Evaluation of Business Needs and Factors Affecting Property Purchase Decision in Amsterdam

RESEARCH AND PROFESSIONAL PRACTICE
1

Business expansion is important for surviving in competitive global marketplace (Shiller,
2013). This study has focused on evaluating the needs of BT group for space and
identification of critical factors that affect the purchase decision of property. Aim of this
research is to develop an understanding of needs to purchasing or taking lease of property
In addition, this study needs to inform the consumer of Amsterdam marketplace through
sharing information regarding demand & supply, availability of space, rates of take-up, lease
terms and terms of rental levels for existing buildings as well as design & develop.
Furthermore, it is important to give a rental advice plan to the client to understanding tax
system and value of capital.
In the literature review part, it has been mentioned that organizations think about expenses
during making decision regarding leasing or purchasing a property. However, purchasing
land depends on different factors like property appraisals, long term savings, and others. A
firm has less liability if a property was acquired through leasing or renting. Different aspects
require considering, during purchasing or leasing land, which includes commercial land
market, impact of tax and value of property. As opined by Biermanand Smidt (2007), one of
the main reasons to purchase commercial properties is value appreciation. Purchasing land or
other property saves an owner from paying monthly rents and other installments. Moreover, a
business generally uses 51% of commercial space on an average. Remaining space can be
rented that helps to improve return from investment. Different benefits of leasing property are
also described that includes high liquidity of assets (Zeller et al. 2015). During starting a
business additional stress in owning a property can be avoided by leasing. Moreover,
maintenance charges are also low that helps in improving operations of a business. As stated
by McGegor (2017), different aspects like nature of market, operations and business goals
need to be aligned for making purchase decision.
Aim of this research is to evaluate needs business through aligning this fact to Amsterdam's
real estate market. Research question has been set for achieving aims of this project.
Inductive research approach will be followed and secondary data regarding real estate
decision making in Amsterdam will be considered for this research. This methodology is
helpful to understand renting system of particular place (Daniel and Sam, 2011). Secondary
resources regarding market trends, selling & buying rate of property, availability of real
estate and potential challenges in purchasing or taking lease of property in Amsterdam.
In this study, need of client is 10000 sqm in Amsterdam Zuidas Business District. In addition,
they also need branding on outer part of the building, which is a part of company’s
commercial as well as business model. Moreover, this building must have the capacity to
2