IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i10p6124-d818272.html

Critical Review on Economic Effect of Renovation Works for Sustainable Office Building Based on Opinions of Real-Estate Appraisers

Author

Listed:
  • Kyuman Cho

    (Department of Architectural Engineering, Chosun University, 309 Pilmun-daero, Dong-gu, Gwangju 61452, Korea)

  • Jaeyeon Kim

    (Department of Architectural Engineering, Chosun University, 309 Pilmun-daero, Dong-gu, Gwangju 61452, Korea)

  • Taehoon Kim

    (Department of Architectural Engineering, Chosun University, 309 Pilmun-daero, Dong-gu, Gwangju 61452, Korea)

Abstract

Despite increased renovation work for office buildings to improve energy performance, studies on the appraisal of renovated office buildings (ROB) are scarce. Thus, this study analyzed the perceptions of appraisers regarding renovation work and the effect of renovation work on the economic value of office buildings. Following a reliability evaluation, research results were derived using various methodologies, such as descriptive statistics, Chi-square analysis, analytic hierarchical process, and structural equation modeling, based on the survey results of 118 appraisers. The renovation work was found to positively increase an office building’s value, although the existing appraisal methods have low applicability considering the appraisal of ROB. On evaluating the importance of each factor considered in the ROB appraisal process, the factors related to the “location” of ROB were deemed more important than the attributes directly changed as a result of renovation work. Moreover, factors whose attributes were changed (e.g., working environment, green space, lease area, gross area of floors, number of floors, and number of parking spaces) were found to be critical factors affecting ROB value. The results of this study are expected to provide improvement directions for ROB appraisal methods and significantly aid building owners.

Suggested Citation

  • Kyuman Cho & Jaeyeon Kim & Taehoon Kim, 2022. "Critical Review on Economic Effect of Renovation Works for Sustainable Office Building Based on Opinions of Real-Estate Appraisers," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:6124-:d:818272
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/10/6124/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/10/6124/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter F. Colwell & Henry J. Munneke & Joseph W. Trefzger, 1998. "Chicago's Office Market: Price Indices, Location and Time," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 26(1), pages 83-106, March.
    2. Sofia Dermisi & John F. McDonald, 2010. "Selling Prices/sq.ft. of Office Buildings in Downtown Chicago – How Much Is It Worth to Be an Old But Class A Building?," Journal of Real Estate Research, American Real Estate Society, vol. 32(1), pages 1-22.
    3. Sangeeta Pant & Anuj Kumar & Mangey Ram & Yury Klochkov & Hitesh Kumar Sharma, 2022. "Consistency Indices in Analytic Hierarchy Process: A Review," Mathematics, MDPI, vol. 10(8), pages 1-15, April.
    4. Sarkar, Mb & Aulakh, Preet S. & Cavusgil, S. Tamer, 1998. "The strategic role of relational bonding in interorganizational collaborations: An empirical study of the global construction industry," Journal of International Management, Elsevier, vol. 4(2), pages 85-107, October.
    5. Munneke, Henry J & Slade, Barrett A, 2000. "An Empirical Study of Sample-Selection Bias in Indices of Commercial Real Estate," The Journal of Real Estate Finance and Economics, Springer, vol. 21(1), pages 45-64, July.
    6. Nataša Šuman & Mojca Marinič & Milan Kuhta, 2020. "A Methodological Framework for Sustainable Office Building Renovation Using Green Building Rating Systems and Cost-Benefit Analysis," Sustainability, MDPI, vol. 12(15), pages 1-21, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eli Beracha & William G. Hardin & Hilla Maaria Skiba, 2018. "Real Estate Market Segmentation: Hotels as Exemplar," The Journal of Real Estate Finance and Economics, Springer, vol. 56(2), pages 252-273, February.
    2. Chang, Chuang-Chang & Chao, Ching-Hsiang & Yeh, Jin-Huei, 2016. "The role of buy-side anchoring bias: Evidence from the real estate market," Pacific-Basin Finance Journal, Elsevier, vol. 38(C), pages 34-58.
    3. Nan-Yu Wang & Jen-Yu Lee & Chih-Jen Huang, 2022. "The Effect of the Principal Component Index for Housing Quality Satisfaction on Housing Price: Urban vs. Rural Analysis," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 14(10), pages 1-63, October.
    4. Ugonna, Dr Charity Udodirim & Ochieng, Prof Edward G. & Zuofa, Dr Tarila, 2021. "Augmenting the delivery of public research and development projects in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    5. Liang Peng, 2020. "Benchmarking Local Commercial Real Estate Returns: Statistics Meets Economics," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(4), pages 1004-1029, December.
    6. Daniel Melser, 2023. "Selection Bias in Housing Price Indexes: The Characteristics Repeat Sales Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(3), pages 623-637, June.
    7. repec:rnp:ecopol:ep1545 is not listed on IDEAS
    8. Duong T. Pham & Geoffrey K. Turnbull & Bennie D. Waller, 2022. "Sex and Selling: Agent Gender and Bargaining Power in the Resale Housing Market," The Journal of Real Estate Finance and Economics, Springer, vol. 64(4), pages 473-499, May.
    9. A. Collins & A. E. Scorcu & R. Zanola, 2007. "Sample Selection Bias and Time Instability of Hedonic Art Price Indexes," Working Papers 610, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Zanola, Roberto, 2007. "The Dynamics of Art Prices: The Selection Corrected Repeat-Sales Index," POLIS Working Papers 76, Institute of Public Policy and Public Choice - POLIS.
    11. Marcos Antonio Alves & Ivan Reinaldo Meneghini & António Gaspar-Cunha & Frederico Gadelha Guimarães, 2023. "Machine Learning-Driven Approach for Large Scale Decision Making with the Analytic Hierarchy Process," Mathematics, MDPI, vol. 11(3), pages 1-18, January.
    12. Tse, Chung Yi & Chan, Alex W. H., 2003. "Estimating the commuting cost and commuting time property price gradients," Regional Science and Urban Economics, Elsevier, vol. 33(6), pages 745-767, October.
    13. J. Benjamin & P. Chinloy & G. Jud & D. Winkler, 2007. "Do Some People Work Harder than Others? Evidence from Real Estate Brokerage," The Journal of Real Estate Finance and Economics, Springer, vol. 35(1), pages 95-110, July.
    14. Li, Linwei & Jiang, Feifei & Pei, Yunlong & Jiang, Nengqian, 2017. "Entrepreneurial orientation and strategic alliance success: The contingency role of relational factors," Journal of Business Research, Elsevier, vol. 72(C), pages 46-56.
    15. Kurt, Yusuf & Yamin, Mo & Sinkovics, Noemi & Sinkovics, Rudolf R., 2016. "Spirituality as an antecedent of trust and network commitment: The case of Anatolian Tigers," European Management Journal, Elsevier, vol. 34(6), pages 686-700.
    16. Svajone Bekesiene & Oleksandr Nakonechnyi & Olena Kapustyan & Rasa Smaliukiene & Ramutė Vaičaitienė & Dalia Bagdžiūnienė & Rosita Kanapeckaitė, 2023. "Determining the Main Resilience Competencies by Applying Fuzzy Logic in Military Organization," Mathematics, MDPI, vol. 11(10), pages 1-23, May.
    17. Pawel Tadeusz Kazibudzki, 2023. "The uncertainty related to the inexactitude of prioritization based on consistent pairwise comparisons," PLOS ONE, Public Library of Science, vol. 18(9), pages 1-30, September.
    18. Alessandro Petrontino & Naomi di Santo & Roberta Sisto & Emanuela Tria & Francesco Bozzo, 2025. "Designing a regional wildlife management plan through participatory multi‑criteria methods: evidence from Apulia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-27, December.
    19. Ingrid Nappi-Choulet & Aurélien Decamps, 2012. "The impact of energy efficiency and green performance on the value of corporate real estate portfolios," ERES eres2012_145, European Real Estate Society (ERES).
    20. Albouy, David & Ehrlich, Gabriel, 2018. "Housing productivity and the social cost of land-use restrictions," Journal of Urban Economics, Elsevier, vol. 107(C), pages 101-120.
    21. C. Sirmans & Barrett Slade, 2012. "National Transaction-based Land Price Indices," The Journal of Real Estate Finance and Economics, Springer, vol. 45(4), pages 829-845, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:6124-:d:818272. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.