ABSTRACT
The optimization of interventions for urban regeneration projects is a complex task that involves substantial investments and impacts the service provided to stakeholders over a long period. Part of the complexity of optimizing interventions on large building portfolio is that they are typically financed by a subset of the affected stakeholders, i.e., the owners or building developers who are understandably inclined to maximize their own interests and not those of the wider community. Another part is the need to account for uncertainty in future market demand across a portfolio of buildings, e.g., the possible future large-scale use of remote working, makes it questionable whether the current fixed configurations of many buildings (e.g., offices that have been dimensioned for a fixed demand, and residential units without proper places to work) will enable an optimal use of space, affecting the service provided to multiple stakeholders. This problem is particularly acute in urban areas. In recent years, the possibility has been put forward to use the real options method for optimizing the design and management of assets considering future uncertainty. The method, however, has never been used to determine optimal design of multiple buildings for multiple stakeholders. In this paper a general methodology is presented to evaluate design modifications for a building portfolio considering future uncertainty and the interests of multiple stakeholders. The methodology makes explicit that there is a need to consider the effects of regulations and incentives in to encourage owners to select design modifications that are in the best interest of all stakeholders.
