Opportunities and challenges for property developer value in a market moving towards shared office environment
Pahikkala, Markus (2020)
2020
Rakennustekniikan DI-ohjelma - Master's Programme in Civil Engineering
Rakennetun ympäristön tiedekunta - Faculty of Built Environment
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Hyväksymispäivämäärä
2020-09-15
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202009146984
https://urn.fi/URN:NBN:fi:tuni-202009146984
Tiivistelmä
Values of sustainable development have made shared economy commonplace and driven construction and real estate industry forward onwards from 2010. Workplace design, employee satisfaction, and productivity are emphasized by the change of knowledge work, thus creating a favorable environment for solutions of shared economy in the office market as well. Heightened office utilization rates combined with the emphasis on autonomy and satisfaction of employees create productivity for companies on many levels. The tenant demand of static office space is changing.
Objective of this master’s thesis is to discover the effects shared economy solutions imply for property development. Research questions ask how will shared economy change the business of property development and how, in the case company context, is a property developer able to produce value with sharing solutions to the most important stakeholders of their value chain, the tenants and the real estate investors.
Research consists of theoretical and empirical studies. Introduced in the theoretical study are, property development and real estate investing processes and value creation, and definitions of office flexibility, office sharing, and cowork spaces. The shared office space value proposition, divided into social and economic value creation, is introduced. Empirical study is built on the theory-based shared office space value proposition canvases. Opportunities and challenges for property developer’s value creation are made concrete in a workshop with the case organization.
The most potential property developer value creation opportunities, divided under three themes, were identified. The complex value system includes many stakeholders and, for the time being, many conflicts in terms of value creation. Based on the property developers most potential value creation opportunities, a future scenario of the value proposition working from all stakeholders’ viewpoint, is arranged. The hypothetical scenario identifies the concrete challenges that currently exist inside the market and what are the needed events to overcome them.
Based on the results, property developers must stay aware of the current market solutions of sharing office space and particularly of tenant organizations’ needs and goals for their own office spaces. A natural integration of any shared office space solution into the property developers own office product will demand large scale co-operation with at least all the stakeholders introduced in this research. The 21’st century office market is based on tenant demand and that tenant demand for shared office solutions is what will define when, how and how largely property developers must begin offering these solutions as an integral part of their offering.
Objective of this master’s thesis is to discover the effects shared economy solutions imply for property development. Research questions ask how will shared economy change the business of property development and how, in the case company context, is a property developer able to produce value with sharing solutions to the most important stakeholders of their value chain, the tenants and the real estate investors.
Research consists of theoretical and empirical studies. Introduced in the theoretical study are, property development and real estate investing processes and value creation, and definitions of office flexibility, office sharing, and cowork spaces. The shared office space value proposition, divided into social and economic value creation, is introduced. Empirical study is built on the theory-based shared office space value proposition canvases. Opportunities and challenges for property developer’s value creation are made concrete in a workshop with the case organization.
The most potential property developer value creation opportunities, divided under three themes, were identified. The complex value system includes many stakeholders and, for the time being, many conflicts in terms of value creation. Based on the property developers most potential value creation opportunities, a future scenario of the value proposition working from all stakeholders’ viewpoint, is arranged. The hypothetical scenario identifies the concrete challenges that currently exist inside the market and what are the needed events to overcome them.
Based on the results, property developers must stay aware of the current market solutions of sharing office space and particularly of tenant organizations’ needs and goals for their own office spaces. A natural integration of any shared office space solution into the property developers own office product will demand large scale co-operation with at least all the stakeholders introduced in this research. The 21’st century office market is based on tenant demand and that tenant demand for shared office solutions is what will define when, how and how largely property developers must begin offering these solutions as an integral part of their offering.