This thesis investigates the role of Façade-as-a-Service (FaaS) within the framework of circular economy business models, specifically focusing on its value for semi-public real estate owners and users. The research is motivated by the growing demand for sustainable solutions in
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This thesis investigates the role of Façade-as-a-Service (FaaS) within the framework of circular economy business models, specifically focusing on its value for semi-public real estate owners and users. The research is motivated by the growing demand for sustainable solutions in the built environment as global efforts to mitigate climate change and resource scarcity intensify. Façade Product-Service Systems (PSS) offer a promising alternative to traditional façade procurement by integrating both the product (the façade) and associated services (such as maintenance and energy management) into a single, long-term offering. The research aims to answer the question:
HOW DO FAÇADE PRODUCT SERVICE SYSTEMS (PSS) OFFER VALUE TO SEMI-PUBLIC REAL ESTATE OWNERS”
The thesis builds on a detailed literature review of PSS, value creation, and current valuation methodologies, identifying key theoretical foundations and knowledge gaps. The core research question centres on understanding how Façade PSS creates value for semi-public real estate owners. To answer this, the study employs a mixed-method approach, combining qualitative and quantitative research, including case studies, interviews, and financial simulations. The Civil Engineering (CiTG) building at TU Delft is selected as a case study to test the practical viability of the FaaS concept. Central to the analysis is the development and application of a financial model, particularly focusing on the Total Cost of Ownership (TCO) and Total Value of Ownership (TVO) frameworks. A sensitivity analysis assesses the financial risks and uncertainties inherent in long-term service contracts.
The empirical findings reveal that while technological readiness for FaaS is relatively high, financial and cultural barriers still hinder widespread adoption. Key challenges include the lack of standardised appraisal methods for real estate with integrated façade product service systems, as well as the perceived risks associated with circular business models. However, the results suggest that when properly implemented, FaaS can offer significant value to building owners by reducing operational costs, enhancing sustainability, and aligning with long-term portfolio management strategies.
This research contributes to the field of circular real estate by advancing the understanding of façade product-service systems and providing a framework for evaluating their financial and environmental benefits. It also offers practical recommendations for stakeholders interested in implementing FaaS, advocating for a shift towards value-driven, service-oriented approaches in building management. The thesis concludes by identifying future research opportunities, particularly in refining valuation models and exploring scalable financing solutions for circular business models.
