An exploration of the impact of poor maintenance in commercial buildings and the risk during property acquisition

The fundamental purpose of this research study is to examine the impact of poor maintenance in commercial buildings and the exponential risk during property acquisition. By leveraging innovative solutions, implementing proactive maintenance strategies, and fostering stakeholder collaboration, property stakeholders can navigate the complexities of maintenance challenges, ensure long-term sustainability, and reduce the risk when acquiring commercial real estate assets in Australia's dynamic market landscape. The research findings indicate that the Australian property market is not immune to similar globally experienced exponential risks when commercial buildings are exchanged or acquired, and a research gap remains to be addressed. Further research is required to evaluate the effect of maintenance deficiencies on property valuation as the research should involve exploring the role of emerging technologies such as maintenance systems, building automation and BIM, and how these emerging technologies mitigate risks during property acquisition as this area represents a promising field for future research in the commercial real estate market. The discussion regarding the identification of poor maintenance during the property acquisition phase highlights the repercussion risks, including decreased property value, increased due diligence costs, elevated transactional risks, tenant dissatisfaction, and long-term operational financial implications.