Critical Review on Economic Effect of Renovation Works for Sustainable Office Building Based on Opinions of Real-Estate Appraisers

Abstract

Despite increased renovation work for office buildings to improve energy performance, studies on the appraisal of renovated office buildings (ROB) are scarce. Thus, this study analyzed the perceptions of appraisers regarding renovation work and the effect of renovation work on the economic value of office buildings. Following a reliability evaluation, research results were derived using various methodologies, such as descriptive statistics, Chi-square analysis, analytic hierarchical process, and structural equation modeling, based on the survey results of 118 appraisers. The renovation work was found to positively increase an office building’s value, although the existing appraisal methods have low applicability considering the appraisal of ROB. On evaluating the importance of each factor considered in the ROB appraisal process, the factors related to the “location” of ROB were deemed more important than the attributes directly changed as a result of renovation work. Moreover, factors whose attributes were changed (e.g., working environment, green space, lease area, gross area of floors, number of floors, and number of parking spaces) were found to be critical factors affecting ROB value. The results of this study are expected to provide improvement directions for ROB appraisal methods and significantly aid building owners.