Multi-Criteria Optimisation of an Experimental Complex of Single-Family Nearly Zero-Energy Buildings

The Directive 2010/31/EU on the energy performance of buildings has introduced the standard of “nearly zero-energy buildings” (NZEBs). European requirements place the obligation to reduce energy consumption on all European Union Member States, particularly in sectors with significant energy consumption indicators. Construction is one such sector, as it is responsible for around 40% of overall energy consumption. Apart from a building’s mass and its material and installation solutions, its energy consumption is also affected by its placement relative to other buildings. A proper urban layout can also lead to a reduction in project development and occupancy costs. The goal of this article is to present a method of optimising single-family house complexes that takes elements such as direct construction costs, construction site organisation, urban layout and occupancy costs into consideration in the context of sustainability. Its authors have analysed different proposals of the placement of 40 NZEBs relative to each other and have carried out a multi-criteria analysis of the complex, determining optimal solutions that are compliant with the precepts of sustainability. The results indicated that the layout composed of semi-detached houses scored the highest among the proposed layouts under the parameter weights set by the developer. This layout also scored the highest when parameter weights were uniformly distributed during a test simulation.

Lease structures and occupancy costs in eco-labeled buildings

Purpose The purpose of this paper is to investigate whether energy-efficient green buildings tend to provide net lease structures over gross lease ones. It then considers whether owners benefit by trading away operational savings in a net lease structure. Design/methodology/approach Empirical models of office leasing transactions in Sydney, Australia, with wider transferability supported by analysis of office rent data in the USA. Findings Labeled green buildings are approximately four to five times more likely than non-labeled buildings to use a net lease structure. However, despite receiving operational savings, tenants in net leases pay higher total occupancy costs (TOC), benefiting owners. On average, the increase in TOC paid by tenants in a net lease is equal to or greater than savings attributed to an eco-labeled building. Practical implications A full accounting of TOC in eco-labeled buildings suggests that net lease structures provide numerous benefits to owners that offset the loss of trading away operational savings. Originality/value The principal-agent market inefficiency, or “split incentive,” is a widely cited barrier to private investment in energy-efficient building technology. Here, a uniquely broad look at rental cash flows suggests its role as a barrier is exaggerated.

Corporate real estate and performance: evidence from Italian manufacturing sectors

Purpose The purpose of this paper is to analyse the effect of real estate weight on Italian manufacturing companies and the effect of occupancy costs on income. The main purpose is to understand whether the ownership of properties, for non-real-estate companies, has an impact on performance. Design/methodology/approach The empirical research was carried out for a 10-year period (2004-2013) with a sample of 300 manufacturing companies belonging to six sub-sectors of the manufacturing sector. In the second part, a cluster analysis was conducted to identify better and more poorly performing companies. Companies were classified in different clusters according to their ROA, debt ratio and liquidity ratio. The analysis from the first part was repeated to verify the differences between the clusters with respect to their real estate holdings. Findings First, the authors found that manufacturing sub-sectors do not differ in terms of real estate holdings. They found that real estate holdings affect performance: companies with lower real estate asset weight and higher occupancy costs perform better. Research limitations/implications The main contribution of the paper is the finding that most Italian manufacturing companies do not take into account corporate real estate (CRE) decisions and the trade-off between ownership and leasing, thus showing that they are ineffective at CRE management. Practical implications It could be wise to pay more attention to the existing trade-off between the occupancy costs and the holdings of real estate as ownership, as a significant negative correlation between the two indicators was found for the best performing companies. However, the level of this correlation was still rather small. Moreover, to increase performance, companies should be able to recognise that maintaining constant investments in CRE is a better solution than increasing these investments and locking more capital into illiquid assets (which have lower returns than the core business), especially during periods of turmoil and financial crisis. Originality/value For the first time, the Italian manufacturing sector has been widely investigated.

Real Estate Financing Techniques Can Be Motivational Tools

Internal financing decisions regarding corporate real estate are not market determined. Managers calculate occupancy costs by utilizing capital allocations, financial charges, and IRRs. This process can be rather arbitrary. Although newer costing systems produce more accurate numbers, they may not create better working relations. This article demonstrates that desired organizational behavior in some instances may be motivated more effectively with three imprecise financial techniques than with truly accurate costing.