The production and consumption of commercial real estate market forecasts

Whilst the vast majority of the research on property market forecasting has concentrated on statistical methods of forecasting future rents, this report investigates the process of property market forecast production with particular reference to the level and effect of judgemental intervention in this process. Expectations of future investment performance at the levels of individual asset, sector, region, country and asset class are crucial to stock selection and tactical and strategic asset allocation decisions. Given their centrality to investment performance, we focus on the process by which forecasts of rents and yields are generated and expectations formed. A review of the wider literature on forecasting suggests that there are strong grounds to expect that forecast outcomes are not the result of purely mechanical calculations.

Rational expectations? Developer behaviour and development cycles in the central London office market

Purpose – Expectations of future market conditions are acknowledged to be crucial for the development decision and hence for shaping the built environment. The purpose of this paper is to study the central London office market from 1987 to 2009 and test for evidence of rational, adaptive and naive expectations. Design/methodology/approach – Two parallel approaches are applied to test for either rational or adaptive/naive expectations: vector auto-regressive (VAR) approach with Granger causality tests and recursive OLS regression with one-step forecasts. Findings – Applying VAR models and a recursive OLS regression with one-step forecasts, the authors do not find evidence of adaptive and naïve expectations of developers. Although the magnitude of the errors and the length of time lags between market signal and construction starts vary over time and development cycles, the results confirm that developer decisions are explained, to a large extent, by contemporaneous and historic conditions in both the City and the West End, but this is more likely to stem from the lengthy design, financing and planning permission processes rather than adaptive or naive expectations. Research limitations/implications – More generally, the results of this study suggest that real estate cycles are largely generated endogenously rather than being the result of large demand shocks and/or irrational behaviour. Practical implications – Developers may be able to generate excess profits by exploiting market inefficiencies but this may be hindered in practice by the long periods necessary for planning and construction of the asset. Originality/value – This paper focuses the scholarly debate of real estate cycles on the role of expectations. It is also one of very few spatially disaggregate studies of the subject matter.

Shaping children’s mobilities: expectations of gendered parenting in the English rural idyll

This paper explores the impact of local parenting practices and children's everyday use of public space within two villages in the rural South West of England, an issue that has been underexplored in recent research. Drawing upon the concept of hybridity, it explores the interplay between the social, natural and material in shaping local cultures of rural parenting. The paper begins by drawing upon recent research on parenting in the global North, the gendering of rural space and hybridity to show how these bodies of work can be interlinked to better understand rural parenting practices and norms. Through empirical research that focused on the relationships between gendered parenting strategies, idealised notions of rural motherhood and materiality, the paper explores the diverse ways in which a group of working and middle-class mothers construct and define ideas about their children's lives and mobilities. Whilst dominant discourses of rurality focus upon the idyll, and gendered identities of rural women still remain within the domestic sphere, so we examine how these deeply embedded notions of ‘normality’ can be powerful social tools in rural villages, mobilised through discourses of materiality and anxiety. In our conclusions, we argue that the hybrid integration of the material and social provides a useful framework for understanding the everyday geographies of rural parenting.

"Oft expectation fails": a time-series analysis of construction starts in the London office market

Expectations of future market conditions are generally acknowledged to be crucial for the development decision and hence for shaping the built environment. This empirical study of the Central London office market from 1987 to 2009 tests for evidence of adaptive and naive expectations. Applying VAR models and a recursive OLS regression with one-step forecasts, we find evidence of adaptive and naïve, rather than rational expectations of developers. Although the magnitude of the errors and the length of time lags vary over time and development cycles, the results confirm that developers’ decisions are explained to a large extent by contemporaneous and past conditions in both London submarkets. The corollary of this finding is that developers may be able to generate excess profits by exploiting market inefficiencies but this may be hindered in practice by the long periods necessary for planning and construction of the asset. More generally, the results of this study suggest that real estate cycles are largely generated endogenously rather than being the result of unexpected exogenous shocks.

A multimodel assessment of future projections of North Atlantic and European extratropical cyclones in the CMIP5 climate models

The response of North Atlantic and European extratropical cyclones to climate change is investigated in the climate models participating in phase 5 of the Coupled Model Intercomparison Project (CMIP5). In contrast to previous multimodel studies, a feature-tracking algorithm is here applied to separately quantify the re- sponses in the number, the wind intensity, and the precipitation intensity of extratropical cyclones. Moreover, a statistical framework is employed to formally assess the uncertainties in the multimodel projections. Under the midrange representative concentration pathway (RCP4.5) emission scenario, the December–February (DJF) response is characterized by a tripolar pattern over Europe, with an increase in the number of cyclones in central Europe and a decreased number in the Norwegian and Mediterranean Seas. The June–August (JJA) response is characterized by a reduction in the number of North Atlantic cyclones along the southern flank of the storm track. The total number of cyclones decreases in both DJF (24%) and JJA (22%). Classifying cyclones according to their intensity indicates a slight basinwide reduction in the number of cy- clones associated with strong winds, but an increase in those associated with strong precipitation. However, in DJF, a slight increase in the number and intensity of cyclones associated with strong wind speeds is found over the United Kingdom and central Europe. The results are confirmed under the high-emission RCP8.5 scenario, where the signals tend to be larger. The sources of uncertainty in these projections are discussed.

Direct soil moisture controls of future global soil carbon changes: An important source of uncertainty

The nature of the climate–carbon cycle feedback depends critically on the response of soil carbon to climate, including changes in moisture. However, soil moisture–carbon feedback responses have not been investigated thoroughly. Uncertainty in the response of soil carbon to soil moisture changes could arise from uncertainty in the relationship between soil moisture and heterotrophic respiration. We used twelve soil moisture–respiration functions (SMRFs) with a soil carbon model (RothC) and data from a coupled climate–carbon cycle general circulation model to investigate the impact of direct heterotrophic respiration dependence on soil moisture on the climate carbon cycle feedback. Global changes in soil moisture acted to oppose temperature‐driven decreases in soil carbon and hence tended to increase soil carbon storage. We found considerable uncertainty in soil carbon changes due to the response of soil respiration to soil moisture. The use of different SMRFs resulted in both large losses and small gains in future global soil carbon stocks, whether considering all climate forcings or only moisture changes. Regionally, the greatest range in soil carbon changes across SMRFs was found where the largest soil carbon changes occurred. Further research is needed to constrain the soil moisture–respiration relationship and thus reduce uncertainty in climate–carbon cycle feedbacks. There may also be considerable uncertainty in the regional responses of soil carbon to soil moisture changes since climate model predictions of regional soil moisture changes are less coherent than temperature changes.

Comparing projections of future changes in runoff from hydrological and biome models in ISI-MIP

Future changes in runoff can have important implications for water resources and flooding. In this study, runoff projections from ISI-MIP (Inter-sectoral Impact Model Inter-comparison Project) simulations forced with HadGEM2-ES bias-corrected climate data under the Representative Concentration Pathway 8.5 have been analysed for differences between impact models. Projections of change from a baseline period (1981-2010) to the future (2070-2099) from 12 impacts models which contributed to the hydrological and biomes sectors of ISI-MIP were studied. The biome models differed from the hydrological models by the inclusion of CO2 impacts and most also included a dynamic vegetation distribution. The biome and hydrological models agreed on the sign of runoff change for most regions of the world. However, in West Africa, the hydrological models projected drying, and the biome models a moistening. The biome models tended to produce larger increases and smaller decreases in regionally averaged runoff than the hydrological models, although there is large inter-model spread. The timing of runoff change was similar, but there were differences in magnitude, particularly at peak runoff. The impact of vegetation distribution change was much smaller than the projected change over time, while elevated CO2 had an effect as large as the magnitude of change over time projected by some models in some regions. The effect of CO2 on runoff was not consistent across the models, with two models showing increases and two decreases. There was also more spread in projections from the runs with elevated CO2 than with constant CO2. The biome models which gave increased runoff from elevated CO2 were also those which differed most from the hydrological models. Spatially, regions with most difference between model types tended to be projected to have most effect from elevated CO2, and seasonal differences were also similar, so elevated CO2 can partly explain the differences between hydrological and biome model runoff change projections. Therefore, this shows that a range of impact models should be considered to give the full range of uncertainty in impacts studies.

What do they expect? : A case study on the work expectations of the working German Generation Y

Purpose – The purpose of this paper is to identify the expectations of the workingGerman Generation Y regarding its current work and employer. As a result, the mainelements which could be considered by companies to retain the Generation Y inGermany will be pointed out and discussed.Design/methodology/approach – Semi-structured interviews were used in order toexplore the work expectations of this young generation within a German company. Anon-probability and purposive sample was used and six respondents part of theGeneration Y and working in the same company were interviewed. Furthermore, aseventh interview was conducted with the HMR of the company.Findings – Several findings are consistent with previous results of Gen Y from othernationalities than Germany such as the importance of varied tasks, opportunities forself-development, responsibilities and a pleasant working atmosphere. However,differences were found in particular regarding the importance of the work-life balanceand new expectations such as trust, autonomy and internationality have been broughtto light. Furthermore, several findings are also consistent with other studies aboutemployee retention, commitment and job satisfaction.Originality/value – This research extended previous studies of the expectations of theGeneration Y by providing firstly findings for Germany, a country where such studieshave not been conducted yet and secondly by focusing on the Generation Y who isalready working and therefore not studying anymore.

ESTIMATED NUMBER AND LOCATION OF FUTURE MOOSE-VEHICLE COLLISIONS (MVC) IN MAINE

http://digitalcommons.colby.edu/atlasofmaine2005/1018/thumbnail.jpg

ANALYSIS OF FUTURE CONSTRUCTION POSSIBILITIES ON THE COLBY COLLEGE CAMPUS

http://digitalcommons.colby.edu/atlasofmaine2005/1020/thumbnail.jpg

Estimated Number and Location of Future Moose-Vehicle Collisions (MVC) in Maine

Moose (Alces alces) are a keystone herbivore in Maine. Because of the large number of rural roads in Maine, there is a high rate of moose-vehicle collisions (MVCs), which is increasing. On-road encounters with animals resulted in 231 fatalities in the United States in 1999. Because of the fatality of MVCs, it is important to know where they are most likely to occur. I used GIS analysis to estimate where future MVCs would occur, factoring in the variables of land cover suitability for moose, distance from water bodies, locations of past MVCs, and speed limits on the roads. I ran four different analyses, each one weighting the variables equally. I also ran a regression to determine if increasing road speed was associated with the increase in the number of MVCs per length of road. There was not a strong positive relationship between the number of MVCs per length of road and the speed limit, but it was interesting to note that there were more MVCs per length of road on 35mph and 40mph roads than on 45, 50, 55 or 65mph roads. Future research on MVCs would benefit from the inclusion of include moose population density and road traffic data.

Analysis of Future Construction Possibilities on the Colby College Campus

With the recent construction of Colby Green and the current plans for the construction of several new buildings, the total area for future development on campus has declined. The goal of this study was to illustrate existing campus development and to determine where future growth could occur. GIS was used to in determining the different soil systems on campus, the current use of the land, and the boundaries of the Colby property. The project shows what potential obstacles the college will have in attempting to expand the campus and proposes where the best options are for construction are.