Real Estate & the New Economy: The Impact of Information and Communications Technology

Private sector commercial property represents some #400 bn, or 34% of total UK business assets and is a vital fabric for housing commercial enterprise. Yet social and economic forces for change, linked with new technology, are making owners and occupiers question the very nature and purpose of property and real estate.

The impact of information and communications technology on commercial real estate in the new economy

Purpose – This paper seeks to critically review the conceptual frameworks that have been developed for assessing the impact of information and communications technology (ICT) on real estate. Design/methodology/approach – The research is based on a critical review of existing literature and draws from examples of previous empirical research in the field. Findings – The paper suggests that a “socio-technical framework” is more appropriate to examine ICT impact in real estate than other “deterministic” frameworks. Therefore, ICT is an important part of the new economy, but must be seen in the context of a number of other social and economic factors. Research limitations/implications – The research is based on a qualitative assessment of existing frameworks, and by using examples from commercial real estate, assesses the extent to which a “socio-technical” framework can aid understanding of ICT impact. Practical implications – The paper is important in highlighting a number of the main issues in conceptualising ICT impact in real estate and also critically examines the emergence of a new economy in the information society within the general context of real estate. The paper also highlights research gaps in the field. Originality/value – The paper deconstructs the myths of the “death of real estate” and “productivity increase means jobs loss”, in relation to office real estate. Finally, it examines some of the ways in which ICT is impacting on real estate and suggests the most important components for a future research agenda in the field of ICT and real estate impact, and will be of value to property investors, facilities managers, developers, financiers, and others.

Place attachment and sense of belonging in the offices

Examines the concept of “place attachment” as defined in various disciplines and develops an effective conceptual approach that can be applied to facilities management. Describes the development of a model-matchmaking process adapted from Passini's model of cognitive mapping. Findings that the emergence of the new economy is undermining our ability to form attachments with people, places and companies. However, one of the unintended effects of this is that it has strengthened the value of place and aroused a longing for community. Moreover, loyalty to an organisation is increasingly determined by social and place attachment. Proposes that further research needs to be undertaken to “engineer out” the negative impacts of flexibility associated with loss of place. States that place attachment presents a challenging view of the world that is contrary to all the received wisdom in facilities management, where flexibility has always assumed an unchallenged position in relation to buildings and people. Concludes that this research area presents many pragmatic design and operational questions for facilities managers.

Globalization and technology-mediated distance education: developing countries’ perspective

The contemporary global economy places great value on highly educated workers but devalues workers in repetitive or low skill jobs. In order to thrive in this new economy, countries must ensure sufficient higher education opportunities for their population. However, a lack of resources is a major barrier faced by many developing countries in expanding their higher education systems. Technology-mediated distance education has the potential to be an invaluable tool in offering educational opportunities to people, if the other necessary conditions for participation are met. Although technology-mediated education was first considered to be a medium to bridge the learning divide across space, today it is feared that it could well become an inequality intensifier. Drawing on examples from developing countries, this paper considers factors regarding implementing technology-mediated distance education, including failure to address contextual issues and possible consequences. Challenges and policy implications are also discussed.

Growth of entrepreneurial software firms in cities

Despite the prediction of the demise of cities with the advance of new information and communication technologies in the New Economy, the software industry has emerged from cities in the USA, Europe and Asia in the past two decades. This article explores the reasons why cities are centers of software clusters, with reference to Boston, London and Dublin. It is suggested that cities' roles as centres of knowledge flows and creativity are the key determinants of their competitiveness in the knowledge-intensive software industry.

The small open-economy New Keynesian Phillips Curve: empirical evidence and implied inflation dynamics

In this paper we apply GMM estimation to assess the relevance of domestic versus external determinants of CPI inflation dynamics in a sample of OECD countries typically classified as open economies. The analysis is based on a variant of the small open-economy New Keynesian Phillips Curve derived in Galí and Monacelli (Rev Econ Stud 72:707–734, 2005), where the novel feature is that expectations about fluctuations in the terms of trade enter explicitly. For most countries in our sample the expected relative change in the terms of trade emerges as the more relevant inflation driver than the contemporaneous domestic output gap.

Private investment in the countryside: an assessment of the role of new houses and estates in sustaining the rural economy and environment

The British countryside has been shaped and sustained over the years by the establishment of landed estates. Some of our best known, and now most protected, landmarks derive from this tradition by which money, that was often sourced from outside the rural economy, was invested in land. Whilst there was some reversal in this trend during the last century, there is again a widespread desire among people of means to invest in new country property. Paragraph 3.21 of Planning Policy Guidance Note 7: The Countryside - Environmental Quality and Economic and Social Development was introduced in 1997 as a means of perpetuating the historic tradition of innovation in the countryside through the construction of fine individual houses in landscaped grounds. That it was considered necessary to use a special provision of this kind reflects the prevailing presumption of planning authorities against allowing private residential development in open countryside. The Government is currently reviewing rural planning policy and is focusing on higher density housing, affordable homes and the use of brownfield sites. There is an underlying conception that individual private house developments contribute nothing and are seen as the least attractive option for most development sites. The purpose of paragraph 3.21 lies outside the government’s priorities and its particular provisions may therefore be excluded in forthcoming ‘policy statements’. This paper seeks to examine the role of private investors wishing to build new houses in the countryside, and the impact that that might have on local economies. It explores the interpretation placed on PPG7 through an investigation of appeal sites, and concludes by making recommendations for the review process, including the retention of some form of exceptions policy for new build houses.

Sustaining linguistic diversity within the global cultural economy: issues of language rights and linguistic possibilities

This paper draws on ethnographic case-study research conducted amongst a group of first and second generation immigrant children in six inner-city schools in London. It focuses on language attitudes and language choice in relation to cultural maintenance, on the one hand, and career aspirations on the other. It seeks to provide insight into some of the experiences and dilemmatic choices encountered and negotiations engaged in by transmigratory groups, how they define cultural capital, and the processes through which new meanings are shaped as part of the process of defining a space within the host society. Underlying this discussion is the assumption that alternative cultural spaces in which multiple identities and possibilities can be articulated already exist in the rich texture of everyday life amongst transmigratory groups. The argument that whilst the acquisition of 'world languages' is a key variable in accumulating cultural capital, the maintenance of linguistic diversity retains potent symbolic power in sustaining cohesive identities is a recurring theme.

Contested and contesting identities: minority languages vs. the teaching of 'world' languages within the global cultural economy

This paper juxtaposes postmodernist discourses on language, identity and cultural power with historical forms of language inequalities grounded in the nation-state. The discussion is presented in three sections. The first section focuses on the mixed legacies of language-state relations within the pluralist nation-state, colonial and postcolonial language policies. The second section examines the concept of linguistic minority rights beyond the nation-state. This incorporates discussion of transmigration, the breaking up of previous power blocs in Eastern Europe and the role of language in the articulation of emergent 'ethnic' nationalisms. The third section examines the concept of multilingualism within the interactive cultural landscape defined by 'informationalism'. Discussing the collective impact of these variables on the shaping of new cultural, economic and political inequalities, the paper highlights the tensions in which the concept of linguistic minority rights exists in the world today.