Routledge companion to real estate development

453 Pages·2018·5.886 MB·English

by  Heurkens, Heurkens Erwin W. T. M., Peiser, Richard B., Squires, Graham

Routledge Companion to
Real Estate Development
Real estate development shapes the way people live and work, playing a crucial role in
determining our built environment. Around the world, real estate development reflects both
universal human needs and region-specific requirements, and with the rise of globalization
there is an increasing need to better understand the full complexity of global real estate
development. This Companion provides comprehensive coverage of the major contemporary
themes and issues in the field of real estate development research. Topics covered include:
• social and spatial impact
• markets and economics
• organization and management
• finance and investment
• environment and sustainability
• design
• land use policy and governance.
A team of international experts across the fields of real estate, planning, geography, economics
and architecture reflect the increasingly interdisciplinary nature of real estate studies, providing
the book with a depth and breadth of original research. Following on from the success of the
textbook International Approaches to Real Estate Development, the Routledge Companion to Real
Estate Development provides the up-to-date research needed for a full and sophisticated
understanding of the subject. It will be an invaluable resource to students, researchers and
professionals wishing to study real estate development on an international scale.
Graham Squires is Associate Professor and Head of Property Group at Massey University,
New Zealand.
Erwin Heurkens is Assistant Professor of Urban Development Management at Delft
University of Technology, the Netherlands.
Richard Peiser is the Michael D. Spear Professor of Real Estate Development at the Harvard
Graduate School of Design, USA.

Routledge Companion to
Real Estate Development
Edited by Graham Squires, Erwin Heurkens and
Richard Peiser
First published 2018
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2018 selection and editorial matter, Graham Squires, Erwin Heurkens and
Richard Peiser; individual chapters, the contributors
The right of Graham Squires, Erwin Heurkens and Richard Peiser to be
identified as the authors of the editorial material, and of the authors for their
individual chapters, has been asserted in accordance with sections 77 and 78
of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered
trademarks, and are used only for identification and explanation without
intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Squires, Graham, editor. | Heurkens, E. (Erwin W. T. M.), editor. |
Peiser, Richard B., editor.
Title: Routledge companion to real estate development / [edited by] Graham
Squires, Erwin Heurkens, Richard Peiser.
Description: Abingdon, Oxon ; New York, NY : Routledge, 2018. | Includes
bibliographical references and index.
Identifiers: LCCN 2017005843 | ISBN 978-1-138-91434-6 (hardback : alk.
paper) | ISBN 978-1-315-69088-9 (ebook : alk. paper)
Subjects: LCSH: Real estate development.
Classification: LCC HD1390 .R68 2018 | DDC 333.73/15—dc23
LC record available at https://lccn.loc.gov/2017005843
ISBN: 978-1-138-91434-6 (hbk)
ISBN: 978-1-315-69088-9 (ebk)
Typeset in Bembo by
FiSH Books Ltd, Enfield
Contents
List of figures ix
List of tables xii
Contributors xiv
Acknowledgments xxii
1 Real estate development: an overview 1
Graham Squires, Erwin Heurkens, and Richard Peiser
PART I
Social and spatial impact of real estate development 11
2 Leveraging property values for metro railway development in
Hong Kong: experiences and lessons 13
Bo-sin Tang
3 Teardowns and reinvestment in the inner-ring suburbs of Chicago 28
Suzanne Lanyi Charles
4 Public real estate development projects and urban transformation:
the case of flagship projects 43
Nadia Alaily-Mattar, Johannes Dreher, Fabian Wenner, and Alain Thierstein
PART II
Markets and economics of real estate development 57
5 Investment and development behavior following the Great Recession 59
Raymond G. Torto
6 Land use policies and markets in some selected African countries 70
Moses M. Kusiluka, Sophia M. Kongela, and Karl-Werner Schulte
v
Contents
7 Residential prices, housing development, and construction costs 80
Paloma Taltavull de La Paz and Raul Pérez
8 Retail market analysis for development projects: coping with new
frontiers in retailing 94
Petros Sivitanides
PART III
Organization and management of real estate development 105
9 Private sector-led urban development: characteristics, typologies,
and practices 107
Erwin Heurkens
10 Building and leading high performance real estate companies 122
Frank Apeseche
11 Strategic management systems for real estate development 138
Paul H. K. Ho
12 Organizing public–private partnerships for real estate development
through urban finance innovation 153
Michael Nadler
13 The self-organizing city: an analysis of the institutionalization of
organic urban development in the Netherlands 169
Edwin Buitelaar, Erwin Grommen, and Erwin van der Krabben
PART IV
Finance and investment for real estate development 183
14 A historical evolutionary and cyclical perspective on models of
development finance 185
Colin Jones
15 The future of finance and investment for real estate development and
investment: changing approach for a new structural era 196
Christopher B. Leinberger
16 Mechanisms for financing affordable housing development 207
Graham Squires
vi
Contents
17 The value investment approach to real estate development: a case study
from Berlin, Germany 218
Stephan Bone-Winkel and Karim Rochdi
PART V
Environment and sustainability in real estate development 233
18 Sustainable transformation in real estate developments through conversions 235
Hilde Remøy and Sara Wilkinson
19 Sustainability of office buildings: lessons learned from academic and
professional research 247
Sofia Dermisi
20 Post-disaster recovery for real estate development: an analysis of
multi-family investment from the perspective of a low income
housing tax credit (LIHTC) project 260
Elaine Worzala and V. Lynn Hammett
21 Drivers and opportunities of sustainability in real estate development 274
Sven Bienert and Rogerio Santovito
22 The foundations of sustainability in real estate markets 294
Richard Reed
PART VI
Design in real estate development 311
23 Actor perceptions of good design for real estate development 313
Peter Hendee Brown
24 Good design for real estate development: moving beyond the generic city 327
Alex Duval
25 The design of real estate: a framework for value creation 338
Bing Wang
PART VII
Land use policy and governance of real estate development 353
26 Developing vibrant centers: the public–private development perspective 355
Emil Malizia
vii
Contents
27 The challenges for effective governance of real estate development
in a future urban world 370
Kathy Pain
28 Local politics, planning, land use controls, and real estate development 385
John McDonald
29 Trends in land use and government policy affecting real estate
development in the USA 396
David Hamilton and Richard Peiser
Index 410
viii
Figures
2.1 MTR system map (before the merger) 15
2.2 Ratio of fares to operating costs of public transit 16
2.3 Contribution of railway and property to MTRC’s operating profits 17
2.4 Institutional models for integrating railway and property development 20
2.5 Comparison of conceptual master plans for Tung Chung New Town
Development: Government’s initial master plan 22
2.6 Comparison of conceptual master plans for Tung Chung New Town
Development: MTRC’s revised master plan 23
2.7 Comparison of conceptual master plans for Tung Chung New Town
Development: Housing development based on MTRC’s master plan 23
2.8 High-rise, high-density property development which may have a “walled” effect 26
3.1 A redeveloped single-family house adjacent to an original house in suburban
Chicago, Illinois 29
3.2 Graph of redeveloped single-family residential parcels, 2000–2014 31
3.3 Map of the percentage of single-family detached houses redeveloped per
census place 35
3.4 Map of the percentage of single-family houses redeveloped per census block
group 36
3.5 Map of statistically significant spatial clusters of redeveloped single-family houses 37
3.6 Map of the ratio of the new to original house floor area per census block group 39
4.1 Impact model of how flagship architectural projects “work” 47
5.1 Global transaction volume 61
5.2 Global capital and rent indices 61
5.3 US CRE loan underwriting 63
5.4 Alternative investments have grown twice as fast as traditional investments
since 2005 63
5.5 Top 10 fund managers worldwide by AUM as of December 31, 2014 64
5.6 Client base of CRE managers 65
5.7 Development site sales in the UK 66
6.1 Evolution of African land policies and markets 72
7.1 Rent determination in property markets 82
7.2 Asset market, construction 83
7.3 Cost per house in euros 85
7.4 Construction costs database: detail of prices and benefits. (a) Final selling price,
(b) price–average costs difference 86
8.1 Estimating the trade area boundary with a competing center 98
ix