Commercial Property Development in Peripheral Areas of Cities: the Inherent Risk
||Akinbogun, Solomon Pelumi; Tunbosun Oyedokun
||Commercial Property Development in Peripheral Areas of Cities: the Inherent Risk
||21st Annual European Real Estate Society Conference in Bucharest, Romania
||Commercial properties are mostly in high demand in cities; the demand becomes more profound in cities that serve as administrative headquarters of a region, state and country. Without doubt, commercial properties normally command higher rental value per square meter than many other uses. This explains the reason behind the conversion of most residential properties at the Central business districts to commercial properties. Therefore, Real estate investors tend to invests in this investment vehicle in various locations for optimum returns. However, the breakthroughs in information superhighways and the increasing adoption of ICT seem to have undermined the performance of commercial properties given the resultant flexibility associated with change in business and commercial operations. This paper seeks to examine the unique characteristics of high rise commercial properties in capital cities where demand for office spaces is at the peak. It takes a global view of the issue by considering a European and an African capital city namely Edinburgh and Akure to examine the inherent risk in such property. Based on the findings, the paper would provide useful advice for commitment of capital for the development of office property in city periphery.
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||G : Market Research, Analysis & Forecasting
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