Search results

The purpose of this research paper is to provide corporate real estate executives with a measurement tool for pinpointing and enhancing the contribution of corporate real estate to corporate strategy.

A measurement tool is designed by adopting a theoretical framework in which seven added values of real estate are aligned with nine corporate strategic driving forces. The practical applicability of this tool is validated by assessing the contribution of corporate real estate to corporate strategy at 14 Dutch‐based global corporations.

Many corporations still lack sufficient insight into the impact of corporate real estate decisions on corporate performance. Therefore, it is difficult for senior management and other stakeholders to grasp the actual contribution of corporate real estate.

Future research may be conducted to investigate the exhaustiveness of the listed real estate issues. Moreover, the linkage between the added values and the strategic driving forces could be validated further in practice.

The measurement tool supports corporate real estate executives in aligning corporate real estate with corporate strategy. Thereby it contributes to the further recognition of the importance of real estate in a corporate setting.

Prior papers on the contribution of corporate real estate to corporate strategy have primarily been focused on either pinpointing various driving forces or linking specific property decisions to corporate strategy. This paper, however, unveils the linkage between fundamental drivers of corporate real estate and corporate strategy in a comprehensive management tool for portfolio analysis and strategy formulation.

Managing corporate real estate is confronted with more problems than just the changing characteristics of real estate. While operating companies strive for more autonomy, corporate headquarters are increasingly struggling for a synergetic approach to corporate resources and capabilities. The authors argue that the impact of the corporate setting on the role and position of corporate real estate management is underestimated. This paper describes the effects of transisions in corporate structure and strategies and provides insight in a new perspective on managing corporate real estate.

The purpose of this paper is to model how real estate strategies can add value to the core business, providing corporate real estate mangers with a tool to illustrate to corporate officers how real estate adds value to the firms.

The authors review previous research and interview 26 corporate real estate executives to examine what are common approaches to developing real estate strategies and measuring performance. They then model how real estate adds value to the firm and how that value can be measured.

Many firms do not recognize how real estate adds value to the business. While they may have a corporate real estate strategy, that strategy is often not developed in coordination with the overall business strategy. In addition, the performance measures being used by many companies focus solely on cost, not value added.

Corporate real estate's contribution to the core goal of wealth maximization can be modeled to illustrate the tangible and intangible effects real estate has financial performance. A structured approach to developing a real estate strategy in conjunction with the core business strategy, supported by a performance measurement system will allow corporate real estate executives to better communicate how corporate real estate is adding value to the firm.

Corporate real estate managers need better ways to illustrate, to corporate leaders, how they add value. This paper illustrates such a model with supporting operating decisions and performance measures.

Real estate is an inherently inflexible asset, yet corporate real estate managers increasingly need to find ways in which flexibility can be achieved. Shorter planning horizons, increasing corporate experimentation and growth through mergers and acquisition are but a few of the influences which have led to the need for more flexible resources. One way in which corporate real estate managers can gain a greater insight into the problem is by recognising that real estate is often considered from a variety of perspectives: as a physical, functional and financial asset. Each of these perspectives leads to a different source of flexibility. As a physical asset, corporate real estate managers are concerned with aspects of design, including floorplate sizes, column placement and building services. As a functional asset, corporate real estate managers consider what activities can actually be undertaken inside a building. As a financial asset, corporate real estate managers examine the terms of contracts and the ability (and cost) to terminate those obligations. Each of these types of flexibility is required, but at different times and for different purposes within the life cycle of an organisation. Possibly the most appropriate way to look at the issue is on a portfolio‐wide basis, considering what are an organisation’s core and periphery real estate requirements. This approach requires a different type of examination of the assets but can provide a corporate real estate manager with a firm base for working towards the elusive goal of flexible real estate.

The corporate real estate provider community is freely using the term business process outsourcing, or ‘BPO’ to differentiate its value propositions. Yet most buyers and sellers have yet to articulate clearly the concept as it pertains to corporate real estate ‐ the value proposition, economic structure, focus and impediments to adoption. This paper defines BPO as it relates to corporate real estate and suggests conditions that must be in place for its adoption.

The Corporate Real Estate Portfolio Alliance performed extensive research into corporate real estate portfolio management and developed a number of new practices and analytical methods. A number of papers in this issue of the Journal of Corporate Real Estate resulted from the research. This paper provides an overview of the corporate real estate organisations and researchers involved, the research methodology and its findings.

The purpose of this paper is to investigate how organisations use a corporate real estate strategy to support their competitive strategy. It provides a theoretical and empirical overview and analysis of effective combinations of firms' real estate and competitive strategies.

The paper constructs a model that integrates three real estate strategies and three types of competitive strategies. Case studies in ten multinational firms in The Netherlands apply the model, and describe and analyse the combinations of the firms' real estate – and competitive strategies.

A standardisation real estate strategy supports all three competitive strategies: lowest costs, differentiation, and focus. A value‐based real estate strategy supports a competitive strategy of differentiation and differentiation‐focus, and does not contribute to a competitive strategy of lowest costs, or lowest costs‐focus. Finally, an incremental real estate strategy is ambiguous, and does not support any of the three competitive strategies.

The paper constructs a literature‐based model that combines real estate strategy and competitive strategy. It applies the model in a study of ten cases. Practitioners can use the model to analyse and reconsider the combination of their organisation's real estate strategy and competitive strategy. Academics can use the qualitative research results to design further research that qualifies and quantifies the relationship between various elements of real estate – and competitive strategy.

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

Although often regarded as mere bricks and mortar, real estate often plays an important role in supporting corporate growth and even survival. Parallel to the rapid growth and evolution of (multinational) corporations, real estate portfolios expanded. In order to manage these portfolios, corporations established special staff and supporting departments in order to take care of these assets. Based on the results of case studies, this paper provides an analysis. In addition to a mere historical overview the outcomes of the study also provide lessons for corporations currently facing a similar path of growth. This article builds on a previous contribution and presents an in‐depth analysis of the evolution of (corporate) real estate departments related to changes in the corporate setting. In addition to a mere historical overview the outcomes of this contribution provide lessons as well for today’s managers facing similar paths of growth.

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.