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The purpose of this paper is to describe the need to go beyond relationship management to embrace the techniques of value management with details on why and how CRE managers should pursue this as a professional goal.

This article discusses the experiences of the author working across multiple global corporate accounts. The article advances the discussion on how to strategically align and advance the performance of CRE departments to support business change for corporate competitive advantage.

As CRE managers strive to elevate their strategic relevance to the organization, they are challenged to go beyond relationship management. They are challenged to become value managers, capable of implementing corporate strategy anywhere and with anyone in the organization.

Further research is warranted into the perspectives of senior management on the contribution of CRE to the business planning process. CRE managers are often viewed as functional experts and may be overlooked as candidates for involvement in corporate management development programs.

CRE managers, in charge of business alignment, must turn a professional corner by focusing more on driving corporate value. A career choice is required to invest in the business and financial acumen needed to sit credibly at the planning table with senior management. The career path of the in‐house CRE manager is one of a general business manager, referred to in this article as a “value manager”.

CRE managers are challenged to adopt the behavior, attitude and skill set of general business managers to arrive at solutions to business challenges. These challenges are cross‐functional in nature and often do not start nor end with real estate or, by extension, facilities. Thus, the role of relationship manager needs to evolve into a value manager, who possesses the skills of business planning, business case development, and cross‐functional project management.

Until recently, occupiers have ignored the financial benefits real estate can add to the value of their firms. Corporate real estate (CRE) is now on the corporate agenda and CRE executives are being challenged by shareholders and senior management to employ best practice techniques to unlock the hidden value in the firm’s real estate portfolio. This paper offers a practical decision framework to allow this to happen and explores the potential for them and for real estate investors to capture this value. The paper is based on the author’s experience of advising occupiers and investors and his increasing knowledge of corporate finance principles.

The purpose of this paper is to investigate the impact of corporate real estate (CRE) ownership on value creation for non‐financial French listed companies.

Using a pool sample composed of SBF 250 companies over the period 1999‐2004, this paper investigates the association between economic value added (EVA) and market value added (MVA) as proxies for the value generated by French listed companies and the proportion of real estate in their asset portfolio.

The empirical results show that an increase in the proportion of real estate assets (over total assets) is negatively associated with EVA, but only for firms in service industries exhibiting low real estate intensity. The regression on MVA shows a negative association with the increase in the proportion of real estate for firms outside the service industries.

Recent trends show that many large companies have sold a significant portion of their CRE assets. The underlying motives for such behaviour are yet to be examined (at least for the French context). If real estate has any influence, an association should be observable between proxies of value creation and the change in the proportion of real estate assets, owned by a company. The results suggest that sales of CRE assets may be driven by value maximizing behaviour.

In order to maximize the value of their firm, managers should apparently take value creation into consideration in their decisions to invest in or dispose of real estate assets.

The paper suggests that in a French context, CRE disposals may generate value added in certain industries with specific CRE intensity.

Commercial real estate (CRE) is a major investment asset. Yet detailed information on the value of investible CRE in different cities is lacking. The authors propose an innovative method to measure the value of investible CRE using transaction datasets.

The authors take transaction prices and index them to produce a time series of values for each asset. The sum of the values at each point represents the value of investible CRE at that date. The authors’ method is applied to transaction data for New York, London and Toronto.

London had the highest proportions of institutional and foreign ownership, and its turnover was more resilient to the downturn in global CRE following the GFC. The results illustrate the potential of the authors’ method to shed light on the characteristics of investible CRE markets.

The authors use data from Real Capital Analytics (RCA). This provides good coverage of transactions for investible CRE in the cities that the authors examine, but data from other sources might lead to different estimates.

Measuring the value and turnover of investible CRE is important for portfolio strategies that account for the size and liquidity of investment markets. Knowledge of these features, and of ownership patterns, provides a better understanding of market operation.

The authors’ modification of the perpetual inventory technique is simple, novel and practical. The authors propose this approach given the absence of a building-by-building inventory of investible CRE in many markets.

The purpose of this study is to evaluate corporate real estate (CRE) performance measurement and how value can be added to the core business.

An analysis is made of the appropriate literature and primary research conducted via interviews with 11 senior professionals from three globally renowned companies, one global financial organisation and two corporate advisory firms.

The findings from this research provide evidence that CRE can be used to add value to the core business, both in the physical and behavioural environment. By aligning aims and objectives with the business, continually conducting portfolio analytics, encompassing size, cost, space, retention and productivity, value can be added, maximising shareholder worth.

The main conclusions drawn from this study are that CRE can add value to the business. The role of corporate real estate asset managers (CREAMs) needs to change from the physical environment to the behavioural environment, working to increase productivity, which can have greatest impact on shareholder value.

This paper provides evidence to suggest that CRE ’s role is not only to manage property but should be broadened to add value to the organisation by aligning CRE strategy with the corporate strategy. Closer interactions with human resource and information technology are required to enhance productivity, via relationship management, perhaps outsourcing to provide best in industry expertise. CREAMs can shape the future of office space, by demanding carbon neutral properties. This paper recommends that further research should be conducted on the measurement of intangibles, like productivity and corporate social responsibility, and how they can be used to add value and sustainable saves.

This study examines the influence of corporate real estate (CRE) on shareholder value using two value‐based measures: economic value added (EVA) and market value added (MVA). We find that CRE has impacted negatively on non‐real estate firms' EVA and MVA in the period 1997‐2001. This happens for the non‐real estate corporations from different industries. Further, the higher the real estate asset intensity, the greater the negative impact on the firms' EVA and MVA. Our results have important implications for the traditional notion that there is a competitive advantage in owning CRE by diversified conglomerates. Specifically, more studies are needed to explore and compare the main reasons and motivations as to why Asian non‐real estate firms are still more involved with real estate activities than their counterparts in Europe and USA even though ownership of CRE appears to destroy shareholders' wealth.

The purpose of this paper is to discuss three corporate real estate (CRE) perspectives (business, financial and capital market) as well as some potential issues, supported by key research studies and evidence drawn from listed retail companies in the USA, and European and Asian countries; as real estate has always been recognized as a key value driver in the retail industry.

A significant amount of capital is locked‐up in CRE by business firms, and so this paper analyzes the role of CRE from a combination of three perspectives: business, financial and capital market. These three CRE perspectives are discussed and some important issues reviewed, supported by key research studies and evidence drawn from listed retail companies in the USA and in European and Asian countries.

Arising from the review and perspectives offered in this paper, it is evident that performance measures are required to assess how CRE are being used and perceived by management and investors from the business, financial and capital market perspectives. This combined approach helps position the strategic role of the CRE in the context of “whole firm” that reflects the integration of trading and real estate activities.

With an effective CREAM system endorsed by top management, the CRE' s potential contribution and incremental performance can be factored into the financial plans of the “property‐rich” retail firms and appropriately reflected in corporate valuation.

This paper offers combined business, financial and capital market perspectives to assess the role of CRE in listed retail firms. Evidence and important issues in relation to the three perspectives are reviewed and evaluated.

As corporations change their way of working, the importance of corporate real estate (CRE) management has increased. Hence, there is a need to structure the existing knowledge and to identify the latest developments in CRE research. This paper aims to identify the major developments and changed paradigms in CRE research in 2005-2015.

A systematic literature review is conducted, including papers from seven journals. In three sequential scans, papers were identified for the final analysis, keeping 99 of 1,667 papers.

Based on nine identified developments, two paradigm shifts were found. The shift from cost minimisation to value delivery was identified. Besides solving current problems, value delivery aims to capture the future value and prevent future problems. The second paradigm shift is from buildings to people. Before the shift, buildings refer to value delivery as a transaction, while the shift to people highlights the aim to provide value-in-use.

This paper focusses on corporate offices, excluding retail, health care, education, publicly owned facilities, etc. This research is limited to CRE research. Therefore, the results are applicable to CRE research but do not cover the developments in practice.

For practitioners, this paper offers a possibility to develop their RE strategies by reflecting their current practices with the identified developments and paradigms in the CRE literature. This paper suggests to conduct a similar research in practice to compare the underlying paradigms.

This paper is based on a systematic literature study, and summarises developments in CRE research over the past 10 years.

To provide a roadmap for corporate real estate (CRE) directors to effect change in the way they deliver services through enhanced relationships with their “customers,” the users of CRE.

Previous studies and discussions of customer relationship management are combined with the authors' extensive experience to make a case for formalized change management processes and analyze specific methods for enhancing the effectiveness of these processes.

Relationship management integrates real estate processes into larger corporate processes, converting real estate opportunities into competitive advantages. The transition from a reactive to a proactive mode of service is aided by adoption of new mind sets and new skills sets, including tools and processes for communicating within the organization, enhanced financial/analytical acumen, and metrics for determining successful outcomes.

Every CRE department faces unique challenges and opportunities which cannot be fully addressed in a paper designed for broad applicability.

CRE directors will recognize the challenges and opportunities they face and will learn about specific actions and initiatives they can implement to enhance their effectiveness though internal customer relationship management.

Applicability of change and customer relationship management processes to the CRE environment is a new area of focus and is mostly uncharted territory. This roadmap delves deeper than previous papers into specific methods for aligning real estate processes with the “voice of the customer” to further corporate objectives.

The purpose of this paper is to identify and quantify the impact of corporate real estate (CRE) performance on shareholder value and its contribution to core business competitiveness.

The selected approach intended first to identify CRE performance in global industrial corporations by using a questionnaire, focussing on pharmaceutical companies. The results then were evaluated to classify the participating companies into CRE outperformers and CRE underperformers. Finally, the participants were compared based on three selected financial measures: share price performance, expense ratio and asset intensity.

Summarising the findings, no evidence could be found that companies outperforming in corporate real estate management (CREM) perform better in terms of share price performance. The same holds true for asset intensity where no difference is identified when comparing asset intensity between both groups. Looking at the expense ration per EUR sales, CRE outperformers perform better, indicating that CREM is able to manage and optimise cost.

The originality of this paper is the introduction of a questionnaire producing a single indicator to rate companies according to their CRE performance. Furthermore, it aims to quantify the impact of CRE performance on the firm combining qualitative and quantitative measures. Finally, it provides insight into CRE practices in global pharmaceutical companies.