Freeman, Leonie M.2010-11-102010-11-101987https://hdl.handle.net/10182/2779Many factors influence the success of a potential investment in real estate. Successful real estate decisions require a careful analysis of the many contingencies involved. This thesis focuses on the various steps involved in the real estate investment procedure, and introduces some new concepts to aid feasibility analyses of commercial property investment. The first stage in this procedure is to identify the objectives, goals and constraints of the various types of investors. A personal interview survey was conducted to determine the groups participating in the Christchurch central city commercial property market. The objective of the survey was to measure the individual characteristics and objectives of the investors, determine their awareness of the important financial and market factors involved when undertaking an investment in commercial property, and the techniques they used to quantify potential investment decisions. Real estate market analysis encompasses a broad range of factors. This study has focused on the supply and demand of commercial office space in Christchurch. Two models illustrated in American literature were adapted to analyse the Christchurch market in an attempt to make an assessment of the potential demand requirements for central city office space. A simple econometric analysis was undertaken to determine whether any relevant indicators for office space demand could be identified. The results of the analysis highlighted the areas of information required for any further work in this area. Continued monitoring and modification of the models described here can only assist in improving the accuracy of assessing the potential demand for commercial office space. The application of linear programming as a financial analysis technique for commercial properties was investigated. A multi-period mixed-integer linear programming model was constructed to represent an office block development in Christchurch. The objective of the model was to maximise the net present value over the investment period. The model was used to analyse a range of development alternatives. Options investigated included the number of floors, the option of a basement carpark and the floors in which air conditioning was installed. Capital was available from either mortgage finance or equity sources. Interest was paid annually on money borrowed with the option of principal repayments being included each year. The building was subsequently leased, with the option of selling or leasing individual floors in years 10 through 15. The building was sold in the final period - year 16. The optimal solution was determined, and the impact of changes in discount rates, holding period, capital availability, interest rates, building costs and rental growth was ascertained. The results indicated that linear programming can be used successfully as a financial analysis technique in real estate investment decision making. It proved especially beneficial where the investor has a number of options from which to choose.enhttps://researcharchive.lincoln.ac.nz/pages/rightsmulti-period mixed-integer linear programming modeloffice space supply and demandcommercial property investment analysisfeasibility analysisobjectives and constraints of commercial property investorsreal estateThesisDigital thesis can be viewed by current staff and students of Lincoln University only. If you are the author of this item, please contact us if you wish to discuss making the full text publicly available.ANZSRC::070106 Farm Management, Rural Management and AgribusinessANZSRC::150205 Investment and Risk ManagementQ112846859