Refurbishment vs redevelopment

Refurbishment vs re disciplineChapter 1 Refurbishment vs overhaulMalaysia attribute market has experienced a drastic change in 2008. The stead market moved from a boom at the end of 2007 to uncertainties collectible to increasing construction address. Finally, the space market moved into a comparatively quiet market towards the end of 2008. With all the banks trying to tighten their contribute terms, obtaining loans for development of all types of commercial grammatical construction have been difficult in the last threesome years.Yet, study shows that there is still a high gear demand for position in use structure in field of operation like Kuala Lumpur. From time to time, there be several developments of natural might twists in Klang Valley bea. From the study done by JPPH, there is an adjoin of approximately 10 million squ atomic number 18 metres of new office infinite through turn up Kuala Lumpur. Yet, the average va whoremastercy rate in office space decreased to 18.6%. This proved that the demand for office mental synthesis is still fitting to cater the increase in new office space. Study too showed that there is a new supply of approximately 280,000 square metres of new office space and additional 92,000 square metres of office being refurbished and repositioned in the year of 2009. So, construction owners have to struggle to of importtain the popularity and the competitiveness of their building. The accredited lack of new-build development raises the likelihood of grade-A supply shortages when the occupier market returns, creating investment funds opportunities for carefully targeted refurbishment. tho, usually owner is in great dilemma when they are in much(prenominal) situation. As everyone know, the refurbishment of office space offers advantages over new-build which can facilitate the achievement of economic, social and environmental sustainability. But, redevelopment is the eventual(prenominal) stem for eliminating all p roblems regarding the maintenance, changing tenants requirement and other probems.Making comparisons in the midst of refurbishment and redevelopment is likewise problematic because the term refurbishment can be used to encompass a wide spectrum of building works, from forgivable cosmetic improvements through to extensive reconstruction. But, in the majority of cases, refurbishment go forth be a quicker and cheaper means of restoring second-hand office space to grade-A specification. As a low-cost option, the refurbishment of office space should be intuitively attractive in an economic climate marked by a lack of development finance. But in many cases refurbishment is as costly as redevelopment and likely to carry with it greater risks and strong-arm constraints.Problem statementMalaysian has been accused as a given(p) builder but poor manager. For example, certain office buildings in luxurious Triangle are often looked deteriorated and relatively matured compared to other purp osed-built office building. Example of such older office buildings are those office building located on the fringe of Central Business District, like Jalan Ampang. These older office buildings have a higher tendency to be go forth vacant due to its poor office building images. This forget leads to discredit rental rate to be paid by the tenants to remain its competitiveness. new(prenominal) important characteristic of such office building as well includes by low occupancy rate, lower quality of the building and services provided.Besides, late office developments are very likely to adopt green features such as energy saving, reduction of wastage and water usage, as well as the use of environmentally friendly materials. This new trend in development had forced many owners evaluate the qualify of their building and try to guard several changes to the buildings to attracts more tenants. These efforts are important to attract corporations who fascinate energy-saving and environ mental-friendly building.But making such decision is not easy. The owners have to evaluate the cost and benefit of each choice, and determine the solution he desires to improve the condition of his buildings. But other factors also have to take into consideration. For example, the rate of sideline the bank would charge for development of different risk, the time of completion and others also greatly affect the decision-making of ownerObjectives of studyThis study has three main objectives. There areTo determine factors influencing the decision-making in deriving a solution to the method chosen.To identify the benefits of building refurbishment or redevelopment to the building users.To determine whether tenant likes refurbished lowly office building or impudently redeveloped building.Scope of studyThe scope of this study will focus on selected office buildings, both building which had undergo refurbishment and those which had undergone redevelopment. To ensure a more complete stud y, the newly constructed building is also considered as building undergone redevelopment.The respondents of the questionnaire are limited to tenants in prosperous Triangle area only. As for the topographic point manager, all property managers can be chosen as the interviewee. Building manager who are hired by owners and acted on behalf of them, will gives their opinions in owner perspectives (maximise profit) and current tenants will voice out their preferences in choosing a building space.MethodologyAll the relevant entropy are collected through primary selective information and secondary data.Primary data includes questionnaire, samplings, interviews and case study. In this study, respondents identified in questionnaire study are selected property manager who represents building owners point of view and some tenants within Golden Triangle area through sampling. As for interview session, interviewees targeted are property manager who are the representatives of building owners. T hrough this interview sessions, benefit of building refurbishment and redevelopment will be ascertained. Finally, case study of three similar office buildings will also be done as the quantitative analysis. All three building will be compared check to the cost incurred for construction and the benefit obtained. Then the differences in term of occupancy rates, rental and others will be calculated to represent the increment in term of market value.On the other hand, collection of data in this study will also includes references such as reference book, journal, members, crowd paper, property market reports, internet/ website searching and other sources.In addition, data will also be collected from books, magazines or newspaper article to obtain general information on building refurbishment and the effect of building refurbishment.Further details of methodology will be discussed in Chapter 3.Structure of StudyThis study consisted of five chapters. The design discussion of each chap ter is discussed as followsChapter 1Chapter 1 is the introduction of the study. This chapter starts with an introduction of this study with a brief background. Besides, other things like problem statement, scope of study, methodology and others are also discussed in this chapter.Chapter 2Chapter 2 is about the literature review. In this chapter, definition of building refurbishment and redevelopment, benefit of building refurbishment and redevelopment and others will be discussed in this chapter. Besides, factor influencing decision making of building refurbishment and the tenant preferences will also be discussed.Chapter 3Chapter 3 is the methodology. In this chapter, methodology used to survey and interview in align to gather information needed. The structure of questionnaire is also discussed in this chapter. Furthermore, a brief discussion on the opinion of respondents of questionnaire and interviews will also be carried out in the last part of this chapter.Chapter 4Chapter 4 i s the chapter regarding research findings analysis. In this chapter, data gather will be analysed and presented in this chapter. An analysis on the benefit of building refurbishment and its value-enhancing ability will also be carried out by studying the information gathered through interviews, questionnaire survey, and secondary data.Chapter 5Chapter 5 discuss about the evidence and recommendation. In this chapter, conclusion from the findings and analysis of data in the previous chapter will be discussed and summarized. Besides, it also illustrate on the confirmation of the objectives and overall summary for the whole study. early(a) information included in this chapter is the suggestions for further study.