The overall goal of the project was to provide a tool for improved investment decision making for functional performance of investment property. The evaluation examines both ex post and ex ante building performance within operational and investment contexts and considers the resultant financial, environmental and social impacts.
The objective of this project was to develop a forward-looking property performance evaluation model that was both structurally accurate and easy to use, and incorporate the following features:
- a cashflow-based study assessing the functional performance of investment property assets
- an instructional tool that identifies the key input variables and provides guidance on the selection of the key variables
- the production of outputs in a probabilistic format that identifies the range of uncertainty in the output figures and incorporates an assessment of risk
- the identification of the environmental and social factors that form part of the evaluation process and the establishment of the triple-bottom-line evaluation format.
The end product of the research focussed on delivering the model, in software form, and a user manual in a form suitable for use by the industry partners.
The single most important finding of this study is the future focus on the triple bottom line (TBL) as the standard for performance evaluation. Once the TBL performance is determined, the evaluation process, which has up till now taken a narrow, economic bottom line approach, will be challenged to take on TBL.