Obsolescence – a cause for concern?

Richard Grover and Christine Grover

Journal of Property Investment & Finance, 2015, vol. 33, issue 3, 299-314

Abstract: Purpose - – The purpose of this paper is to review what is known about obsolescence and its causes, and provide a critique of how it is reflected in valuations. Design/methodology/approach - – The method has been to review the literature on obsolescence to examine the main causes and whether there are approaches that can identify the vulnerability of buildings to the business models they are designed to satisfy becoming outmoded. Findings - – Obsolescence is an inherent part of the way in which market economies function as new competitors disrupt established business models. Investors need better methods to evaluate the risk that obsolescence poses to their portfolios. Practical implications - – Obsolescence can result in significant unpredicted losses of value. Originality/value - – Much of the literature on obsolescence treats it in the same way as depreciation without recognising its unpredictable nature. The paper explores alternative approaches to how obsolescence might be measured.

Keywords: Adaptive re-use; Depreciated replacement cost; Depreciation; Obsolescence; SERQUAL; Valuation standards (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jpifpp:v:33:y:2015:i:3:p:299-314

DOI: 10.1108/JPIF-02-2015-0016

Access Statistics for this article

Journal of Property Investment & Finance is currently edited by Nick French

More articles in Journal of Property Investment & Finance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().