Real Estate Appraisal and Management
Although the boundaries between the Centre’s research in investment and finance and real estate appraisal and management are often blurred, there are three key themes around which individual research interests are built: valuation and pricing models that can accommodate changing economic and technological environments; the study of processes involved in professional practice; and the growing importance of corporate real estate management. Once again the individuals with a primary interest in this area are internationally recognised as amongst the leaders in their respective fields.
Researchers in this group play an important role in altering perceptions about the nature of property valuation and professional practice. Andrew Baum, Neil Crosby, Nick French and Pat McAllister play a major role in UK academic and professional research and are directly involved in implementing new valuation techniques and influencing policy through membership of key professional advisory and policy committees, professional conferences and the authorship of professional guidance.
Changing occupational and lease forms present particular problems for traditional valuation practice and Crosby, French and Ward have examined option pricing models for leases with unusual review patterns or break clauses. McAllister, Baum and Crosby have carried out research funded by the IPF, Jones Lang LaSalle and the RICS on the influence of valuation on the commercial investment market. This made an important contribution to the new international body of behavioural research into valuation and has provoked heated discussion in the professional press.
The Investment Property Forum (IPF) is currently funding a number of projects, most of which are collaborative. Crosby, Baum and Vicki Law have recently completed a project with IPD on Depreciation in UK Commercial Property Markets. This project has reviewed the measurement and benchmarking framework for depreciation studies and carried out a detailed study of the Investment Property Databank to attempt to identify the impact of depreciation on both rental and capital values and returns.
McAllister is engaged on several collaborative projects. These include, Behavioural Influences on Information Processing and Decision-Making in Property Investment Stock Selection with Paul Gallimore (Georgia State University); The accuracy of UK forecasters with Matysiak and Graeme Newell (University of Western Sydney); and the Lease Code and lease pricing with Ward; Neil Turner (Alecta Investment Management) and Ian Cullen (Investment Property Databank).
Professional practice has been the subject of much of Crosby’s work. The prime example of this has been the long running and major study, funded by the Office of the Deputy Prime Minister (ODPM) which has been examining the operation of the code of practice on commercial leases. The most recent report monitors the operation of the 2002 Code of Practice for commercial leases and is the latest instalment in a long running policy debate concerning the operation of the commercial property landlord and tenant relationship in the UK. Crosby has also recently completed major ESRC funded project, in collaboration with Sandi Murdoch and John Murdoch (both in the Law School at Reading) and Lavers (Oxford Brookes) on the Status of Property Valuations.
The Department is now able to engage directly with industry from time to time through the Knowledge Transfer Partnership (KTP) scheme. Funded in part by the DTI, this form of project enables academics to work closely with industry on projects that are industry led, but which benefit from academic ‘thinking’ and research expertise. The Department’s first such project is under way, with Byrne working with the ‘industry client’ - the Thames Valley Housing Association. The project has as its objective the development of an advanced asset management strategy and system for the company that goes beyond that offered by existing approaches.
Gibson continues to produce pioneering work on corporate real estate management. There has been a growing recognition of the importance of corporate real estate with the internationalisation of NACORE, IDRC and the establishment in the UK of the Corporate Occupier Group – all have called upon her expertise on committees and research groups. She is on the editorial board of the Journal of Corporate Real Estate and has worked collaboratively with leading researchers in North America and mainland Europe.
Gibson and Luck recently completed research for the UK Office of Government Commerce extending earlier work by Gibson, Lizieri and Oughton on the impact of flexible working on government property requirements. Their previous report was circulated widely amongst Whitehall departments. French is also active in the area f corporate real estate, working with Jonathan Edwards and more recently with Donaldsons who provide financial support and collaboration for studies linking valuation and changing occupational needs.