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A firm’s real estate exposure can have a pronounced effect on the way investors value the enterprise in its entirety. Most of the literature of corporate real estate is mute on the topic of firm valuation and the influence of real estate thereon. When the literature does address the topic of finance, it typically discusses the various schemes available for the capitalisation of real estate, but does not address this in the larger context of firm capitalisation and value. The purpose of this paper is to raise the issue of how real estate’s presence on the balance sheet may influence investors’ views of firm value. We look at a few simple measures and propose a rationale for understanding the effect of real estate on valuation.

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.