John R. Mansfield

What’s in a name? Complexities in the definition of “refurbishment”

The lifecycle of a building is supported by a number of distinct processes that attempt to address physical deterioration. Many of the processes – maintenance, repair, replacement and refurbishment – are commonly discussed in ways that suggest that they are indistinguishable from each other. The comparative lack of precision in using a range of terms further blurs the boundaries between the tasks. “Refurbishment” may seem to be a simple term, yet its complexity has led to continuing confusion by policy‐makers and professionals. Many of the attempts to provide an inclusive and concise definition of “refurbishment” have significant flaws, compounding the problem in practice.

The assessment of risk in conservation refurbishment projects

A literature review suggested that conservation refurbishment work was perceived by design professionals to be inherently more risky than new‐build projects. The objective assessment of risk items helps ameliorate its impact. The results of a large questionnaire‐based survey evaluating specialist design consultants’ risk identification and management approaches are presented. The risk management approaches of specialist design consultants are divergent, reflecting their professional philosophies, educational programmes and experience. Further differences emerge according to practice size and contract value. Particular attention is paid to the responses considering contingency pricing, project budget forecasts and extensions of time. Results suggest that client education via briefing and consultants’ wider use of confidence limits can help improve the management of risk.

“Economic” and “functional” obsolescence: Their characteristics and impacts on valuation practice

Purpose – This paper has three principal aims: to briefly consider the term “depreciation” in the context of property values; to critically review the term “obsolescence” and two of its distinct forms; and to highlight the practical difficulties in pricing obsolescence using inflexible methodologies in a market place that is subject to evolving criteria.Design/methodology/approach – The paper critically reviews existing literature and advice from international professional bodies.Findings – The general conclusions are that despite the need to be more explicit in valuations, current methods are unable to address such detail. The guidance and advice offered by professional bodies need to be thoroughly revised. It is hoped that the progress being made in methodology will be incorporated in directed guidance to practitioners.Originality/value – The paper offers an applied examination of an issue that has an impact on many aspects of contemporary real estate consultancy services.

Sustainable refurbishment: policy direction and support in the UK

Purpose – This paper has three principal aims – to examine the development of international policy direction for sustainability in the built environment; to highlight the contribution that the legacy stock could make to the various sustainability targets through sustainable refurbishment; and to review the UK governments direct and indirect support of sustainable refurbishment.Design/methodology/approach – The paper critically reviews international and national policy documents and associated professional commentary.Findings – The general conclusions are that the international targets for energy efficiency and carbon dioxide reduction within the built environment are focused on new‐build schemes. The annual replacement rate of the existing stock is minimal; thus the legacy stock will dominate for a considerable time. Sustainable refurbishment could provide significant financial benefits to investors and occupiers in addition to positively contributing to various sustainability targets. The UK government ...

The valuation of sustainable freehold property: a CRE perspective

Purpose – In the increasingly hostile operating environment, corporate real estate (CRE) executives are beginning to recognise the importance of sustainability within their freehold property portfolios. To assist in decision‐making, external valuations are regularly commissioned. The purpose of this paper is to examine the practical difficulties associated with incorporating sustainability criteria in the valuation methodology as valuation outcomes inform CRE decision‐making at strategic and tactical levels.Design/methodology/approach – This paper takes the form of a detailed and critical literature review.Findings – It is widely acknowledged that sustainability has become a key driver of many business decisions. Corporate entities can achieve a considerable range of tangible and intangible benefits from sustainable real estate in their freehold portfolios. While substantial progress has been made toward understanding the dynamics of the sustainable real estate market, the valuation of such assets is rath...

Sustainable refurbishment: some practical regulatory hurdles

Purpose – The purpose of this paper is to draw attention to some of the practical difficulties that exist within the current regulatory framework that is guiding refurbishment practice with regard to improving energy efficiency and reducing carbon emissions.Design/methodology/approach – The paper presents a critical review of Building Regulations Approved Document L2B, the current models for measuring energy and carbon emissions and third‐party certification schemes.Findings – Sustainable refurbishment programmes can incorporate various measures and technologies to help to address the current efficiency and emission targets. Yet while specific improvements to energy efficiency and carbon emission may be technically possible, it seems that they are unnecessarily hampered by a series of hurdles.Originality/value – The paper offers a detailed and applied consideration of three regulatory issues that can affect the achievement of sustainable measure targets in sustainable refurbishment projects.

Sustainable refurbishment: the potential of the legacy stock in the UK commercial real estate sector

Purpose – The purpose of this paper is to show three principal aims – to highlight the gap in the international energy efficiency and carbon emission targets in relation to existing commercial real estate; to examine the contribution that such legacy stock could make to the various targets; and to provide commentary on some of the measures that are being introduced to support sustainable refurbishment in the legacy stock.Design/methodology/approach – The paper critically reviews recent academic, policy and practitioner publications.Findings – The international sustainability agenda is being driven through via a “top‐down” approach. Targets are largely concentrated on new‐build provision and there is a limited focus on existing stock. The annual rate of replacement of commercial sector stock is minimal. Unless the existing commercial stock is addressed in a meaningful way, other measures used to address anthropogenic climate change will be undermined.Originality/value – The paper offers an applied examinat...

The ethics of conservation: some dilemmas in cultural built heritage projects in England

Purpose – The paper aims to offer a contribution to the development of conservation scheme management by examining some of the ethical dilemmas that are commonly encountered in conservation projects.Design/methodology/approach – The approach is a detailed and critical review of existing literature and recent policy direction.Findings – A practitioners response to the various dilemmas will not only need to be conditioned by the codes of conduct of the various professional institutions but also through the explicit recognition of the very different set of ethical dilemmas that are encountered in conservation projects.Originality/value – The paper contributes to the broader appreciation of the ethical dilemmas that may be encountered in contemporary conservation practice. The paper can inform conservation consultants, administrators, specialist trades, educators and the non‐specialist reader.

Shaping the future: The impacts of evolving international accounting standards on valuation practice in the UK and Germany

The continued globalisation of investment has led to revisions in various regulatory systems and to the development of internationally applicable standards and codes of practice. As a significant asset of many businesses, real estate values are a key element of the financial detail included in annual reports. Accordingly, valuation standards have evolved to align with the requirements of accounting and banking sectors. The international demand for standardised regulatory systems and processes has many benefits and it is of critical importance for valuers not only to be fully aware of the changes in the various influencing regulatory systems but to recognise their changed responsibilities, particularly if third parties are likely to rely upon their valuations.

Investment property portfolio management and financial derivatives: Paper 1

Derivatives have been an expanding and controversial feature of the financial markets since the late 1980s. They are used by a wide range of manufacturers and investors to manage risk. This paper analyses the role and potential of financial derivatives investment property portfolio management. The limitations and problems of direct investment in commercial property are briefly discussed and the main principles and types of derivatives are analysed and explained. The potential of financial derivatives to mitigate many of the problems associated with direct property investment is examined.