An output approach to property portfolio performance measurement

Abstract

Purpose

The purpose of this paper is to demonstrate the analysis of portfolios of office properties using measures of business outputs, namely occupation efficiency and staff satisfaction.

Design/methodology/approach

Satisfaction is measured using a proprietary online survey instrument that has proved highly reliable and repeatable in three separate trials. The data on 192 buildings are analysed using data envelopment analysis.

Findings

Instant and significant differences are revealed between clusters of buildings and individual properties. The approach reveals inefficiencies that are concealed by more conventional cost‐based metrics.

Practical implications

The study has proven to be of use in gaining organisational commitment to strategic property improvements.

Originality/value

The authors are not aware of this approach having been applied elsewhere in either research or application.

Citation

Price, I. and Clark, E. (2009), "An output approach to property portfolio performance measurement", Property Management, Vol. 27 No. 1, pp. 6-15. https://doi.org/10.1108/02637470910932647