Pricing short leases and break clauses using simulation methodology

This paper examines the changes in the length of commercial property leases over the last decade and presents an analysis of the consequent investment and occupational pricing implications for commercial property investmentsIt is argued that the pricing implications of a short lease to an investor are contingent upon the expected costs of the letting termination to the investor, the probability that the letting will be terminated and the volatility of rental values.The paper examines the key factors influencing these variables and presents a framework for incorporating their effects into pricing models.Approaches to their valuation derived from option pricing are critically assessed. It is argued that such models also tend to neglect the price effects of specific risk factors such as tenant circumstances and the terms of break clause. Specific risk factors have a significant bearing on the probability of letting termination and on the level of the resultant financial losses. The merits of a simulation methododology are examined for rental and capital valuations of short leases and properties with break clauses.It is concluded that in addition to the rigour of its internal logic, the success of any methodology is predicated upon the accuracy of the inputs.The lack of reliable data on patterns in, and incidence of, lease termination and the lack of reliable time series of historic property performance limit the efficacy of financial models.

The impact of North Atlantic sea surface temperature errors on the simulation of North Atlantic European region climate

Current state-of-the-art climate models fail to capture accurately the path of the Gulf Stream and North Atlantic Current. This leads to a warm bias near the North American coast, where the modelled Gulf Stream separates from the coast further north, and a cold anomaly to the east of the Grand Banks of Newfoundland, where the North Atlantic Current remains too zonal in this region. Using an atmosphere-only model forced with the sea surface temperature (SST) biases in the North Atlantic, we consider the impact they have on the mean state and the variability in the North Atlantic European region in winter. Our results show that the SST errors produce a mean sea-level pressure response that is similar in magnitude and pattern to the atmospheric circulation errors in the coupled climate model. The work also suggests that errors in the coupled model storm tracks and North Atlantic Oscillation, compared to reanalysis data, can also be explained partly by these SST errors. Our results suggest that both the error in the Gulf Stream separation location and the path of the North Atlantic Current around the Grand Banks play important roles in affecting the atmospheric circulation. Reducing these coupled model errors could improve significantly the representation of the large-scale atmospheric circulation of the North Atlantic and European region.

Simulation models in farming systems research : potential and challenges

Integrated simulation models can be useful tools in farming system research. This chapter reviews three commonly used approaches, i.e. linear programming, system dynamics and agent-based models. Applications of each approach are presented and strengths and drawbacks discussed. We argue that, despite some challenges, mainly related to the integration of different approaches, model validation and the representation of human agents, integrated simulation models contribute important insights to the analysis of farming systems. They help unravelling the complex and dynamic interactions and feedbacks among bio-physical, socio-economic, and institutional components across scales and levels in farming systems. In addition, they can provide a platform for integrative research, and can support transdisciplinary research by functioning as learning platforms in participatory processes.

Reconstruction of gusty wind speed time series from autonomous data logger records

The collection of wind speed time series by means of digital data loggers occurs in many domains, including civil engineering, environmental sciences and wind turbine technology. Since averaging intervals are often significantly larger than typical system time scales, the information lost has to be recovered in order to reconstruct the true dynamics of the system. In the present work we present a simple algorithm capable of generating a real-time wind speed time series from data logger records containing the average, maximum, and minimum values of the wind speed in a fixed interval, as well as the standard deviation. The signal is generated from a generalized random Fourier series. The spectrum can be matched to any desired theoretical or measured frequency distribution. Extreme values are specified through a postprocessing step based on the concept of constrained simulation. Applications of the algorithm to 10-min wind speed records logged at a test site at 60 m height above the ground show that the recorded 10-min values can be reproduced by the simulated time series to a high degree of accuracy.

Urban microclimates and simulation

This chapter examines the workings of urban microclimates and looks at the associated causes and effects of the urban heat island (UHI). It also clarifies the relationship between urban form and the key climatic parameters (sun, daylight, wind, temperature). A particular section is devoted to the concepts of UHI intensity and sky view factor (SVF); these are useful indicators for researchers in this area. The challenge of how to model urban microclimates is covered, featuring the six archetypal urban forms familiar to analysts involved in using simulation software. The latter sections address the issue of urban thermal comfort, the importance of urban ventilation and finally what mitigating strategies can be implemented to curb negative UHI effects.

Building simulation

This chapter aims to provide an overview of building simulation in a theoretical and practical context. The following sections demonstrate the importance of simulation programs at a time when society is shifting towards a low carbon future and the practice of sustainable design becomes mandatory. The initial sections acquaint the reader with basic terminology and comment on the capabilities and categories of simulation tools before discussing the historical development of programs. The main body of the chapter considers the primary benefits and users of simulation programs, looks at the role of simulation in the construction process and examines the validity and interpretation of simulation results. The latter half of the chapter looks at program selection and discusses software capability, product characteristics, input data and output formats. The inclusion of a case study demonstrates the simulation procedure and key concepts. Finally, the chapter closes with a sight into the future, commenting on the development of simulation capability, user interfaces and how simulation will continue to empower building professionals as society faces new challenges in a rapidly changing landscape.

The Aqua-Planet Experiment (APE): CONTROL SST Simulation

Climate simulations by 16 atmospheric general circulation models (AGCMs) are compared on an aqua-planet, a water-covered Earth with prescribed sea surface temperature varying only in latitude. The idealised configuration is designed to expose differences in the circulation simulated by different models. Basic features of the aqua-planet climate are characterised by comparison with Earth. The models display a wide range of behaviour. The balanced component of the tropospheric mean flow, and mid-latitude eddy covariances subject to budget constraints, vary relatively little among the models. In contrast, differences in damping in the dynamical core strongly influence transient eddy amplitudes. Historical uncertainty in modelled lower stratospheric temperatures persists in APE. Aspects of the circulation generated more directly by interactions between the resolved fluid dynamics and parameterized moist processes vary greatly. The tropical Hadley circulation forms either a single or double inter-tropical convergence zone (ITCZ) at the equator, with large variations in mean precipitation. The equatorial wave spectrum shows a wide range of precipitation intensity and propagation characteristics. Kelvin mode-like eastward propagation with remarkably constant phase speed dominates in most models. Westward propagation, less dispersive than the equatorial Rossby modes, dominates in a few models or occurs within an eastward propagating envelope in others. The mean structure of the ITCZ is related to precipitation variability, consistent with previous studies. The aqua-planet global energy balance is unknown but the models produce a surprisingly large range of top of atmosphere global net flux, dominated by differences in shortwave reflection by clouds. A number of newly developed models, not optimised for Earth climate, contribute to this. Possible reasons for differences in the optimised models are discussed. The aqua-planet configuration is intended as one component of an experimental hierarchy used to evaluate AGCMs. This comparison does suggest that the range of model behaviour could be better understood and reduced in conjunction with Earth climate simulations. Controlled experimentation is required to explore individual model behaviour and investigate convergence of the aqua-planet climate with increasing resolution.

Numerical simulation of tephra transport and deposition of the 1982 El Chichón eruption and implications for hazard assessment

El Chichón volcano, Chiapas, Mexico, erupted explosively on March 29th, 1982, after a repose period of about 550 years. Amongst ten eruptive episodes documented between March 29th and April 4th, only the three that occurred on March 29th and April 4th produced significant pyroclastic tephra deposits. Here we use analytical (HAZMAP) and numerical (FALL3D) tephra transport models to reconstruct the deposits and the atmospheric plume dispersal associated with the three main fallout units of the 1982 eruption. On the basis of such a reconstruction, we produce hazard maps of tephra fallout associated to a Plinian eruption and discuss the implications of such a severe eruption scenario.

Occurrence of Poecilochirus austroasiaticus (Acari: Parasitidae) in forensic autopsies and its application on postmortem interval estimation

Despite the fact that mites were used at the dawn of forensic entomology to elucidate the postmortem interval, their use in current cases remains quite low for procedural reasons such as inadequate taxonomic knowledge. A special interest is focused on the phoretic stages of some mite species, because the phoront-host specificity allows us to deduce in many occasions the presence of the carrier (usually Diptera or Coleoptera) although it has not been seen in the sampling performed in situ or in the autopsy room. In this article, we describe two cases where Poecilochirus austroasiaticus Vitzthum (Acari: Parasitidae) was sampled in the autopsy room. In the first case, we could sample the host, Thanatophilus ruficornis (Küster) (Coleoptera: Silphidae), which was still carrying phoretic stages of the mite on the body. That attachment allowed, by observing starvation/feeding periods as a function of the digestive tract filling, the establishment of chronological cycles of phoretic behavior, showing maximum peaks of phoronts during arrival and departure from the corpse and the lowest values in the phase of host feeding. From the sarcosaprophagous fauna, we were able to determine in this case a minimum postmortem interval of 10 days. In the second case, we found no Silphidae at the place where the corpse was found or at the autopsy, but a postmortem interval of 13 days could be established by the high specificity of this interspecific relationship and the departure from the corpse of this family of Coleoptera.

Simulation of a domestic ground source heat pump system using a three-dimensional numerical borehole heat exchanger model

Common approaches to the simulation of borehole heat exchangers (BHEs) assume heat transfer in circulating fluid and grout to be in a quasi-steady state and ignore fluctuations in fluid temperature due to transport of the fluid around the loop. However, in domestic ground source heat pump (GSHP) systems, the heat pump and circulating pumps switch on and off during a given hour; therefore, the effect of the thermal mass of the circulating fluid and the dynamics of fluid transport through the loop has important implications for system design. This may also be important in commercial systems that are used intermittently. This article presents transient simulation of a domestic GSHP system with a single BHE using a dynamic three-dimensional (3D) numerical BHE model. The results show that delayed response associated with the transit of fluid along the pipe loop is of some significance in moderating swings in temperature during heat pump operation. In addition, when 3D effects are considered, a lower heat transfer rate is predicted during steady operations. These effects could be important when considering heat exchanger design and system control. The results will be used to develop refined two-dimensional models.

Raytracing simulation for predicting light pipe transmittance

Daylighting systems can offer energy savings primarily by reducing electric lighting usage. Accurate predictive models of daylighting system performances are crucial for effective design and implementation of this renewable energy technology. A comparative study of predictive methods was performed and the use of a commercial raytracing software program was validated as a method of predicting light pipe performance. Raytracing simulation was shown to more accurately predict transmission effi ciency than existing analytical methods.

Simulation of the future performance of low-energy evaporative cooling systems using UKCP09 climate projections

Recent activity in the development of future weather data for building performance simulation follows recognition of the limitations of traditional methods, which have been based on a stationary (observed) climate. In the UK, such developments have followed on from the availability of regional climate models as delivered in UKCIP02 and recently the probabilistic projections released under UKCP09. One major area of concern is the future performance and adaptability of buildings which employ exclusively passive or low-energy cooling systems. One such method which can be employed in an integral or retrofit situation is direct or indirect evaporative cooling. The effectiveness of evaporative cooling is most strongly influenced by the wet-bulb depression of the ambient air, hence is generally regarded as most suited to hot, dry climates. However, this technology has been shown to be effective in the UK, primarily in mixed-mode buildings or as a retrofit to industrial/commercial applications. Climate projections for the UK generally indicate an increase in the summer wet-bulb depression, suggesting an enhanced potential for the application of evaporative cooling. The paper illustrates this potential by an analysis of the probabilistic scenarios released under UKCP09, together with a detailed building/plant simulation of case study building located in the South-East of England. The results indicate a high probability that evaporative cooling will still be a viable low-energy technique in the 2050s.