Development of a methodology for increasing the economic efficiency of a commercial real estate facility within the framework of a reconceptualization project in the context of current market trends

Abstract

Each commercial real estate facility, whose functional concept remains unchanged for a long time, can be exposed to the influence of external and internal factors, that may reduce its economic efficiency and purchasing power that need to be restored by landlords who will take urgent measures. Reconceptualization is a method used to improve the economic efficiency of commercial and leisure property. The co-authors propose a methodological framework of selection, assessment and substantiation of project solutions, make a list of works and determine the general strategy of a reconceptualization project to increase the economic efficiency of a commercial real estate facility in the current market environment. It should also be noted that an economic crisis magnifies weaknesses of entertainment retail centres, and any reconceptualization strategy must take account of this phenomenon. Firstly, it is necessary to analyze the reasons for profit reduction, assess the resources and the potential of a facility, its market environment, and the prospects for its further operation. Under these conditions, reconceptualization may be regarded as an anti-crisis development strategy.