Week 6 Flashcards
(30 cards)
What type of quadrants are there
- User market, 2. Investment market, 3. Construction market, 4. stock adjustment market
What is the four quadrant model for?
To explain coherence between the market for real estate space and real estate assets
In a user market what wil happen?
Rent will increase, property price will increase, construction will increase, stock will increase
How can the cap rate be calculated?
Cap rate = current annual net income/ property price
What is cap rate
This is another word for yield (opbrengst)
Cap rate decreases when?
Property price increases, construction increases, stock increases, rent decreases
Of what consist the cost price?
Building costs+land costs+other costs
The building costs are influenced by ?
Interest rate, regulations, land costs, financing
What happens when the cost price increases?
Construction and stock decease, and rents and property price increases
Demand curve has a … slope and supply curve has a … slope
Negative and positive
When does re-development happen?
it should occur at the points at which the site value exceeds the existing property value
What is the problem with re-developing buildings in central city
The buidlings could be very so it is not economicly a good option or it can real to deteriorating (verslechterd) environment
Between who can a developer choose to carry out the building design
An architect and professional team or a contractor
Needed for a good constructed building
Time, performance and costs
Three standard types of contract arrangements
Design-bid-build contract, design and built contract and the managing contracting
What is the design bid built contract
The design phase is completed before the constructor is sought. Typecally used for small - medium sized developments
Who is involved in the DBB contract
Professuinal team who is led by the architect and the project manager
Main resons for delay in DBB contact
Inadequancy and/ or errors in document, Architect makes drawing or instruction mistake, caused by tradesmes directly employwe by developer
Advanteges DBB procurement
Competitive equity and fairness, Design led facilitates high quality design, flexible
Disadvanteges DBB procurement
Strategy is potentially open to abuse which results in less certainty, approach is not fully promoted by all stakeholders, can lead to adversarial relationships between parties
What is the design and build contract
Contractor is responsible for design and construction
When is the D&B contract chosen?
Simple types of building sush as warehouses, Contractors have standard design for type of building, public sector for developing school, hospitals
Advantages of the D&B procurement
Fewer uncertainties in the overall process, developer deal with one construction and inherent buidability is achieved
Disadvantages of D&B procurement
Only limited numver of firms offer this, developer had to commit before detailed design is complete, changes to project scope can be expensive
