Gardner, Alan

Project Title

The True Cost of Owning and Managing Commercial Property in the UK


The project will define and publish a range of aggregated expenditure variables leading to more realistic measures of commercial property investment performance. These variables will include, but not be limited to, the true costs of maintenance and environmental issues.

We will seek to open up various areas of research that can build on the initial results. The intention is to make the research relevant and usable to industry practitioners by combining theoretical research techniques with substantial practical experience in how such research is integrated in the investment planning process at portfolio and asset levels.

Given the challenges resulting from the scale of refurbishment required to meet environmental/sustainability standards and other issues, we explore how various forms of anticipated expenditure will impact on expected returns over the medium term. This is particularly relevant given the expected level of long-term real interest rates and related squeeze on estimated IRR's that commercial property faces.


Professor Colin Jones and Professor Neil Dunse