Editorial

Citation

Warren, C. (2012), "Editorial", Property Management, Vol. 30 No. 3. https://doi.org/10.1108/pm.2012.11330caa.001

Editorial

Article Type: Editorial From: Property Management, Volume 30, Issue 3

As I prepare this editorial the International Green Cities conference is about to start with leading practitioners and academics assembling from around the world to discuss the latest in sustainable building. This Green Building Council event, like many similar recent events, provides a focus on the relationship between building efficiency and the effectiveness of the workplace. Property managers deal with these competing aspects of modern buildings on a daily basis. It is increasingly evident from research published in Property Management and elsewhere that green, or sustainable buildings, if built and managed properly, are capable of delivering savings in terms of operating costs and, as a consequence, are frequently able to attract tenants at enhanced rentals. It is also evident that, while these sustainable building might be more efficient in terms of operating costs, the real benefits often lie in the effective use of space planning and in providing a workplace which enhances productivity. Improved environmental air quality and other environmental aspects, such as lighting and views, all add to this increased effectiveness of the workplace.

It is also becoming evident that, while the new high-ranking sustainable buildings are receiving considerable attention in the commercial property markets, the rate at which the stock of building is replaced is relatively slow at an estimated 2 per cent per annum. This leaves a large number of buildings that were constructed in the “unsustainable era” and are now experiencing a heightened level of functional and economic obsolescence as a result of our adoption of the sustainability agenda. What is increasingly apparent is that sustainable buildings which exhibit a moderate level of LEED, BREEAM or Green Star ranking are becoming the market norm and, rather than delivering a green premium in terms of rent and capital value, it is the older buildings which are exhibiting a “Brown Discount,” reflecting the increasing obsolescence of these buildings. In order to address this rapid obsolescence property managers and building owners will need to embrace refurbishment and adaptive reuse of these buildings in order to stay, or reverse, this economic decline. The first paper in this issue picks up on this theme and it would be pleasing to see an increased level of research being undertaken in this important area for property managers.

Once again this edition of Property Management reflects the strong property research agenda in Europe and Asia as it includes a collaborative paper with one author from each of these regions. There is also a good mix between the market sectors researched with commercial and residential both represented. The first paper in this edition provides a very interesting comparison between the office markets in the Netherlands and Melbourne, Australia, with a focus in the relative ability with which older properties are able to be adapted to a more sustainable use. As discussed above, this area of research is one of growing international interest as our office markets begin to demonstrate a widening gap between modern offices built with a sustainability agenda and those older buildings, which were constructed to a far less stainable specification.

The next two papers have a finance focus; one addressing property valuation and the second investment. The paper by Peader Davis et al. entitled “An empirical analysis of simplified valuation approaches for residential property tax purposes” is based on research undertaken at the University of Ulster and analyses a large property database in order to establish a methodology for simplified mass valuation which might then be used as a basis for establishing property tax charges based on the derived property value. The second finance paper, presents a detailed analysis of the Hong Kong residential market and the correlation of house prices with the stock market over a 16-year period between 1990 and 2006. The research will be of particular interest to investors and portfolio managers looking for diversification options within the region. While these two papers have a finance and valuation focus, they are highly relevant to the property management industry and, in particular, asset managers with large residential property portfolios where any insight into asset value and market fluctuations becomes a valuable tool.

The fourth paper in this issue is from Australia and, while it is quite narrowly focused on the Adelaide residential market, the findings are likely to have a much wider application around the world as many developed countries seek to increase the housing density within our ever-expanding cities. The paper shows that government policy initiatives are having an effect in modifying suburb built form characteristics but that these are not necessarily resulting in any shift in the characteristics of the local population. Property Management’s final paper for this issue is from Malaysia and reports on research undertaken at Universiti Sains Malaysia. The paper seeks to analyse how housing needs of students within university accommodation is satisfied and investigates the relationship between a sense of place and specific housing preferences. This paper makes an important contribution to our understanding of accommodation preferences and will be more relevant as student numbers continue to grow and property managers strive to meet the growing demand for accommodation.

I hope that you enjoy this issue of Property Management and find the research presented interesting. I would again urge you to provide feedback on the content and to join in the discussion forum on LinkedIn. If you are not already a member of this group, I encourage you to join us by simply searching for “Property Management – Emerald Publishing Group” at www.linkedIn.com. You are also able to tweet at @EmeraldBuiltEnv or @CliveMJWarren.

I look forward to discussing this and future issues with you online.

Clive Warren