OMQV – Objectivized Market Quality Value a Market-Based Methodology To Assess the Quality of Office Buildings

34 Pages Posted: 27 Sep 2021

See all articles by Paul Andriot

Paul Andriot

Université Paris Dauphine

Fabrice Larceneux

Université Paris Dauphine

Arnaud Simon

Université Paris Dauphine - Centre de Recherches sur la Gestion (CEREG)

Date Written: August 27, 2021

Abstract

Urban managers intervene to organize and plan territorial real estate. However, in reality the quality of existing real estate remains partly unknown. It is deduced from financial estimates made by certain experts, but the literature shows such metrics to be incomplete and biased. This article draws on the theory of perceived quality to propose an objectivized, general and granular, metric of quality, integrating both the strategic aspects of quality attributes and the operational aspects of quality cues. The relative importance of each dimension was determined by surveys among stakeholders (705 professionals). The quality score thus allows a true strategic assessment of a real estate inventory. Applied to 107 buildings in the Paris region, this metric proved reliable and consistent in time and space. It was also well-aligned with financial valuations. By identifying the real components of value, it is of greater relevance to stakeholders and allows more efficient resource allocation.

Keywords: Perceived quality, urban planning, real estate, valuation, stakeholders

Suggested Citation

Andriot, Paul and Larceneux, Fabrice and Simon, Arnaud, OMQV – Objectivized Market Quality Value a Market-Based Methodology To Assess the Quality of Office Buildings (August 27, 2021). Université Paris-Dauphine Research Paper No. 3912736, Available at SSRN: https://ssrn.com/abstract=3912736 or http://dx.doi.org/10.2139/ssrn.3912736

Paul Andriot (Contact Author)

Université Paris Dauphine ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775
France

Fabrice Larceneux

Université Paris Dauphine ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775
France

Arnaud Simon

Université Paris Dauphine - Centre de Recherches sur la Gestion (CEREG) ( email )

Paris Dauphine University
Place de Lattre de Tassigny
Paris, 75775
France

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