The determination of occupancy costs during early project phases

Christian Stoy and Wolfdietrich Kalusche

Construction Management and Economics, 2006, vol. 24, issue 9, 933-944

Abstract: In addition to the earnings, costs determine the commercial success of real estate investments. The discussion in the German-speaking region focuses on occupancy costs and their planning. When planning, the occupancy costs must be determined early, continually monitored, and controlled if necessary. A process for determining occupancy costs, the construction element process, is presented and tested using an actual property. The test results deviate by only approximately 8% from the occupancy costs actually incurred. The process demonstrates its suitability for the early determination of occupancy costs using only a few pieces of data on the property. However, it does require occupancy cost indicators. Also, the significant drivers of these indictors must be known in order to select the appropriate indicator. For this reason, future work on occupancy costs must not only collect additional data, but the data must also be analysed with regard to the cost drivers.

Keywords: Occupancy costs; cost planning; construction element process; building planning; Germany (search for similar items in EconPapers)
Date: 2006
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/01446190600799307 (text/html)
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:taf:conmgt:v:24:y:2006:i:9:p:933-944

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RCME20

DOI: 10.1080/01446190600799307

Access Statistics for this article

Construction Management and Economics is currently edited by Will Hughes

More articles in Construction Management and Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().