Managing Renovation, ESG, and Financial Targets: an analysis on success factor interrelations
Eldershaw, Hailey (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024100926266
https://urn.fi/URN:NBN:fi:amk-2024100926266
Tiivistelmä
To obtain climate neutrality by 2050, the European Commission has laid out a preliminary goal of renovating 35 million building units by 2030. While the decline in the demand for office space in major German cities, coupled with a depletion of the housing stock supply, provides real estate developers with a market opportunity to adaptively reuse these office properties. However, with the current high cost of leverage paired with the increased risk that value-add and opportunistic projects face, there is a lack of incentive.
The objective of this master’s thesis was to reach a justified conclusion on how project management can be used to obtain an ESG approved and financially viable renovation project, as well as identify the success factors and their interrelations with one another. This dissertation attempted to consolidate this understanding into a guiding framework. A deductive research approach and a modified Delphi methodology was used that included a case study within the two interview rounds with industry experts.
The analysis completed in this master’s thesis indicated that the achievement of the success factors alone does not guarantee a successful project, as such the outcome of this dissertation is the identification of the interrelationships between the success factors, through the provision of a framework. This framework abridges the current research, through the advancement of available knowledge towards an understanding of the secondary impacts of the success factors. As such, this graduate thesis provides a platform for the advancement of the understanding of the interrelationships between success factors involved in the management of renovation, ESG, and financial targets and their secondary and sometimes negative impacts on one another.
Further recommended research includes the justification of the interrelationships outside of the limitations of this thesis, as well as the findings that were outside of the thesis scope. The concluding framework can be used as a tool to assist with the real estate development of renovation projects on both a company-wide and project-based scale.
Keywords: renovation, ESG, adaptive reuse, adaptive project management, value-add and opportunistic investing
The objective of this master’s thesis was to reach a justified conclusion on how project management can be used to obtain an ESG approved and financially viable renovation project, as well as identify the success factors and their interrelations with one another. This dissertation attempted to consolidate this understanding into a guiding framework. A deductive research approach and a modified Delphi methodology was used that included a case study within the two interview rounds with industry experts.
The analysis completed in this master’s thesis indicated that the achievement of the success factors alone does not guarantee a successful project, as such the outcome of this dissertation is the identification of the interrelationships between the success factors, through the provision of a framework. This framework abridges the current research, through the advancement of available knowledge towards an understanding of the secondary impacts of the success factors. As such, this graduate thesis provides a platform for the advancement of the understanding of the interrelationships between success factors involved in the management of renovation, ESG, and financial targets and their secondary and sometimes negative impacts on one another.
Further recommended research includes the justification of the interrelationships outside of the limitations of this thesis, as well as the findings that were outside of the thesis scope. The concluding framework can be used as a tool to assist with the real estate development of renovation projects on both a company-wide and project-based scale.
Keywords: renovation, ESG, adaptive reuse, adaptive project management, value-add and opportunistic investing