Building as an Economic Process

In most economies, buildings represent a large part of the capital stock as well as of annual capital expenditures, and the consequences of poor management are highly significant. Decision-makers may have day-to-day operational control of large real property holdings and the economic consequences of sub-optimal behaviour are highly significant.

In Building as an Economic Process, Bang and Bon argue that a building should be viewed as a long serving capital asset and evaluated in conjunction with the other capital assets of the owner. Ownership of a building is therefore viewed as a continuous capital management process. Emphasis is given to the appropriate choice of building design in light of the uncertainties of its future use and on the continuous adjustment of the capital base of the owner's total building stock, as well as other capital stock, in light of changing economic conditions.

Requiring some prior background in basic economics, this book is an excellent reference for sophisticated property managers, academics and teaching staff, and as a supplementary text to graduate students.