability and competitiveness of the business. In modern conditions, real estate development is one of the key factors that determines the dynamics of enterprise development, as it includes a comprehensive approach to asset management, from planning and financing to the construction and operation of objects. The theoretical and methodological foundations of the genesis of development at the current stage of the construction market's evolution have been analyzed.The methodological platform for forming a business portfolio should be based on the principles of rational resource management, risk analysis, and technological optimization. Changes in development activities require the active use of digital tools and a comprehensive approach to managing residential, commercial, and industrial properties, which allows for the maximization of profitability and minimization of risks.The article discusses the main stages of portfolio formation, such as strategic planning, selection of investment objects, and their integration into the overall structure of the enterprise. An economic and mathematical formalization of the process is also provided. For the successful operation of a development company, it is crucial to ensure coordinated work at all stages of the project — from planning and financing to construction and commissioning of the facilities.Particular attention is paid to the methods of economic and mathematical modelling (EMM) and quantitative risk analysis, which have become the basis for the development of the latest asset management strategies. The study analyses 35 different techniques. Each methodology offers unique tools for the effective management of development projects that allow forecasting financial flows, determining optimal investment strategies, and building the best plans for the development of a real estate portfolio. The specific methods used to value residential, commercial and industrial real estate are also discussed, taking into account their different levels of risk and return.It is important to note that the updated methodological platform is suitable for adaptation to the latest technologies and digital tools. This includes the introduction of a project management system, the use of artificial intelligence technologies to analyse large amounts of data, and the use of analytical tools to predict market trends. This approach helps to optimise asset management in a changing market environment. The analysis of the main components of the business portfolio formation platform also showed that important factors for the successful implementation of development projects are the speed of response to market changes, flexibility of management decisions, and the ability to minimise risks at all stages of the project.

Transformations of Russian industrial real estate in the context of unstable economy: Literature mapping and review

This study is focused on Russian industrial real estate and mechanisms of its transformation in crisis periods as a sphere of scientific knowledge. The investigated crisis periods are of interest from the perspective of their different nature, which remains a relevant research problem at the interface of economics and politics. The source materials were all types of research literature published from 1940 up to the present, along with state standards in this field. The materials for analysis were collected from the book funds of the Russian State Library and journals of the leading Moscow universities. The collected literature was classified based on three historical periods. These included (1) the war and post-war period of the 40s and up to the mid-70s, when technical literature was published; (2) 90s and 2000s, which passed under the sign of perestroika and general restructuring of industrial enterprises; and (3) the period since 2014 up to the present, characterized by a series of geopolitical events. The conclusion is made that the evolution of scientific knowledge in the field of industrial real estate depends on the nature of the ongoing crisis.

Synthesis of urban real estate development processes

The wave of new industrialization in the Russian Federation, associated with the restoration of a number of industries localized on the territory of the country, as well as the creation of production facilities of a new technological order, required a reassembly of financial and industrial policy and, accordingly, a conceptual rethinking of investment and construction processes. The great importance of cities in solving these problems is undeniable. The dangerous trends of the excessive growth of the service sector and the contraction of the production sector actually nullify the role of cities in solving the priority tasks of the country's development. It becomes obvious that there is a need for the recovery growth of the industrial real estate sector of cities. Despite the fact that the real estate sector is perhaps the most conservative element of the urban environment, that can become a brake on the new industrial wave. In order to prevent this situation, the investment and construction processes of urban development cannot be considered in isolation, they must be predicted, planned and implemented in a synthesized form. The author offers practice-oriented approaches to the synthesis of urban real estate development processes.

THE EFFECT OF BOARD SIZE, PROFITABILITY AND CAPITAL INTENSITY ON TAX AGGRESSIVENESS IN PROPERTY AND REAL ESTATE SECTOR COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE IN 2017 - 2019

The Indonesian property and real estate sector refers to the industry involved in the development, sale, purchase, and management of properties, including residential, commercial, and industrial real estate. This sector is significant in the Indonesian economy due to its contributions to employment, investment, and economic growth. This study aims to comprehensively examine the impact of board size, profitability, and capital intensity on tax aggressiveness within the context of the Indonesian property and real estate sector. Employing a quantitative approach, the research utilizes multiple linear regression analysis with Eviews software version 12 to analyze data from 60 entities in the sector listed on the Indonesian stock exchange from 2017 to 2019. The findings reveal intriguing insights. Board size is found to exert a discernible influence on tax aggressiveness, emphasizing the role of corporate governance in shaping tax strategies. However, the study challenges conventional assumptions by demonstrating that profitability does not significantly impact tax aggressiveness. In contrast, capital intensity emerges as a significant determinant of tax aggressiveness, highlighting the role of financial structure in tax planning decisions. These findings contribute to the understanding of the intricate relationship between corporate governance, financial metrics, and tax strategies in the examined sector. The research underscores the importance of nuanced decision-making in tax planning, acknowledging the varying impacts of different variables. By providing empirical evidence, this study offers valuable insights for practitioners and policymakers aiming to enhance tax strategy effectiveness and transparency.

Interest rates and real estate prices: a panel study

This study examines the connection between interest rates and real estate prices in Switzerland. In considering median prices of six real estate groups consisting of rental apartments, owner-occupied flats, houses, office space, industrial real estate and sales area between the first quarter of 2005 and the fourth quarter of 2018 across 106 Swiss regions, we studied their connection with four interest rate proxies: yields on governmental bonds with 10-year maturity, fixed mortgage rates with 10-year maturity, variable mortgage rates and a newly introduced variable indicating the spread between net initial returns and yields on governmental bonds. Not only do our results show how real estate groups react to specific interest rate representatives, but also how this effect varies between Swiss regions.

What Is Economic Development? And What Is the Job of an Economic Development Professional?

Economic development (EcD) introduces new goods and services into a region's portfolio of traded products or expands the productive capabilities of existing members of a region's economic base. And EcD organizations are intermediaries that reduce risk and transaction costs by honestly representing their community and region to potential business investors. There are five closely related yet separate development practices. Four (community, workforce, housing, and commercial and industrial real estate development) create long-term regional EcD assets. While those assets are required for EcD to occur, they are insufficient to generate EcD outputs. Investments resulting in the production of goods and services are also necessary. EcD is a regional activity because the markets for three of the development practices are regional: labor, housing, and commercial and industrial real estate. Finally, EcD is both an art and a science. The art of EcD is connecting the dots that others cannot see. The science is getting deals done. Together they create investment momentum that builds optimism, generates trust, and mitigates risk.

Methodological principles of forming a mechanism for assessing environmental damage from the functioning and development of industrial real estate within the boundaries of the urban environment

It is not possible to imagine the implementation of investment and construction projects for industrial purposes in isolation from the environment. During the construction and further operation of enterprises, it is necessary to remember the close relationship between nature and man and plan the processes of waste disposal from harmful substances. In pursuit of profit, management often forgets about air and water purification measures, which causes deterioration of the natural environment around the enterprise, complaints from residents, loss of business reputation, and often financial losses due to the need to eliminate the consequences of emissions. Thus, during the construction of industrial facilities, an important task is not only the calculation of profits from operation, but also environmental protection measures, which must necessarily be carried out by enterprises. The growth of the country's economy largely depends on the growth of gross domestic product (GDP). In 1934, when this indicator was first introduced, it was most often used to understand how much the country is ready for hostilities and how many products enterprises can produce to ensure stable functioning. Later, in the 40s, the indicator was associated with the volume of industrial production, since the service sector at that time was poorly developed. And accordingly, the calculation of the GDP indicator was a very necessary mechanism: the growth of GDP per capita from one thousand to 10 thousand. dollars meant a rapid leap in the material well-being of the population.

Distribution facilities in California: A dynamic landscape and equity considerations

This work studies the distribution of warehouses and distribution centers (W&DCs) in California and analyzes their potential relationships with disadvantaged communities (DACs). Through aggregated spatial analyses and econometric modeling, the research compares the concentration of W&DCs in five metropolitan planning organizations (MPOs) in California. The analyses show that the weighted geometric centers of W&DCs have shifted slightly toward city central areas in all five MPOs in the last few years, contrasting to the logistics sprawl trends evidenced in previous research. In the Bay Area and Southern California, W&DCs are more prevalent in areas with higher pollution burden, according to the CalEnviroScreen (CS) score. In Southern California, the study analyzes disaggregate industrial real estate data of 49,697 property transactions (properties sold) between 1989 and 2018. On average, the size of the facilities transacted have decreased, especially for those closer to the urban center. These results are confirmed using parametric and non-parametric data analyses. During recent years, smaller and closer (to the urban core) facilities represent the largest share in the transactions, consistent with the trends in e-commerce and its associated distribution requirements. Moreover, the data show a disproportionate sitting of facilities in areas where DACs reside. The paper ends with a discussion of policy and planning recommendations.

Dynamics between Direct Industrial Real Estate and the Macroeconomy: An Empirical Study of Hong Kong

Pricing of direct industrial real estate (DIRE) has long been under-researched due to the paucity of analysable data. Compared to other types of real estate, DIRE has often been regarded as more inefficient because of information asymmetry amongst market players stemming from a lack of market transparency. Therefore, pricing of DIRE usually does not follow a random walk and should be more predictable than other types of real estate. Along this line of reasoning, this study empirically investigates the causal relationships between the price-to-rent ratio of DIRE and macroeconomic attributes using cointegration and causality techniques. More specifically, we employ data on the market of Hong Kong to investigate the lead-lag relationships between the price-to-rent ratio of DIRE and a wide spectrum of macroeconomic and financial indicators, including inflation, money supply, national income, exchange rates, performance of housing market and other economic indicators specific to the industrial sector. The results of our statistical tests reveal significant evidence that DIRE is generally moving in syncs with other segments of the economy over time in terms of long-term cointegration. Further, DIRE tends to lag behind the overall macroeconomy in terms of Granger causation with the price-to-rent ratio exhibiting varying lengths of time lag with the macroeconomic determinants. The findings of the study carry important implications for informing property valuation practices and industrial land policy, particularly in designing urban revitalization programmes aimed at optimising industrial land use.

Analysis of Real Estate Industry Based on H-P Filter and Tobit Model—— cited 3,614 trading days for 15 companies

As an industry to enhance the national economy and improve people's lives, it is of great significance to accurately analyze the stock price of the real estate industry. Based on this, this paper takes 13 listed companies in the Chinese real estate industry as an example, using the H-P filtering method, OLS regression, and Tobit model to analyze the price of the real estate industry. There are three main research results: (1) After HP filtering analysis, the long-term trend and cyclical fluctuation curve of the stock prices of listed companies in the real estate industry are steep, indicating that China's real estate industry's real estate industry market fluctuates greatly. (2) When making a model prediction, the average daily price of each stock obtained after the Tobit test is the same as that of the OLS prediction, indicating that the core model also has good empirical robustness. (3) During the heterogeneity analysis of stock price, it is found that the regression model fits the residential development industry better than other industries.

A Study on the Factors Influencing Investment Decision-Making in Industrial Real Estate NPL

본 연구는 산업용부동산 담보부 NPL 투자의사 결정에 미치는 영향요인을 분석하고자 NPL 투자전문가들을 대상으로 표적집단면접법(FGI)을 활용하여 요인을 추출하고, 요인별 중요도 분석 및 요인 간 상관관계 분석, 다중회귀분석을 통하여 실증분석 하였다. 연구결과 산업용 부동산 NPL에 투자 시 특성요인 중 NPL특성요인을 가장 중요하게 생각하였으며, 투자성향 특성요인, 산업용부동산특성요인, 매각특성요인 순으로 중요하게 생각하는 것으로 나타났다. 세부적 요인별로 산업용부동산 특성요인 중요도는 관련 산업과의 인접성, 산업용부동산 기반시설, 교통요건, 순으로 중요하게 생각하였고, NPL특성요인 중요도는 OPB, 채권 최고액, 담보 부동산의 감정평가 가격, 순으로 중요하게 생각하였다. NPL매각특성요인 중요도는 채무인수, 경매배당, 론세일 순으로 중요하다고 생각하였으며, 투자성향특성요인 중요도는 회수기간, 환금성, 안정성, 순으로 중요하게 생각하였다. 산업용부동산 담보부 NPL 투자 중요도의 상관관계는 산업용부동산 특성요인과의 연관성, NPL특성요인, 투자성향특성요인, 순으로 높은 상관관계를 보였으며, 산업용부동산 담보부 NPL에 투자의사 결정에 미치는 영향요인을 분석결과 산업용부동산특성 요인과 NPL특성 요인이 유의미한 정(+)의 영향력을 미치는 것을 확인하였다.

Development in construction as an effective form of investment in the real estate market

Importance. A modern form of investment activity in the real estate market isdevelopment. Strengthening the role of the state, external negative pressure (including in the form of sanctions), universal digitalization, a pandemic "shake-up", switching to project financing, changing consumer patterns, reviewing approaches to developing sites and interacting with contractors and creditors, and combining various functions (developer, contractor, service and management companies) within one development company have made significant adjustments to the development of real estate development. It should be noted that we are talking not only about housing stock, industrial (industrial) real estate and commercial sites, but also about public spaces and the entire environment. Objectives. Research focuses on development as an effective form of investment activity in the real estate market. The authors analyzed the problems and prospects for the development of real estate development, determined its place in the investment and construction complex and its role in the socio-economic aspect. Methods. The research used a systematic approach, methods of comparative analysis, synthesis, groupings, observation, abstract-logical and statistical-economic. To achieve the goal of the study, relevant scientific and practical materials and economic literature on the topic were studied, analyzed and summarized. Conclusions and Relevance. It was concluded that the optimization of investment and construction activities can be carried out through development. Being an effective form of real investment in the real estate market, development represents the reaction of the market to emerging needs in society, which cannot be met without changing existing real estate and creating new, including socially significant objects. Developers are a unique figure in the real estate market, since they organically combine entrepreneurial and managerial functions in their activities. Special aspects and problems of development business were identified. When selecting and implementing investment and construction projects, developers should take into account economic, social, environmental and aesthetic aspects.

The prospects of green building developing in Ukraine on example of Poland

This study is an analysis of the data and trends observed in green construction in Ukraine and Poland. Ukraine started developing green building in 2011 and Poland begin in 2008, but despite on little chronologic distance, modern situation in construction industry of these countries has dramatic differences. For today Poland is the leader of Eastern Europe green building with 845 certified objects and four new projects on average are registering every week, while less than 10 certificated green buildings present in all Ukraine. BREEAM is the most popular green certification system in Europe and share 76.8% of total green building market in Poland, but also LEED takes significant shares in education and hotel business, all HQE projects relate to housing, and DGNB appear in logistic and retail. The most perspective sustainable tendency in Poland is increasing green building projects in educational, logistic and industrial sectors. It is could be good example for Ukraine, as well as growing green certification of industrial buildings and residential real estate. Evidence is growing that green buildings bring multiple benefits and driving economic growth around the world. For Ukraine the key factors are promote sustainability in major building companies, create a favorable investment climate, and enlist government support to developing green building.

Inter-Type Investment Connectedness: A New Perspective on China’s Booming Real Estate Market

ABSTRACT This study explores the inter-type real estate investment connectedness in China. We document that: (1) connectedness is strong and time-varying; (2) the residential investment is instrumental in the inter-type investment connectedness network; (3) the total connectedness has dropped since 2008; and (4) the November 2008 Chinese stimulus package has significantly enhanced the influence of the residential and the industrial and other real estate investments. These results reflect both the economic development strategy of Chinese local governments and the importance of central government intervention, therefore providing a new perspective to understand China's booming real estate market during the past two decades.

ANALISIS PERGESERAN STRUKTUR EKONOMI DAN SEKTOR UNGGULAN DI KABUPATEN TABALONG TAHUN 2013-2017

This research aims to find out how are the conditions of shifting economic structure and which sectors are the leading sectors in Tabalong Regency.This research uses a calculating change in the value of sectoral contributions to the formation of GDP, location quotient, dynamic location quotient, classic shift share. By using secondary data in the form of GDP according to employment at constant prices.The results of the study indicate a shift in the economic structure in Tabalong Regency, namely the traditional sector (primary) to the modern sector (tertiary and secondary). And when the mining and quarrying sector's contribution is calculated, there are five leading sectors in Tabalong Regency. The sector is processing, construction, providing accommodation and eating, industrial real estate and other services. But when the mining and quarrying sector contribution was eliminated there were only two superior sectors in Tabalong Regency. The sector includes construction and provision of accommodation and food for drinking. It is known based on the superior criteria of LQ, DLQ, industrial mix (PS) and competitive advantage (DS) which have the highest value among several sectors. Keywords : Structural shift, Leading Sector, Location quotient, Dynamic location quotient, Classic shift share.

RUSSIAN INDUSTRIAL PARKS AS NATURAL INSTITUTES OF DEVELOPMENT

The numerous development institutions created in Russia in general economic terms are not yet sufficiently effective. Now, not only serious work is needed to improve the legal and regulatory framework of their functioning, but also to develop practices for influencing strategic areas of the economy with their help. The problem of establishing the interaction of development institutions with each other is also acute. Against the background of dissatisfaction with the activities of the vast majority of artificially engineered Russian development institutions, it is very favorably allocated industrial parks. Industrial parks are, in fact, the natural development institutions, because, firstly, private capital is actively involved in their creation, and, secondly, the initiative to create parks itself comes from “bottom”, i.e. comes from business, municipal and regional authorities. An analysis of various sources of information (data from the Geoinformation System of Industrial Parks of the Ministry of Industry and Trade of the Russian Federation, the Association of Industrial Parks of Russia and the industrial real estate business company TBI Group) shows that in Russian regions there is interest in the creation of industrial parks from business and local authorities. Based on theanalysis of available data, the paper concludes that skillful support for the rising industry of industrial parks can be very effective in socio-economic terms, since at a relatively low budget costs the real sector of Russian regions can receive a strong development stimulus.

Fast flex: Strategic design for industrial real estate in the age of corporate agility

In view of global hypercompetition and technological change, the strategic management literature observes a shift away from competitiveness based on long-term competence to that based on flexibility. As corporations adopt strategies of corporate agility in production and distribution, they often respond by divesting themselves of fixed landholdings. They increasingly outsource their space needs to real estate developers who act as space providers. While this trend occurs in both office and industrial properties, it is less understood in the latter. Industrial land developers must now quickly (“fast”) adjust properties to fulfill the corporate clients’ demand for flexibility (“flex”). Sites, physical structures, and contracts have to be designed to foster rapid transition from one occupant and building configuration to another and to serve multiple submarkets and client preferences.

Development of CRE data systems : A case study for heterogeneous property portfolios

Corporate real estate management (CREM) has evolved over the past few years, adjusting to the requirements of globalisation. The requirements for the management of corporate real estate (CRE) vary from company to company according to the real estate portfolio to be managed, the asset classes involved, their regional distribution, the scope of management and the level of vertical integration of the CREM organisation. This also dictates the type and scope of real estate management and the management systems to be used. Just as the objectives of CREM in the company must be derived from the objectives of the core business, real estate management and data systems must be derived from the CREM objectives. These will change along with the level of maturity of the CREM organisation. The CRE manager should therefore first determine the status quo of their situation in the company and then define immediate short-term targets and a long-term vision. Based on this, it is advisable to develop the system landscape incrementally. In designing the system, the focus must first be on the required output. This is the basis for the definition of the input variables. It is strongly recommended, however, to keep the number of input variables to be maintained small so that they can be kept up to date with reasonable effort. As a result, this paper first emphasises the specifics of CRE in contrast to the traditional real estate industry. Thereafter, it demonstrates the progress of the step-wise development of the CREM system over a period of almost 20 years. A long-term case study shows the alignment of the development of the management system alongside the development of the CRE organisation, commencing with the challenges of data collection and maintenance, the subsequent setting up of a strategic property database, the integration of rather tactical tasks, up to the ultimate goal of establishing an integrated real estate management system for an internationally operating corporation with a complex and heterogeneous industrial real estate portfolio.

Robots, Automation and the demand for Industrial Space

We utilize the data set developed by Acemoglu & Restrepro (2017) depicting the likely adoption rate of robots by firms in each US MSA. Our focus is on the impact of this automation metric on the market for industrial real estate (factories and warehouses). We get similar results to their negative impacts of automation on local labor markets. Over 1993-2007, MSA with an industry mix that that more rapidly automating are associated with significantly less construction of new industrial space, less growth in overall occupied space, and lower increases in industrial space rents. The use of industry mix based “estimated” robot adoption, and a wide range of applied control variables, suggests that this relationship is causal.