Measuring the added value of housing for primary education Dirk Kootstra

Dirk Kootstra Researcher Professorship Public Real Estate, Hanze University of Applied Sciences, Groningen PhD-candidate Radboud University Nijmegen Lecturer Real Estate Valuation (Real Estate Management)

“Measuring the added value of housing for primary education” Outline presentation: Introduction: why and how ? Results: main outcome? Conclusion

The system of primary education in the Netherlands: Municipalities provide the building (receive money (not earmarked!) from the ministry of internal affairs) (beneficial owner) Schoolboards use the building (lump sum from ministry of education) (Legal owner)

My statement: (split incentive!) “This is not the best way to add value to education with schoolbuildings!” (split incentive!) Because the rules profide insufficient freedom of policy to the schoolboards

Real Estate as the 5th Resource: It’s vital to see real estate also as a capital asset that can be used for goals that may be achieved in the longer term ! Besides Capital, know-how, technology en human resources. Then the question is: for who is it the 5th resource?

Real Estate as the 5th Resource: Influence of Real estate on the achievements of an organisation: Lower costs Reduced energy consumption Effects on employees, visitors and processes Besides Capital, know-how, technology en human resources. Then the question is: for who is it the 5th resource?

A schoolbuilding adds value for: - Municipality School boards Employees Parents/children Environment

Real estate can add value to an organization because of it’s influence on: - Value of the property Marketing Innovations Satisfaction of employees Productivity Flexibility Reduction of costs Exchange value Use value

Question: is this, or in what way is this also relevant for the stakeholders of the housing of primary education?

This figure showes the relevance as assumed, this is tested by the interviews

Narrative interviews with professionally involved people Only one question asked: “from your perspective, which added value could housing of primary education have for the different stakeholders” The different stakeholders were mentioned, but not the ways in wich Real estate can add value.

Most important: I was wrong regarding the “increasing value of the property” Not even limiting the depreciations of buildings was mentioned.

Conclusion: Professionals are aware of most of the possible ways that real estate can be of added value The added value is expressed in many different ways and is perceived differently However,

Conclusion: These possibilities hardly ever play a role in a real estate strategy, nor is it used as an argument to increase budgets F.I. if you know you can safe money with a good buildig because of less sick leave, why not invest more and increase the budget for a school.

Thank you very much for your attention! If you want more information or if you have information, please contact me: email: d.kootstra@pl.hanze.nl Phone 0031 655372880

contact: mr. D. (Dirk) Kootstra MScRE Measuring the added value of housing for primary education Hanze University of Applied Sciences, Professorship Public Real Estate contact: mr. D. (Dirk) Kootstra MScRE Email: d.kootstra@pl.hanze.nl phone: 0031655372880