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Conventionally, between 5 and 20 per cent of a portfolio is invested in real estate. Whether this is prudent diversification or not depends on whether property and other financial assets markets are integrated. The notion of market integration/segmentation across the economy is of central importance. Disturbances in market fundamentals in a given market generate movements of capital into and out of the affected market. If various markets are well integrated, then it is expected that a high degree of asset substitution will take place, such substitution having a significant impact on price fluctuations in the relevant market. On the other hand, if markets are not integrated, then this has significant implications for portfolio investment where managers seek to develop well‐diversified portfolios as a means of risk reduction. Recent literature has recognized the need to understand and measure the degree of market integration, and research has focused on techniques to do this. Studies have attempted to measure the degree of integration in money and bond markets, real assets markets and among international real estate investment trusts. Uses cointegration techniques to examine the extent to which physical real estate markets and financial assets markets are integrated. Tends to support the notion of market segmentation and, by default, supports the conventional wisdom of diversification between real estate and other financial assets.

The paper examined the long-run relationship between real estate equity (property listed stock) and non-real estate equity (common stock) in the Nigerian capital market and established the integration between the investments. The paper aims to discuss these issues.

The data collected comprised quarterly returns on property listed stock and All Share Index for the period of January 1999-December 2011. The calculated quarterly returns of the investments were subjected to the Philip-Person unit root test after which the integration between the investments was analysed using the Johansson integration test.

The results showed that real estate equity performed better the non-real estate equity but with corresponding higher risk level. Also, real estate equity had a slightly lower performance when compared with non-real estate equity on return/risk ratio basis. The findings showed that property listed stock (real estate equity) was integrated with common stock or non-real estate equity and suggest that the Nigerian listed property stock, by nature, was similar to REITs. This result negates the belief that property listed stock's returns are integrated with direct real estate market and are often influenced by the returns of the underlying direct real estate assets.

The paper implied that while investors could consider investing in real estate equity and earn better return than investing in common equity in the Nigerian capital market, the inclusion of both in a domestic portfolio could be expected to bring little or no diversification benefit.

The paper is one of the few attempts at assessing the long-run relationship between property listed stock as a form of real estate equity and non-real estate equity and especially from African emerging market perspective.

In their recent client engagement experience and benchmarking research, the authors have found that successful management models for corporate real estate (CRE) organisations begin with integrated, robust processes, and not well designed organisational charts. As corporate missions can quickly change focus from high growth to cost reduction, the key to successful integration of all CRE elements is engaging in a strategic planning process that not only aligns the facilities infrastructure with the core business, but also drives CRE organisational initiatives relative to processes, people and enabling systems. This paper attempts to capture a practical framework for CRE managers to evaluate changes to the core business and determine what implications these changes will have on both the CRE portfolio and organisation.

Led by the rapid advancement of information technology in engineering, business and creative industries, the emergence of new technology such as virtual reality (VR) and its use in education and practices are clearly observed. Although widely spread in industry practices, technology-led innovation is applied rather slowly in the tertiary real estate education. This paper examines the integrative effect of VR technology in a real estate course.

This study adopts a case study approach. Using an experimental course design and delivery in a business school real estate programme from Hong Kong, this paper shows the design, development and implementation of an innovative teaching model with VR being integrated. A survey was conducted to gain feedback information from participating students towards teaching innovation. It identifies the role and values of adopting VR technology in real estate education as pedagogical tool.

A new teaching model integrated with VR technology to deliver a real estate course has demonstrated its ability and potential to assist the development and enhancement of student's sense of value and place, as well as improving communicative efficiency of property investigation and the analysis of trade process. Findings from the study have implications for future global real estate industry practice and education.

The critical role of information technology to revolutionise the global economy and its real estate sector is apparent. Few studies have inquired about attempts and experience of integrating VR technology in real estate education towards direct link to industry practice. This paper is a major attempt to bring attention to this important concern.

The purpose of this paper is to empirically examine the issue of convergence in the monthly returns, rental growth and yields for ten market segments in the UK direct real estate market, using monthly data over the period from January 1987 to December 2014.

The methodology used to determine convergence is principal component analysis as it provides an assessment of the extent to which the variance of the market segments can be represented by a single common factor, explaining their long-run behaviour, and the degree of independence between the market segments.

The results suggest that there is strong evidence of convergence over the entire sample period in relation to monthly returns and yields but less evidence of convergence in rental growth, which confirms the findings in previous studies in international markets.

The evidence also suggests that convergence has increased over the sample period and that convergence is period specific and was particularly strong during and after the period of the Global Financial Crisis, which implies that the UK direct real estate market is largely integrated and as a consequence the extent of diversification potential in the market is still severely limited.

The convergence in returns has crucial implications for investors as it leaves investors exposed to the same structural shocks and so magnifies the importance of volatility spillover effects, limits their ability to create well-diversified portfolios and make it more difficult for fund managers to outperform the market.

This is the first paper to examine the convergence in the UK direct real estate market.

The focus of the research was to provide a business perspective to the role of real estate assets in supporting the fulfilment of corporate business plans. Based on a comprehensive survey of published literature and a series of in‐depth interviews of corporate real estate/facilities managers, an integrating resource management framework was developed to model the nature of interactions between strategic business planning and operational asset management in an organisational setting. The study supports the view that research efforts aimed at improving management effectiveness of the operational real estate asset base must be channelled to provide frameworks or models that promote understanding to all parties involved in the process, from a knowledge base that aims to define better: the operational requirements of core business(es); the key real estate and facilities service attributes; and options evaluation to meet dynamic changes.

The purpose of this paper is to examine the contribution of real estate to the performance of mixed-asset portfolio of Nigeria Pension Fund with a view to providing a guide on investment decision making for institutional investors and portfolio managers.

Data on capital value were collected from the quarterly and annual reports of Nigeria Pension Commission over a period of ten (2007–2016) years, and the data were analyzed using descriptive statistics.

The findings show that there is diversification benefit resulting from integrating real estate to other assets of the Nigeria Pension Fund, and that the fund’s portfolio performed better when real estate is integrated in the mixed-asset portfolio.

Investment portfolio managers can benefit from the findings of this study by making investment decisions that are performance-driven. The study will serve as a guide in making investment decisions on mixed-asset portfolio of institutional investors other than pension funds.

There is no known paper on the contribution of real estate in the performance of asset portfolio of the Nigeria Pension Fund.

This study aims to empirically examine the relationship between real estate and stock market of Pakistan.

The data of two real estate indices (house price index and plot price index) are taken for the Pakistan and its four big cities, i.e. Lahore, Karachi, Rawalpindi and Islamabad. It estimates the integration between series by applying the Johansen cointegration test. Moreover, the vector error correction model is applied to examine the short and long-run causal relationships between series.

The findings show that the real estate markets are cointegrated with the stock market. They imply that the real estate and stock markets are good substitutes in investment allocation, but investors cannot get the benefit of diversification by making a portfolio of real estate and stock markets in Pakistan. Moreover, the long-run causality is observed from majority house markets to the stock market, whereas short-run causality is evident from majority plot markets to the stock market. Hence, the real estate market leads the stock market in the short run and long run, suggesting the credit-price effect in the majority of real estate markets in Pakistan. These causality results are helpful for investors in the forecasting of real estate and stock markets in Pakistan.

The limitation of the study is the lower number of observations (107), because house and land prices are only available in monthly frequency from January 2011 in Pakistan.

To the best of the authors’ knowledge, no researcher has investigated the real estate and stock market nexus in Pakistan. Therefore, this study focuses on examining the relationship between the real estate and stock market of Pakistan. The link between real estate and stock markets will provide useful insights to the portfolio managers, real estate companies, property agents, stockbrokers and investors.

As large organisations grow and evolve, they face the challenge of accommodating change in a manner that contains costs while strengthening the firm’s competitive position in the marketplace. Invariably, not only initial capital and long‐term operating costs, but the effect of the real estate decision on the firm’s ability to attract and retain staff, and their ability to work productively, must be considered. To compound an already complex decision, the factors influencing such decisions are often highly uncertain and there are limited data on the impact of such decisions on human resource factors. Yet such decisions must be and are made. This paper describes the Cornell Balanced Real Estate Assessment model (COBRA©), a prototype tool which addresses these issues.

To identify and prioritise real estate management requirements, Accruent recently surveyed 100 real estate executives, more than half at companies with revenues exceeding US$1bn. The results indicate that the vast majority are looking for better ways to manage their real estate portfolios. Pressured by fast growth and stringent new regulatory reporting requirements, real estate professionals are turning in increasing numbers to centralised systems of record that can track and manage all financial transactions. Until recently, these systems were difficult to justify. Manual processes and spreadsheets were considered sufficient and a ‘just pay it’ mentality prevailed, largely because real estate was considered a fixed cost. While the concept of a centralised enterprise‐wide data repository has long been a topic of discussion among visionaries, new technologies are making the vision a practical reality. It is now possible to implement viable systems of record in cost‐effective stages, beginning with lease administration and extending into other business management systems. Though the effort of implementing systems of record can be considerable, many consider it well worth while because it provides companies with the opportunity to improve existing operational processes significantly.