Quality and Property Performance

Abstract

Quality and profit are often considered to be connected. The property market is one in which the concept often arises. For example, the definition of prime property is a quality judgement. In property development, the production of high‐quality property may be thought to improve returns, or to reduce risk. Considers the question whether (and if so, how) quality in property development (excluding site factors) is likely to lead to high returns. Recently published work defines quality as resistance to depreciation, where depreciation is defined in purely financial (return) terms. Fully considers this work, which concentrates on offices and industrials. Extends this work, describing new research which considers the application of the relevant concepts and quality definitions to shopping centres. Quality and cost are also considered to be connected. In property development, high construction costs may be expected to produce quality. This produces a complex subsidiary question concerning this relationship, which is also addressed here.