The economic downturn globally has ended up putting a freeze to the real estate development, the world over; therefore it is unlikely to say that demand and supply is the reason affecting the commercial real estate development and regeneration in any part of the world and specifically Central London area…
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The current trend as indicated in the recently published, Estate Gazette Feb 2009 states the impact of the economic downturn which has resulted in very low pent up demand as not many can afford to do so and who did have already traded .
Location, layout, storey of building, area, height, storage space, interior decoration and construction framework, possibility to sub lease, inter changeability of formats, ownership distribution, availability of utilities, central air conditioning, and the level of management fee. Each of these factors will be elaborated in detail further, which will help in correctly inferring that supply and demand are not the sole factors affecting the value of commercial real estate and its development and regeneration.
Business Improvement Districts (BIDs) gained popularity because of rising crimes, emerging anti social behavior and the environmental problems. In London this evolved as a quite recent phenomenon where the formal drive occurred for the first time in April 2001. Earlier some private were operating already, but then the government announced its very first. Schemes like Town Centre Management had started in 1980s, which were a part of public private partnerships for the benefit of businesses and other stake holders. Since concept of Business Improvement Districts kicked off as a tool for financing the revamping of residential neighbor hoods. Later Government in the Environment Committee of the House of Commons took up a project termed as town improvement zones, this was a bold move for the regeneration of inner city areas. Then in December 2001, further favor in these kind of zones was given Labour Government's white paper Strong Leadership Quality Public Services and this was in reality the first step towards urban regeneration policy.
In 2003 testing was started with some areas - towns and cities, labeled as pilot locations, aimed at discovering the methodology to be adopted in making a Business Improvement District scheme a success; process and experience for managing and evaluating. Following this testing stage, government passed a resolution in 2004.
As earlier mentioned, possibility of sub lease affects the value of a commercial real estate development which will now be further elaborated. Since restrictions on sub leasing affects the flexibility of further renting out a property and thus hugely affects. Since there are two sources of return from property - one, the savings that comes in the form of opportunity cost too and another from the rental income that is earned when property is given to be utilized by someone else. And unlike other assets, since property does not depreciate but there is always a hope of potential development and there is always a risk and return that is uncertain how these returns will move in future. All developers and investors base their decisions on number of factors - current income and future return generation capacity.
Leasing patterns have a great impact on the development and regeneration of the commercial real estate. This is visible from the 1989 UK's market crash which tended to change the relationship that earlier governed between landlords and business tenants (Estates Gazette). Earlier it was
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(Commercial Real Estate Development Essay Example | Topics and Well Written Essays - 2500 Words)
“Commercial Real Estate Development Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/business/1515734-commercial-real-estate-development.
One of the options that have increasingly being adopted is real estate based on the benefits it has offered in the past years. This change in market dynamics has moved individual investors to real estate investment along with institutional investors (IPF, 2007).
Because of this, real estate markets are modeled as a stock/flow market. About 98% of supply consists of the stock of existing houses, while about 2% consists of the flow of new development. New building only takes place if property prices rise above replacement costs.
If the curious were to probe even further into the concepts held about real estate, it would be possible to find that most people agree that real estate can include the many different actions involved in the buying, trading, selling, and renting of the land itself.
While Dubai, considered as the commercial and investment hub, has emerged as the forerunner in the tourism and construction sectors. These two emirates (Abu Dhabi and Dubai) are still the dominant economic players in the country.
The UAE is extremely rich in oil and, even though it lacks other natural resources, it expects current additional economic diversification to portray new financial as well as banking firms.
A full list of the references employed has been included.
The Shanghai market has been the focus of much attention in China and abroad as its real estate markets takes off with impressive vigor. Since the 1997 Asian Financial Crisis, Shanghai has succeeded in capitalizing on the demand for prime Asian commercial real estate by opening up its markets to foreign investors and local purchasers alike.
In acquiring the land, appropriate steps shall be followed to make sure that the developments which shall be erected on the land will be a valuable asset to anybody who shall acquire it later.
In the area where the land is located the highest number of floors a building
real estate development companies, public corporations, corporate acquisitions and mergers that offer high future growth prospects in employment (Fitch 6). The job offers high financial rewards and personal growth opportunities thus contributing to self-actualization
It is also the most preferred area for establishing multinational media corporations (Carlyle, 2014). In addition, it hosts top notch Universities in the world. The borough is divided into three towns, lying in
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