Commercial property owners are facing not just higher insurance premiums following the Christchurch earthquakes, but also the prospect of much higher excesses.
Damage to a commercial building. The brick parapets have collapsed, crushing the awning below.
A video of an address by developer Stephen Collins, at the 2015 Seismics and the City forum. This talk focuses on commercial development progress, and opportunities and issues in Central Christchurch and beyond.
A video of an address by Nick Hunt, Managing Director of Lichfield Holdings Ltd, at the 2015 Seismics and the City forum. This talk focuses on commercial development progress, and opportunities and issues in Central Christchurch and beyond.
A video of an address by Antony Gough, Managing Director of Hereford Holdings Ltd, at the 2014 Seismics and the City forum. This talk was part of the Building Opportunities section, and explored commercial development opportunities in Central Christchurch, the constraints, and what needs to be done.
A video of a presentation by Justin Kean, Director of Research and Consulting at JLL, at the 2016 Seismics in the City Conference. The presentation is titled, "Factors Shaping the Industrial and Commercial Evolution of Greater Christchurch".
Lincoln University and CBRE, a commercial real estate service provider, have conducted research to investigate the impacts of the Canterbury earthquake on the commercial office market in Christchurch. The 22 February 2011 Canterbury earthquake had a devastating impact on Christchurch property with significant damage caused to land and buildings. As at January 2012, around 740 buildings have either been demolished or identified to be demolished in central Christchurch. On top of this, around 140 buildings have either been partially demolished or identified to be partially demolished. The broad aims of our research are to (i) examine the nature and extent of the CBD office relocation, (ii) identify the nature of the occupiers, (iii) determine occupier’s perceptions of the future: their location and space needs post the February earthquake, and the likelihood of relocating back to the CBD after the rebuild, and (iv) find out what occupiers see as the future of the CBD, and how they want this to look.
The Property Council says an ultimatum from the Christchurch City Council to owners of earthquake damaged commercial buildings will add to the stress business people are already under.
The red brick, cream stone and plaster building on the corner of Manchester and Hereford Street, proudly displays the architectural features becoming commonplace in the commercial confines of this…
On the north east corner of Cathedral Square, the Commercial Hotel, owned by John Etherden Coker (1832 – 1894) was opened in 1863. The name Warner’s was not used until the hotel’s…
A video of an address by David Freeman-Greene, General Manager for Commercial at Orion, at the 2014 Seismics and the City forum. This talk was part of the Building Innovation section.
Ballantynes and Hobdays on Cashel Street in 1882 The Burton Brothers captured this softly lit image of Cashel Street, the main commercial street of Christchurch. The camera sits at the corner of Hi…
We examine the role of business interruption insurance in business recovery following the Christchurch earthquake in 2011 in the short- and medium-term. In the short-term analysis, we ask whether insurance increases the likelihood of business survival in the aftermath of a disaster. We find only weak evidence that those firms that had incurred damage, but were covered by business interruption insurance, had higher likelihood of survival post-quake compared with those firms that did not have insurance. This absence of evidence may reflect the high degree of uncertainty in the months following the 2011 earthquake and the multiplicity of severe aftershocks. For the medium-term, our results show a more explicit role for insurance in the aftermath of a disaster. Firms with business interruption insurance have a higher probability of increasing productivity and improved performance following a catastrophe. Furthermore, our results show that those organisations that receive prompt and full payments of their claims have a better recovery, in terms of profitability and a subjective ‘”better off” measure’ than those that had protracted or inadequate claim payments (less than 80% of the claim paid within 2.5 years). Interestingly, the latter group does worse than those organisations that had damage but no insurance coverage. This analysis strongly indicates the importance not only of good insurance coverage, but of an insurance system that also delivers prompt claim payments. As a first paper attempting to empirically identify a causal effect of insurance on business recovery, we also emphasize some caveats to our analysis.
The Canterbury earthquakes in 2010 and 2011 had a significant impact on landlords and tenants of commercial buildings in the city of Christchurch. The devastation wrought on the city was so severe that in an unprecedented response to this disaster a cordon was erected around the central business district for nearly two and half years while demolition, repairs and rebuilding took place. Despite the destruction, not all buildings were damaged. Many could have been occupied and used immediately if they had not been within the cordoned area. Others had only minor damage but repairs to them could not be commenced, let alone completed, owing to restrictions on access caused by the cordon. Tenants were faced with a major problem in that they could not access their buildings and it was likely to be a long time before they would be allowed access again. The other problem was uncertainty about the legal position as neither the standard form leases in use, nor any statute, provided for issues arising from an inaccessible building. The parties were therefore uncertain about their legal rights and obligations in this situation. Landlords and tenants were unsure whether tenants were required to pay rent for a building that could not be accessed or whether they could terminate their leases on the basis that the building was inaccessible. This thesis looks at whether the common law doctrine of frustration could apply to leases in these circumstances, where the lease had made no provision. It analyses the history of the doctrine and how it applies to a lease, the standard form leases in use at the time of the earthquakes and the unexpected and extraordinary nature of the earthquakes. It then reports on the findings of the qualitative empirical research undertaken to look at the experiences of landlords and tenants after the earthquakes. It is argued that the circumstances of landlords and tenants met the test for the doctrine of frustration. Therefore, the doctrine could have applied to leases to enable the parties to terminate them. It concludes with a suggestion for reform in the form of a new Act to govern the special relationship between commercial landlords and tenants, similar to legislation already in place covering other types of relationships like those in residential tenancies and employment. Such legislation could provide dispute resolution services to enable landlords and tenants to have access to justice to determine their legal rights at all times, and in particular, in times of crisis.
Some owners of commercial buildings badly damaged in the Canterbury earthquake, have been told if they don't repair or demolish them by January the 31st, the Christchurch City Council will do it for them.
A video of an address by Kevin Lynn, General Manager of Commercial Operations at Schneider Electric NZ, at the 2015 Seismics and the City forum. This talk focuses on smart buildings and new ways of working.
Toni Collins is a Canterbury University PhD researcher in law, who is investigating how commercial leases could be written to better deal with the aftermath of earthquakes, and how cases of disputes could progress through the courts.
The coordination of actors has been a major focus for much of the research in the disaster relief humanitarian logistics discipline. While much of this literature focuses on the initial response phase, little has been written on the longer term recover phase. As the response phase transitions into the longer term recover phase the number and types of actors change from predominantly disaster relief NGOs to more commercial entities we argue that humanitarian values should still be part of the rebuild phase. It has been noted that humanitarian actors both cooperate and compete at the same time (Balcik, Beamon, Krejci, Muramatsu and Ramirez, 2010), in a form of behavior that can be described as ‘co-opetition’ (Nalebuff and Brandenburger, 1996). We use a case study approach to examine an organizational model used to coordinate civil and commercial actors for the rebuild of the civil infrastructure for Christchurch, New Zealand following a series of devastating earthquakes in 2010/11. For the rebuild phase we argue that ‘co-opetition’ is a key behaviour that allows the blending of humanitarian and commercial values to help communities rebuild to a new normal. While at this early stage our contribution is limited, we eventually hope to fully elaborate on an organisational model that has been created specifically for the tight coordination of commercial actors and its relevance to the rebuild phase of a disaster. Examining the behaviour of co-opetition and the structures that incentivise this behaviour offers insights for the humanitarian logistic field.
Base isolation has generally been considered an expensive system used mainly in commercial buildings to make them more earthquake resilient. Katy Gosset meets the University of Canterbury engineers who've developed a safe, low cost model that could work in our homes.
We have published previously on the importance of buildings, be they residential or commercial, as an artefact in understanding 19th century culture in New Zealand. While it’s easy to overlook the humble cottage as a source of archaeological data, houses … Continue reading →
What would we do without glue? Well, it’s estimated that each person in U.S.A and the U.K. uses 18.2kgs of glue annually. I’m probably more of a Sellotape/Blu-Tack person myself, but those statistics sound impressive! The development of commercial synthetic … Continue reading →
Copy of a file photograph captioned by Fairfax, "The New Zealand Express Company's new building, corner of Hereford Street and Manchester Street. Electric lighting, pumping, elevators, May & Otway's fire alarms, bells and telephones, supplied by Messrs Turnbull & Jones Ltd. Manchester courts MLC building from The Weekly Press 'New Zealand Exhibition Year Special Industrial & Commercial Number' December 1906".
Insurance is widely acknowledged as a key component in an organisation's disaster preparedness and resilience. But how effective is insurance in aiding business recovery following a major disaster? The aim of this research was to summarise the experiences of both the insurance industry and businesses dealing with commercial insurance claims following the 2010 and 2011 Canterbury earthquakes.
A video of an interview with Andrew Wheely about the Whare store which has been operating from a garage since the 22 February 2011 earthquake. Wheely talks about how small businesses need flexible commercial leases to survive in the post-earthquake market. He also talks about the diploma in project management he has undertaken at the CPIT since the earthquakes.
A passerby stops at an advertisement on the lawn outside a house which reads 'Sound commercial property - Christchurch $450,000' and comments to the owner that it 'seems a good buy'. The owner tells him that's 'the yearly rental'. Context - property and rental prices in Christchurch since the earthquakes of 4 September 2010 and 22 February 2011. Quantity: 1 digital cartoon(s).
A Taranaki business owner is warning leaseholders to read the fine print of their contracts after being asked to pay his rent in full despite a clause in his lease allowing for a rent cut if he couldn't legally access the property. Clause 27.5 was included in the Auckland District Law Society commercial lease in 2012 in response to the Canterbury earthquakes, when many leaseholders were barred from their businesses. RNZ reporter Robin Martin has more.
A scanned copy of a black and white photograph of the argon gas laser used by David Lockwood in his PhD research at the University of Canterbury. David says, "In contrast to the He-Ne laser I developed for my MSc thesis, the laser I used was one of the first commercial lasers - an argon gas laser that required frequent painstaking maintenance. This was because the He-Ne gas laser did not produce enough power for my experiments".
Highlights from Radio New Zealand National's programmes for the week ending Friday 6th April. This week... we look at the commercial deals some media personalities are making these days, a documentary on the history of New Zealand's psychiatric hospitals, a new social phenomenon - the increasing number of people who choose to live alone, a new book and interesting findings about our national icon the kiwi, With the aid of advanced functional MRI scanners, scientists are getting closer to being able to read your mind, the opening of a public art project by the Christchurch Art Gallery to try and ensure art continues to have a presence in the earthquake hit city.
Recent advances in timber design at the University of Canterbury have led to new structural systems that are appropriate for a wide range of building types, including multi-storey commercial office structures. These buildings are competitive with more traditional construction materials in terms of cost, sustainability and structural performance. This paper provides seismic design recommendations and analytical modelling approaches, appropriate for the seismic design of post-tensioned coupled timber wall systems. The models are based on existing seismic design theory for precast post-tensioned concrete, modified to more accurately account for elastic deformation of the timber wall systems and the influence of the floor system. Experimental test data from a two storey post-tensioned timber building, designed, constructed and tested at the University of Canterbury is used to validate the analytical models.
The 22 February 2011, Mw6.2-6.3 Christchurch earthquake is the most costly earthquake to affect New Zealand, causing 181 fatalities and severely damaging thousands of residential and commercial buildings, and most of the city lifelines and infrastructure. This manuscript presents an overview of observed geotechnical aspects of this earthquake as well as some of the completed and on-going research investigations. A unique aspect, which is particularly emphasized, is the severity and spatial extent of liquefaction occurring in native soils. Overall, both the spatial extent and severity of liquefaction in the city was greater than in the preceding 4th September 2010 Darfield earthquake, including numerous areas that liquefied in both events. Liquefaction and lateral spreading, variable over both large and short spatial scales, affected commercial structures in the Central Business District (CBD) in a variety of ways including: total and differential settlements and tilting; punching settlements of structures with shallow foundations; differential movements of components of complex structures; and interaction of adjacent structures via common foundation soils. Liquefaction was most severe in residential areas located to the east of the CBD as a result of stronger ground shaking due to the proximity to the causative fault, a high water table approximately 1m from the surface, and soils with composition and states of high susceptibility and potential for liquefaction. Total and differential settlements, and lateral movements, due to liquefaction and lateral spreading is estimated to have severely compromised 15,000 residential structures, the majority of which otherwise sustained only minor to moderate damage directly due to inertial loading from ground shaking. Liquefaction also had a profound effect on lifelines and other infrastructure, particularly bridge structures, and underground services. Minor damage was also observed at flood stop banks to the north of the city, which were more severely impacted in the 4th September 2010 Darfield earthquake. Due to the large high-frequency ground motion in the Port hills numerous rock falls and landslides also occurred, resulting in several fatalities and rendering some residential areas uninhabitable.