Purpose Valuers face significant challenges as processes become automated and the role evolves to data handling and processing. To survive and thrive, valuers must respond to a changing market. The purpose of this paper is to examine the issues, threats and challenges facing the Australian profession, though the issues are global. Design/methodology/approach This qualitative research sought a deeper understanding of the threats, challenges and new areas of practice that Australian valuers were experiencing. A focus group approach was designed to collect data from practitioners in Sydney and Melbourne. The research aimed to identify new knowledge and skills for the future and emerging trends and practices. Findings The key issues, threats and challenges faced included increasing use of automated valuation models for low-risk residential valuations, valuers being unable to protect themselves against the banks, loss of control of the data and valuations. In total, 12 knowledge domains and skills required in the future were established and ten emerging trends and practices were identified. Research limitations/implications The key limitations were that participants were from Melbourne and Sydney in Australia only and the focus is NSW and Victoria centric, although many participants have international work experience. There was an under representation of rural valuers, of small valuation firms, of young, recently joined or qualified valuers and females. Practical implications The findings inform a manifesto for the future which sets out the practical implications for valuers and the professional body. This action plan sets the new knowledge domains, practices and trends that can be adopted by the profession and its members. Originality/value This is the original research and highlights some real threats, issues and challenges facing the Australian valuers. It complements work undertaken by legal and accounting professional bodies, which sense change affecting their membership and services. A manifesto for action has been outlined to address the changes that are coming and those already here.

Purpose -With strategies including flexible work practices, tenants are increasingly seeking flexibility in their physical office space and layouts. The purpose of this paper is to examine to what extent investors address tenants' changing demand for office space with reference to layouts in new and existing office buildings. Design/methodology/approach -A qualitative study comprising in-depth individual interviews with senior portfolio managers of all listed property trusts investing in the office sector in New Zealand was undertaken. Findings -The findings confirmed property investors incorporate several adaptive and flexible space design and specifications in their modern office buildings to enhance space flexibility and functional efficiency. These include adaptive building structures, efficient floor plates, flexible building services, advanced IT networking, high-quality building amenities and modern building materials. Building structures and layouts are designed to be modified quickly and cost effectively to address tenants' changing needs. Implications affecting tenant demand for flexible spaces on their lease contracts were also identified.Research limitations/implications -The findings from this research have implications for management of office space. Although the data were sourced with reference to buildings located in New Zealand only, the findings are applicable to office buildings in other countries. Practical implications -The study provides an insight into design strategies adopted in modern office buildings to enhance space flexibility and functional efficiency. These findings are of practical application to professionals involved in the design, development, investment and valuation of modern office buildings. Originality/value -The paper provides in-depth insights into how investors meet tenants' changing demand for physical space which is linked to delivering improved and stable market-driven returns to investors.

Purpose -This paper aims to examine the experiences of valuers when valuing market dominant and non-dominant standard lease structures. The research compares the perceptions and approaches of New Zealand valuers when valuing gross and net leases, two standard lease types commonly utilised in the New Zealand commercial property market. Design/methodology/approach -The study employs a structured survey of 87 commercial valuers practising in Auckland (where net leases dominate) and Wellington (where gross leases dominate) complemented by in-depth interviews with senior commercial valuers employed by large national/international multidisciplinary real estate companies. Findings -The results suggest that valuers find the process of valuing standard non-dominant lease structures more demanding than valuing dominant leases and tend to be comparatively less confident about carrying out valuations of leases with which they are less familiar. This lack of confidence tends to result from the lack of comparable evidence and the added complexity of the valuation process requiring additional valuer expertise and judgement. In addition the study uncovers the adoption of place-based differential valuation practices that have built up over time between the two centres under study. Originality/value -The paper contributes to the literature relating to valuer behaviour by revealing that even within one country with the same rules and professional standards different valuation practices may evolve. This study specifically identifies different dominant lease structures as being one of the reasons for these differential valuation practices. The findings also highlight the difficulties perceived by valuers when valuing non-dominant leases and in turn this may have implications when comparing the valuation outcomes of similar buildings within different markets.

The commercial property market in New Zealand is characterized by two standard but distinct lease environments. In Auckland, the commercial core of the economy, net leases dominate, whereas in Wellington, the political capital, gross leases are dominant. These different lease environments have the potential to strongly influence the nature of landlord and tenant relationships in these markets. Using in-depth interviews with key industry personnel, this study examines the perceptions, behaviours, experiences and key issues confronting landlords and tenants under net and gross leases. The paper examines how different lease structures affect the behavioural and attitudinal characteristics of landlords and tenants including: landlord/tenant perceptions of a lease, the operation and maintenance procedures, landlord-tenant relationship, and ultimately, overall satisfaction.