Tremors and tenants. The effect of a natural disaster and policy changes on commercial office occupiers in New Zealand
| Published date | 07 March 2016 |
| Pages | 143-155 |
| DOI | https://doi.org/10.1108/JPIF-09-2015-0064 |
| Date | 07 March 2016 |
| Author | Olga Filippova |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
Tremors and tenants
The effect of a natural disaster and policy
changes on commercial office occupiers
in New Zealand
Olga Filippova
Department of Property, The University of Auckland,
Auckland, New Zealand
Abstract
Purpose –The purpose of this paper is to explore the changes in commercial office occupiers’
preferencesin their building choice as a resultof a recent natural disaster whichtriggered policy changes
in building safety.
Design/methodology/approach –This study follows a qualitative research design comprising
semi-structured one-on-one interviews with 24 property professionals (commercial leasing agents and
property managers) in Auckland, New Zealand. A thematic analysis was employed for identifying,
analysing and reporting themes emerged within data.
Findings –Tenants across New Zealand now incorporate earthquake issues in their leasing decisions.
Most tenants are familiar with the impending policy changes related to earthquake-prone buildings.
The degree to which building standards are incorporated into office occupiers’choice varies with the
size of the organisation and their willingness to invest in their corporate social responsibility. A certain
level of overreaction was observed in tenants’behaviour in the face of risk and uncertainty following
the earthquakes. However, risk appears to be subsiding and emphasis is placed on availability of space
in desirable locations.
Research limitations/implications –The findings arelimited due to a non-random sample selection
and a small sample size.Further quantitative research is required to determine if officetenants place a
premium on occupying seismically safe buildings since forthcoming regulatory changes have been
announced.
Practical/implications –This study provides evidence that imminent building policy changes are
efficient in raising public awareness and informing perceptions of potential losses following a recent
natural disaster event. Building owners can potentially capitalise on tenants’desire to occupy high
quality space.
Originality/value –This is the first study that develops the knowledge base identifying the
perceptions of tenants about seismic safety of buildings since the Canterbury earthquakes. The study
also contributes to the literature on the market effect of policy changes triggered by a focusing event.
Keywords Office buildings, Building regulation, Earthquake risk, Earthquake-prone buildings,
Post disaster recovery, Tenants
Paper type Research paper
Introduction
The unprecedented seismic activity in the Canterbury Region from late 2010 through
early 2011 has led to a marked increase in concerns regarding building performance
during earthquakes over the whole of New Zealand. The most recent earthquake struck
Christchurch on 22 February 2011, and was especially destructive, resulting in the loss
of 185 lives. There has also been widespread damage inflicted on a large number of
residential and commercial buildings in Christchurch city. Nearly 1,300 buildings in the
Christchurch Central Business District’s“Rebuild Zone”will eventually be demolished,
Journal of Property Investment &
Finance
Vol. 34 No. 2, 2016
pp. 143-155
©Emerald Group Publis hing Limited
1463-578X
DOI 10.1108/JPIF-09-2015-0064
Received 8 September 2015
Revised 27 October 2015
Accepted 11 November 2015
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1463-578X.htm
The author would like to thank Adam Curtis for his assistance in the early stages of this study.
143
Tremors
and tenants
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