The need for a more authoritative approach to investment decision-making and cost control has been a requirement of office spending for many years now. The commercial offices find itself in an increasingly demanding position to allocate its budgets as wisely and prudently as possible. The significant percentage of total spending on buildings demands a more accurate and adaptable method of achieving quality of service within the constraints on the budgets. By adoption of life cycle costing techniques with risk management, practitioners have the ability to make accurate forecasts of likely future running costs. This thesis presents a novel framework (Artificial Neural Networks and probabilistic simulations) for modelling of operating and maintenance historical costs as well as economic performance measures of LCC. The methodology consisted of eight steps and presented a novel approach to modelling the LCC of operating and maintenance costs of two sustainable commercial office buildings. Finally, a set of performance measurement indicators were utilised to draw inference from these results. Therefore, the contribution that this research aimed to achieve was to develop a dynamic LCC framework for sustainable commercial office buildings, and by means of two existing buildings, demonstrate how assumption modelling can be utilised within a probabilistic environment. In this research, the key themes of risk assessment, probabilistic assumption modelling and stochastic assessment of LCC has been addressed. Significant improvements in existing LCC models have been achieved in this research in an attempt to make the LCC model more accurate and meaningful to estate managers and high-level capital investment decision makers A new approach to modelling historical costs and forecasting these costs in sustainable commercial office buildings is presented based upon a combination of ANN methods and stochastic modelling of the annual forecasted data. These models provide a far more accurate representation of long-term building costs as the inherent risk associated with the forecasts is easily quantifiable and the forecasts are based on a sounder approach to forecasting than what was previously used in the commercial sector. A novel framework for modelling the facilities management costs in two sustainable commercial office buildings is also presented. This is not only useful for modelling the LCC of existing commercial office buildings as presented here, but has wider implications for modelling LCC in competing option modelling in commercial office buildings. The processes of assumption modelling presented in this work can be modified easily to represent other types of commercial office buildings. Discussions with policy makers in the real estate industry revealed that concerns were held over how these building costs can be modelled given that available historical data represents wide spending and are not cost specific to commercial office buildings. Similarly, a pilot and main survey questionnaire was aimed at ascertaining current level of LCC application in sustainable construction; ranking drivers and barriers of sustainable commercial office buildings and determining the applications and limitations of LCC. The survey result showed that respondents strongly agreed that key performance indicators and economic performance measures need to be incorporated into LCC and that it is important to consider the initial, operating and maintenance costs of building when conducting LCC analysis, respondents disagreed that the current LCC techniques are suitable for calculating the whole costs of buildings but agreed that there is a low accuracy of historical cost data.

bachelor thesis aims to analyze Arenastaden’s impact on existing and new office property values, as well as future property values. The evidence suggests that Arenastaden, with its 30 000 jobs, 3 000 homes, hotels with 400 rooms, Friends Arena and Mall of Scandinavia will, in 2020, have office rents in the range from 2 700 to 3 250 kr/m 2/year, rental rates only seen in the inner-city. Property values have increased by almost 50% over the past three years to 25,000 kr/m2, and if future rents is set to be approximately 3000 kr/m2/year in 2020, the property values are estimated to 40 000 kr/m2. The overall assessment argues that modernity, Mall of Scandinavia and the cluster of office workers has and will be among the most important factors in the development of Arenastaden into a neighborhood with high office rents and property values. / Detta kandidatarbete syftar till att analysera Arenastadens påverkan på befintliga och nya kontorsfastighetsvärden, och hur potentiell värdeförändring i framtiden kan se ut. Mycket tyder på att Arenastaden med sina 30 000 arbetsplatser, 3 000 bostäder, hotell med 400 rum, Friends Arena och Mall of Scandinavia kommer ha mycket höga kontorshyresnivåer runt år 2020 på uppskattningsvis 2 700 – 3 250 kr/m 2/år, som skulle innebära de högsta hyrorna i ytterstaden och kraftigt närma sig de hyror man i övrigt bara ser i innerstaden. Fastighetsvärdena har ökat med nästan 50% de senaste tre åren till 25 000 kr/m2, och om framtida hyresnivåer ökar till en nivå runt 3000 kr/m2/år år 2020, kan fastighetsvärdena bedömas till ca 40 000 kr/m2. Den sammanlagda bedömningen gör gällande att modernitet, Mall of Scandinavia och kluster av kontor har och kommer vara bland de viktigaste faktorerna i utvecklingen av Arenastaden till en stadsdel med höga kontorshyror och fastighetsvärden.