Tim Dixon

Lessons from the private finance initiative in the UK: benefits, problems and critical success factors

Purpose – This paper summarises the main research findings from a detailed, qualitative set of structured interviews and case studies of private finance initiative (PFI) schemes in the UK, which involve the construction of built facilities. The research, which was funded by the Foundation for the Built Environment, examines the emergence of PFI in the UK. Benefits and problems in the PFI process are investigated. Best practice, the key critical factors for success, and lessons for the future are also analysed.Design/methodology/approach – The research is based around 11 semi‐structured interviews conducted with stakeholders in key PFI projects in the UK.Findings – The research demonstrates that value for money and risk transfer are key success criteria. High procurement and transaction costs are a feature of PFI projects, and the large‐scale nature of PFI projects frequently acts as barrier to entry.Research limitations/implications – The research is based on a limited number of in‐depth case study interv...

Integrating Sustainability into Brownfield Regeneration: Rhetoric or Reality? – An Analysis of the UK Development Industry

In the UK and elsewhere the use of the term ‘sustainable brownfield regeneration’ has resulted from the interweaving of two key policy themes, comprising ‘sustainable development’ and ‘brownfield regeneration’. This paper provides a critical overview of brownfield policy within the context of the emerging sustainable development agenda in the UK, and examines the development industrys role and attitudes towards key aspects of sustainable development and brownfield regeneration. The paper analyses results from a survey of commercial and residential developers carried out in mid‐2004, underpinned by structured interviews with eleven developers in 2004–2005, which form part of a two‐and‐half‐year EPSRC‐funded project. The results suggest that despite the increasing focus on sustainability in government policy, the development industry seems ill at ease with precisely how sustainable development can be implemented in brownfield schemes. These and other findings, relating to sustainability issues (including the impact of climate change on future brownfield development), have important ramifications for brownfield regeneration policy in the UK. In particular, the research highlights the need for better metrics and benchmarks to be developed to measure ‘sustainable brownfield regeneration’. There also needs to be greater awareness and understanding of alternative clean‐up technologies to ‘dig and dump’.

The Role of Retailing in Urban Regeneration

Recent ‘best practice’ research and guidance has emphasised the important role that can be played by retail-led urban regeneration projects, particularly in ‘under-served markets’ in the UK. This builds on ideas first formulated in the USA by Michael Porter through his close relationship with the Initiative for the Competitive Inner City (ICIC). This paper critically examines the role of retailing in urban regeneration nationally and locally in the UK, focusing on in-town shopping centres located in inner city areas of the UK. The paper is based on case study research in these centres, and was completed during 2003 for The Office of Science and Technology. The paper examines how employment impact in retail-led regeneration is commonly measured, and calls for more research to determine the real impact of retail in deprived communities using other, relevant measures.

Is there a demand for sustainable offices? An analysis of UK business occupier moves (2006–2008)

‘Sustainable’ or ‘green’ commercial buildings are frequently seen as a growth sector in the property investment market. This research examines the emergence of sustainable commercial buildings in both the UK and overseas. The empirical part of the paper is based on a telephone survey of 50 UK corporate (private sector) occupiers taking leased and owner–occupied office space, which was carried out during the period of April to November 2008. The survey focused on actual moves made within the previous two years, or moves that were imminent during 2006–2008. The research suggests that although there is an emerging and increasing demand for sustainable offices in the UK, other factors such as location and availability of stock continue to remain more important than sustainability in determining occupiers’ final choice of office. Occupiers who moved to a Building Research Establishment Environmental Assessment Method (BREEAM)‐rated building, and were in business sectors with strong environmental and corporate responsibility policies, placed more emphasis on sustainability than other groups in the final choice of office, but location and availability remained paramount.

U.K. Retail Real Estate and the Effects of Online Shopping

can be more secure in the view that shoppers will continue to shop in physical stores and “pure play” e-tailers will have their work cut out just to stay afloat. Our research, presented in this paper, shows that conventional store-based shopping in the U.K. is certainly not dead. However, e-commerce will continue to have an effect on future patterns of real estate development through its impact on shoppers and retailers. “E-commerce” is commonly viewed as trade that actually takes place on the Internet, usually through a buyer visiting a seller’s Web site and making a transaction there. However, the term has evolved from this fairly limited notion to mean all aspects of business and market processes enabled by the Internet and World Wide Web technologies. The impact of the Web is global and affects processes within businesses, between businesses, and between businesses and consumers. The U.K. Cabinet Office defines the term more formally as:

Lessons from real estate partnerships in the UK: Drivers, barriers and critical success factors

Purpose – This paper seeks to summarise the main research findings from a detailed, qualitative set of structured interviews and case studies of Real Estate Partnership (REP) schemes in the UK, which involve the construction of built facilities. The research, which was funded by the Foundation for the Built Environment, examines the evolution of REPs in the UK and in Europe. The paper also aims to analyse best practice, critical factors for success, and lessons for the future.Design/methodology/approach – The research in this paper is based around ten semi‐structured interviews conducted with senior representatives from corporate occupiers, property consultants, legal practices and REP service providers.Findings – The research in the paper demonstrates that REPs are particularly suited to the UK, where lease lengths are relatively long, and the level of corporate real estate owner‐occupation is often higher than elsewhere. It also shows that further research is needed to examine the future shape and form ...

Critical Success Factors in Urban Brownfield Regeneration: An Analysis of ‘Hardcore’ Sites in Manchester and Osaka during the Economic Recession (2009–10):

Hardcore, or long-term derelict and vacant brownfield sites which are often contaminated, form a significant proportion of brownfield land in many cities, not only in the UK but also in other countries. The recent economic recession has placed the economic viability of such sites in jeopardy. This paper compares the approaches for bringing back hardcore brownfield sites into use in England and Japan by focusing on ten case studies in Manchester and Osaka, using an ‘agency’-based framework. The findings are set in the context of (i) national brownfield and related policy agendas; (ii) recent trends in land and property markets in both England and Japan; and (iii) city-level comparisons of brownfields in Manchester and Osaka. The research, which was conducted during 2009–10, suggests that hardcore brownfield sites have been badly affected by the recent recession in both Manchester and Osaka. Despite this, not only is there evidence that hardcore sites have been successfully regenerated in both cities, but also that the critical success factors (CSFs) operating in bringing sites back into use share a large degree of commonality. These CSFs include the presence of strong potential markets, seeing the recession as an opportunity, long-term vision, strong branding, strong partnerships, integrated development, and getting infrastructure into place. Finally, the paper outlines the policy implications of the research.

E‐commerce and retail property in the UK and USA

Presents findings from separate research projects conducted in the UK and the USA on the impact of e‐commerce on retailers and retail property. Examines differences between UK and US retailers along several dimensions: Internet strategies, perceptions of the Internet, barriers to e‐commerce growth, and future space requirements. Overall, findings indicate that UK and US retailers have similar attitudes about e‐commerce. Specifically, retailers in both samples perceive little threat or impact from e‐commerce. Second, barriers to e‐commerce growth are similar for UK and US retailers and include fulfillment and security issues. Third, UK and US retailers indicate that their retail space needs will remain the same or increase in the short term, despite the threat of e‐commerce. Finally, both sets of retailers believe that entertainment is an important strategy if shopping centers are to remain viable.

The impact of information and communications technology on commercial real estate in the new economy

Purpose – This paper seeks to critically review the conceptual frameworks that have been developed for assessing the impact of information and communications technology (ICT) on real estate.Design/methodology/approach – The research is based on a critical review of existing literature and draws from examples of previous empirical research in the field.Findings – The paper suggests that a “socio‐technical framework” is more appropriate to examine ICT impact in real estate than other “deterministic” frameworks. Therefore, ICT is an important part of the new economy, but must be seen in the context of a number of other social and economic factors.Research limitations/implications – The research is based on a qualitative assessment of existing frameworks, and by using examples from commercial real estate, assesses the extent to which a “socio‐technical” framework can aid understanding of ICT impact.Practical implications – The paper is important in highlighting a number of the main issues in conceptualising I...

Scaling up: the challenges of urban retrofit

The notion of ‘retrofitting’ or re-engineering the existing urban environments has gained increasing prominence within research and policy agendas in recent years (Cole, 2012; Dawson, 2007; Kelly, 2009; Sustainable Development Commission, 2010). At a global scale, an increasing concentration of the growing human population within urban centres has focused attention on the role of cities in climate change mitigation and adaptation, and in achieving the broader overarching requirements of sustainable development (UN Habitat, 2011; World Bank, 2011). Whilst cities are seen as being the source of many environmental and resource depletion problems, they are also recognized as centres of major population that offer huge potential opportunities in ‘scaling up’ technological responses to climate change and as ‘hubs’ of innovative social practice and learning (Hodson & Marvin, 2010).