September 28, 2016

Economic Value of Repair
Repairs that are well-planned and consistent have a positive impact on rent.

REPORT SUMMARY
● Office buildings are now used for a longer period of time and the value of the property will decrease (the "deterioration" of the value) for all the stakeholders: the landlords, investors, tenants and others. We must face this risk. ● Well-planned and consistent repairs against such risk are important. Use the idea of the risk management. More specifically, the future risk should be analyzed first and then a repair plan should be prepared. Each repair should be performed in a timely manner (not all at once). ● The new rent is 3%-7% higher for buildings with a repair plan and timely implementations of such plan; the data accumulated by Xymax revealed. ● Repair is an important part of real estate management. It is not only about fixing the failure. Well-planned and consistent repairs can mitigate the risk of deterioration and give benefit to the building.

REPORT SUMMARY

● Office buildings are now used for a longer period of time and the value of the property will decrease (the "deterioration" of the value) for all the stakeholders: the landlords, investors, tenants and others. We must face this risk.
● Well-planned and consistent repairs against such risk are important. Use the idea of the risk management. More specifically, the future risk should be analyzed first and then a repair plan should be prepared. Each repair should be performed in a timely manner (not all at once).
● The new rent is 3%-7% higher for buildings with a repair plan and timely implementations of such plan; the data accumulated by Xymax revealed.
● Repair is an important part of real estate management. It is not only about fixing the failure. Well-planned and consistent repairs can mitigate the risk of deterioration and give benefit to the building.