Purpose

Relying on a unique proprietary Polish office market space database, the paper attempts to quantify the impact of buildings' age on the financial performance of real estate assets.

Design/methodology/approach

Panel econometric modeling was utilized to disentangle the impact of buildings' functional obsolescence and technical deterioration on their long-term financial performance.

Findings

In line with casual empiricism, our findings show a negative associative link between properties' age and potential lease revenue. The concomitant stickiness of service charges presages a possible long-term deterioration of financial outcomes of real estate investments. While older buildings generally have higher occupancy rates, the absorption rates are found to be negatively affected by the properties' age. On the bright side, the elasticity of vacancy rate with respect to rental rates is found to decrease as buildings get older. Further, the rent differential is confirmed to be more pronounced in higher age properties hinting at an existing potential for price discrimination, which may at least partially compensate for stagnant rents.

Originality/value

Our empirical results confirm the properties' age to be a statistically significant factor in shaping the long-term performance of real estate assets, which should be better accounted for in financial projections for real estate developments.

中文翻译：

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量化建筑物老化的财务后果：分析来自波兰办公空间市场的面板建筑物级别的数据

目的

依靠独特的专有波兰办公市场空间数据库，本文试图量化建筑物使用年限对房地产资产财务绩效的影响。

设计/方法/方法

利用面板计量经济学模型来消除建筑物功能过时和技术恶化对其长期财务绩效的影响。

发现

与偶然经验主义相一致，我们的研究结果表明，房地产年龄与潜在租赁收入之间存在负相关关系。服务费用的随之而来的粘性预示着房地产投资的财务结果可能会长期恶化。虽然较老的建筑物通常具有较高的占用率，但发现吸收率受到房屋年龄的负面影响。从好的方面来看，随着房屋的老化，空置率相对于租金的弹性下降。此外，在较高年龄的物业中，租金差异被证实更为明显，暗示了存在价格歧视的可能性，这至少可以部分弥补停滞的租金。

创意/价值

我们的经验结果证实，物业的年龄是影响房地产资产长期表现的统计学上重要的因素，应该在房地产开发的财务预测中更好地说明这些因素。