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Impact of real estate interventions on organisational performance

Jackie C. de Vries (Department of Real Estate & Housing, Delft University of Technology, Delft, The Netherlands)
Hans de Jonge (Department of Real Estate & Housing, Delft University of Technology, Delft, The Netherlands)
Theo J.M. van der Voordt (Department of Real Estate & Housing, Delft University of Technology, Delft, The Netherlands)

Journal of Corporate Real Estate

ISSN: 1463-001X

Article publication date: 25 July 2008

Abstract

Purpose

Real estate is increasingly used as a “fifth” resource to improve the performance of organisations by a positive image, cost reduction, increased employee satisfaction and increased labour productivity. A clear conceptual framework and standardised key performance indicators (KPIs) are needed to understand and monitor the effects of real estate interventions. This paper aims to explore the added value of real estate interventions to organisational performance, theoretically and empirically, including unforeseen positive and negative side‐effects.

Design/methodology/approach

The conceptual framework was based on an extensive literature survey and has been empirically used in a survey among 47 Institues of Higher Professional Education in The Netherlands and additional in‐depth interviews at nine institutes. The effects of real estate interventions were studied by conducting time series analyses of changing organisational performance using several KPIs.

Findings

The research has shown that real estate interventions actually improve organisational performance. However, the effects are not always as positive as expected, nor are they always clearly visible when using the present KPIs for organisational performance. And in addition, some effects are temporary.

Practical implications

The conceptual framework and the suggested KPIs can be used to support managers in effectively steering on organisational performance by means of real estate interventions, formulating targets in a SMART way, setting priorities with regard to their organisation's main objectives, and monitoring the effects.

Originality/value

The conceptual framework integrates know‐how from various studies and fields and was empirically used in educational settings.

Keywords

Citation

de Vries, J.C., de Jonge, H. and van der Voordt, T.J.M. (2008), "Impact of real estate interventions on organisational performance", Journal of Corporate Real Estate, Vol. 10 No. 3, pp. 208-223. https://doi.org/10.1108/14630010810922094

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited