Friction and Inertia: Business Change, Corporate Real Estate Portfolios and the UK Office Market

Type	Conference Proceedings
Author(s)	Gibson,V. , Lizieri,C. M.
Publication year	1998
URL (web address)	http://www.reading.ac.uk/LM/LM/fulltxt/0398.pdf
Notes	ID: GIBSON1998A; An important snapshot of the impact of cultural norms on the property market in the UK. The authors start with a summary of the changing business world and post fordist economy. They proceed to examine how a sample of 45 organisations (chosen from an expectation that they would be innovators) were responding, in particular with regard to new managerial practices. 85% were outsourcing. 60% had introduced home or flexible working and another 20% were considering it. Organisations were beginning to think in terms of core and peripheral space (though not finding the market differentiating the two). Technological and managerial barriers to change in organisations are confirmed as real however the finding was a lack of new products coming to market. Institutional investors dominate the market and developers are perhaps inclined to regard them, not the tenant, as the customer. Professional advisers tend to the same view. In Summary $Therefore these factors come full circle. If valuers cannot value (or even worse discount value based on their uncertainty) a new product then investors will not fund new initiatives. Without the funding new initiatives will not emerge and the UK property market is faced with stagnation.$$$ $$

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