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Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

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.

The Global dispersed corporate real estate operations and decision making processess of 26 international companies in six industry segments are compared. High standing CRE organisations, which are indicated by fewer levels between the CRE executive and CEO, frequent CRE meetings with senior management, a broad span of control for facility and real estate operations, and an executive committee for real estate matters, share common characteristics. High standing CRE organisations receive more strategic planning information, have more authority and power, and more formal policies and standards. Use of relationship management with business units also corresponds with better sharing of planning information. Some of the challenges faced today by firms carry large international real estate portfolios include: cultural issues, financing concerns, lack of local expertise/market knowledge, corruption in locales, and a lack of a standard/streamlined process.

This paper aims to examine the skill requirements for the practice of corporate real estate management (CREM) in Nigeria.

Questionnaires were distributed to 270 practising estate firms in Lagos State, Nigeria, 145 final year students of Estate Management in Obafemi Awolowo University, Ile Ife, Nigeria as well as corporate real executive officers of the 24 recapitalised commercial banks, 21 insurance and five GSM communication companies in Nigeria. A total of 260 questionnaires (58 per cent) were returned and found useful for the study. The study adopted the descriptive method of percentages, mean and proportion method for analysis.

The study found that in rank order, the skill requirements for CREM were financial performance skill, investment in corporate strategy, productivity skill, space efficiency management skill and customers and employees' management skill. The mean figures for the five factors are 5.0, 4.8, 4.8, 4.73 and 4.67 respectively. The results of the analysis also showed further that the portfolio efficiency skill had a mean value of 3.58 and was rated by the respondents as the least skill required for corporate real estate management.

Limiting the scope of the study to CRE executives and practitioners in selected service industry and students of a university might pose a great challenge to the representativeness of the findings.

The study has major implications on real estate education and practice in Nigeria. There is an urgent need to overhaul the university/polytechnic curriculum to incorporate business and accounting knowledge to prepare real estate graduates for efficient practice and the continuous re‐training of practitioners to prevent future declining real estate profession.

The negative implication of joblessness arising from unemployable graduates of real estate by corporate organisations breeds more social vices.

The paper documents the requisite information needed for developing contemporary policy on real estate education in the country. It also serves as a guide for real estate practitioners and regulatory bodies for developing contemporary real estate practice to meet emerging trends in CREM practice and for relevance in the practice of CREM as an evolving sub‐discipline of estate management.

Nowadays, the so‐called management by objectives (MBO) is used as a management instrument of corporate real estate management (CREM), using cost targets as the yardstick of CREM success. In Switzerland, CREM success is increasingly linked to cost reductions, with the cross‐company corporate strategy often requiring CREM to deliver a significant reduction in the level of cost. The cost concept used is material for the agreement or stipulation of cost targets. As the presented analysis shows, CREM has, for the most part, only very limited potential impact on costs. In particular, the use of the occupancy cost concept (sum of all imputed costs as well as costs recognised in the profit and loss account) poses a problem. This comprehensive cost type is determined by the following factors, which are in many cases outside the control of CREM: Book value as per balance sheet; Depreciation period of the basic shell structure; Main objective of the owner; Maintenance strategies; Degree of outsourcing of infrastructure management. Therefore, where the corporate strategy centres around cost reduction, CREM must be given the opportunity to control these drivers. This would require the inclusion of CREM in the development of the cross‐company corporate strategy, as otherwise the cost targets would have to be restricted to individual cost types (costs recognised in the profit and loss account). This is the only way to utilise a management instrument, such as MBO, within CREM.

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.

Regarding the immense real estate divestitures that have taken place over the last couple of years, some stakeholders have begun to wonder if these short‐term activities may affect the long‐term competitive advantage of a company. While it appears reasonable that property divestitures enhance the financial situation of a company from a so‐called owner perspective, there is no equivalent quantitative evaluation for the loss in space utilisation and flexibility from a user perspective. Consequently, real estate decision making is based upon an insufficient information basis and is dominated by the investment perspective. In order to better align corporate real estate and real estate investment functions better, this paper introduces a formal decision model which describes the situation of corporate real estate decision makers. They have to trade off entrepreneurial flexibility gained by real estate holdings against the financial opportunity cost of freeing up capital. Making use of a prototype decision situation, the paper demonstrates how the decision maker can improve the underlying information basis for property divestment decisions, using a real option approach. Hence, real estate decisions gain in two respects: they are more transparent and, more importantly, their design is more suitable if the company wants to employ real estate holdings to increase the overall value of the company.

Up to the 1980s the corporate competitive advantage was primarily focused on adapting the corporation to the (changing) environment. In the last decades corporations have become more aware of their resources and capabilities, and of the benefits of managerial attention towards managing the corporate assets. The transition from a passive, reactive attitude towards a proactive service oriented organisation proves to be a difficult task. This paper analyses the transition and describes an effort to identify products and services contributing to the added value of corporate real estate management to the bottom line of the corporation.

This paper aims to evaluate the strategies adopted by Nigerian banks to integrate the management of their real estate assets into the overall business objectives.

Questionnaires were distributed to the corporate real estate managers of the 24 recapitalised banks in the country and supplemented with interview. The study adopted the descriptive method of percentages, mean and proportion methods for analysis.

The study found that Nigerian banks have distinct real estate units that manage their substantial real estate holdings, which they revalue at the open market basis every six months. The study also found that in spite of the fact that Nigerian banks have substantial real estate holdings, employees of the real estate unit spend more time on the core business of the organisations than on real estate activities. While some of them have sole responsibility for real estate activities, others are gradually shifting attention to the importance of their real estate assets.

The study has major implications on corporate real estate management and banking practice in Nigeria. There is the need for organisations to re‐direct their focus towards the strategic perspective of CRE as an important and profit inducing tool of business. This may require exposing CRE executives to requisite training that will equip them for effective service delivery.

Inefficient real estate management can result in huge loss of shareholders fund by investors and subsequently affect the economy.

The study identified real estate as a “turn around” tool that can be adopted by bank executives to improve their financial status and a pro active step towards building an efficient and virile profession to handle the emerging corporate real estate management sub discipline in real estate.

The outsourcing of non‐core business activities has recently mushroomed throughout the world as organisations seek reduced cost and strategic business advantage in an increasingly competitive marketplace. A component of this overall trend has been a dramatic increase in the extent to which real estate asset management functions of non‐property investment organisations have been taken over by ‘external service providers’. This study is the first in New Zealand to examine current practice and emergent trends and to identify outsourcing issues and problems in detail. Via a survey of 457 organisations, the reasons behind the trend to outsourcing are identified, as are the types of services outsourced; the basis of selection of service providers; the skills and attributes required of real estate professionals; and the success or otherwise of outsourcing experiences.