The driving factors to rental depreciation of purpose built office (PBO) buildings: A PLS-SEM approach

Wan Norhishamuddin Wan Rodi, Adi Irfan Che Ani, Norngainy Mohd Tawil, Kien Hwa Ting, Fatin Aziz

Research output: Contribution to journalArticle

Abstract

Purpose: The rising awareness of the significance of protecting the environment and reducing the carbon footprints of buildings has led to the development of sustainable or green office buildings that are believed to be more energy-efficient and environmentally friendly. Despite this, not many have studied the extent of impacts between green classification and rental depreciation in Malaysia, besides the other traditional causes. Therefore, the primary purpose of this study is to identify the relationship of building characteristics and location factors, namely, green building classifications (BCLs), location and site (LOT), building engineering and services (BES) and building appearance and design (BAD) that contribute to rental depreciation in the Golden Triangle Area of Kuala Lumpur. Design/methodology/approach: A survey using a questionnaire was used in the data collection targeting the selected Kuala Lumpur commercial purpose built office building property managers. To establish the significance and relevance of the model, this study employed the PLS algorithm and bootstrapping procedures. Findings: This research suggests that there were significant impacts of LOT, BAD, and BES towards rental depreciation. On the contrary, sustainable classifications were found insignificant towards rental depreciation. Originality/value: The novelty of this study is that it proposes the sustainable classifications as one of the components in analysing the commercial property depreciation.

Original languageEnglish
JournalJournal of Facilities Management
DOIs
Publication statusAccepted/In press - 1 Jan 2018

Fingerprint

Depreciation
Office buildings
Scanning electron microscopy
Carbon footprint
Managers
Factors

Keywords

  • Certification
  • Depreciation
  • Investment
  • Partial least square structural equation modelling
  • Purpose built office
  • Rental value

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management of Technology and Innovation

Cite this

The driving factors to rental depreciation of purpose built office (PBO) buildings : A PLS-SEM approach. / Wan Rodi, Wan Norhishamuddin; Che Ani, Adi Irfan; Mohd Tawil, Norngainy; Ting, Kien Hwa; Aziz, Fatin.

In: Journal of Facilities Management, 01.01.2018.

Research output: Contribution to journalArticle

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