New boundaries: Conceptual framework for the analysis of commercial real estate in smart cities
Journal of Property Investment & Finance
ISSN: 1463-578X
Article publication date: 14 January 2019
Issue publication date: 24 January 2019
Abstract
Purpose
The purpose of this paper is to fill a gap in the real estate academic literature by defining the essence of real estate in smart urban environments. Space has traditionally been a silent component of real estate. Smart technologies powered by Ubi-comp are turning space into an active part of real estate, which represents a paradigm shift for commercial real estate. This shift requires new concepts and tools to analyse and model real estate in smart cities.
Design/methodology/approach
The paper defines the notions of smart space and smart real estate. Several concepts and tools are formulated, starting with a model of space users in smart cities, called the Cyber-Dasein inspired by Heidegger’s existential phenomenology of space.
Findings
The paper then analyses smart space’s attributes and proposes several metrics for commercial real estate in smart environments. After introducing three regression models for constructing a price index of smart real estate, the paper concludes by advocating that commercial real estate take an active role in the current debate about smart cities.
Research limitations/implications
The paper does not provide any empirical analysis of smart real estate.
Practical implications
Smart environments offer real estate a unique opportunity to set up methodologies, concepts and tools for new properties in new cities. Now is the time to think carefully about the impact smart technologies will have on commercial properties before other stakeholders (in particular smart cities vendors and multinational technology giants) have fully modelled smart space and its nexus with smart real estate.
Originality/value
This paper is the first paper to provide a conceptual framework for the analysis of commercial real estate in smart cities.
Keywords
Acknowledgements
This paper was presented at the 25th European Real Estate Society Annual Conference (27–30 June 2018; University of Reading, UK). The author expresses his thanks to the editor and anonymous reviewers for very useful comments. All errors and omissions are of the authors.
Citation
Lecomte, P. (2019), "New boundaries: Conceptual framework for the analysis of commercial real estate in smart cities", Journal of Property Investment & Finance, Vol. 37 No. 1, pp. 118-135. https://doi.org/10.1108/JPIF-10-2018-0083
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited