Corporate real estate and green building: prevalence, transparency and drivers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas Julian Richter ◽  
Eveline Soliva ◽  
Matthias Haase ◽  
Isabelle Wrase
Keyword(s):  
Real Estate ◽  
Green Building ◽  
Firm Characteristics ◽  
Content Type ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Building Activities ◽  
Real Estate Management ◽  
Corporate Real Estate Management ◽  
Industry Sectors

Purpose Green building is a megatrend in corporate real estate management. This paper aims to document the prevalence of green building reporting in public firms, assess how well firms apply good practices of green building and show which firms, countries and industry sectors are particularly advanced in the application of green building technologies. Design/methodology/approach The study uses data on green building reporting, green building scores and firm characteristics of 1,281 publicly traded firms from different industries in Organisation for Economic Co-operation and Development countries over a 5-year period. Regression analysis is used to relate the adoption of green building reporting and excellence in green building to firm characteristics. Findings The results indicate that there is a huge variation in green building activities and reporting in corporate real estate management across countries and industries. The study finds that firms in the financial and health-care sectors are leading in green building reporting. Environmental, social and corporate governance-oriented, profitable and large firms receive the highest green building scores. Research limitations/implications The results in this paper rely on the reported but not inevitably monitored green building activities. There may also be companies that use green building technologies but do not report on them. The conclusions are largely based on correlations and do not allow for causal statements (endogenous variables). Practical implications The results in this paper are crucial for practitioners in corporate real estate to benchmark their green building activities and reporting. Additionally, the paper sheds light on how information on green building is propagated in the financial market. Originality/value The paper looks at the drivers and barriers of green building for 25 countries and across all industry sectors (1,281 firms). In contrast to that most of the existing literature focuses on single countries and limits the analysis to companies in the real estate and construction industry. Additionally, the paper has a joint focus on publicly available green building reporting and green building scores.

scholarly journals Managing the workplace in a globalized world

Facilities ◽  
2014 ◽  
Vol 32 (13/14) ◽  
pp. 744-760 ◽  
Author(s):  
Evelien B. Plijter ◽  
Theo J.M. van der Voordt ◽  
Roberto Rocco
Keyword(s):  
Real Estate ◽  
Case Studies ◽  
National Culture ◽  
Cultural Dimensions ◽  
National Cultures ◽  
Content Type ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Real Estate Management ◽  
Corporate Real Estate Management

Purpose – The purpose of this study is to provide a better insight into the role of national cultures on the management and design of workplaces of multinationals in different countries. Design/methodology/approach – This explorative study is based on an extensive literature review of dimensions of a national culture in connection to corporate real estate management, interviews with ten representatives of multinationals on corporate real estate strategies and workplace characteristics and a multiple case study of two multinational firms with site visits and observations at offices in The Netherlands, Germany and Great Britain. Findings – Whereas all interviewed companies had their real estate portfolio to some extent aligned to the local national culture, none had a strict central policy about this issue. Differences in workplace characteristics were mainly caused by the involvement of local people in workplace design. Using Hofstede’s cultural dimensions, the case studies showed relationships between masculinity of a culture and the expression of status and between uncertainty avoidance and openness to innovation; however, no relationships were found related to differences in power distance and short-/long-term orientation. Research limitations/implications – The case studies were conducted in three European Union countries. Due to practical reasons, most interviewees were Dutch. Additional empirical research including more different national cultures is needed to advance more unequivocal conclusions and to develop a clear set of guidelines for decision-making. Practical implications – The findings stress the importance of finding a balance between aligning facilities to business purposes and meeting the needs of different (groups of) employees in multinational environments. Originality/value – Although much has been written about national culture, not much research is yet available in connection to facilities management and corporate real estate management.

scholarly journals Corporate real estate management and companies’ success: empirical evidence for a conceptual framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andreas Pfnuer ◽  
Julian Seger ◽  
Rianne Appel-Meulenbroek
Keyword(s):  
Real Estate ◽  
Multidimensional Data ◽  
Business Success ◽  
Content Type ◽  
Corporate Real Estate ◽  
Data Scaling ◽  
Holistic Concept ◽  
Estate Management ◽  
Real Estate Management ◽  
Corporate Real Estate Management

Purpose The purpose of this study is to explain the contribution of Corporate Real Estate Management (CREM) to corporate success and to substantiate it empirically. However, no empirically tested holistic concept classifies and explains the different success contributions of CREM in their mechanisms of action and organisational levels. Design/methodology/approach This study develops a holistic two-dimensional model from existing literature to explain the relationship between CREM decisions and business success, and then tests it empirically using multidimensional data scaling from a telephone company survey (CATI) of 59 CREM managers sampled from the 200 largest German companies. Findings The created theoretical model holistically explains CREM success and existence as part of a non-property company, with specific performance drivers on specific organisational levels. The empirical data confirm that both dimensions of the model and, thus the measurement concept for modelling the CREM contribution to business success is robust across sectors and company/portfolio size in Germany. Originality/value The empirical confirmation of the conceptual model of CREM success provides novel support for the institutionalisation of the CREM function in companies and the holistic classification of different CREM research directions.

New organisations and new workplaces

2016 ◽  
Vol 18 (1) ◽  
pp. 4-16 ◽  
Author(s):  
Rob Harris
Keyword(s):  
Real Estate ◽  
Building Design ◽  
Practical Experience ◽  
Content Type ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Long Term Impact ◽  
Real Estate Management ◽  
Corporate Real Estate Management ◽  
Practical Implications

Purpose The purpose of this paper is to outline key changes occurring within office occupier businesses that will have a medium- to long-term impact upon the nature and design of the office workplace, and the implications for the corporate real estate manager. Design/methodology/approach The paper is based upon research involving detailed consultations with corporate occupiers in the City of London, as well as representatives of the property supply chain. This has been developed here to include practical experience and to relate the lessons of the work directly to corporate real estate management. Findings The findings suggest major changes are taking place in the demand profile of office occupiers, in terms of both quantitative and qualitative demand for space. There are a number of practical implications arising from the findings, not least the need for investors to consider the appropriateness of current standards for base building design and fit-out in contemporary offices, and the need for corporate real estate management to adapt. Practical implications The paper contains a number of implications arising from the changing workplace for the corporate real estate management profession. Originality/value The paper reflects direct practical experience and the output of primary research and consulting. It is also highly relevant: while much has been written about agile working, much less has covered the practical implications for building design and corporate real estate management.

Strategic corporate real estate management practice in Ghana

2019 ◽  
Vol 37 (3) ◽  
pp. 432-449
Author(s):  
Naana Amakie Boakye-Agyeman ◽  
John Tiah Bugri
Keyword(s):  
Real Estate ◽  
Tertiary Education ◽  
Management Practice ◽  
Current Status ◽  
Content Type ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Physical Assets ◽  
Real Estate Management ◽  
Corporate Real Estate Management

Purpose The success of every business depends to a large extent on its corporate real estate (CRE), given that, it is the physical assets that support its operations. To achieve this success, organizations must adopt a strategic approach to CRE management. The purpose of this paper is to examine the extent of adoption of strategic corporate real estate management (SCREM) practice in Ghana based on the views of CRE managers. Design/methodology/approach The embedded mixed method approach was adopted for the study. In total, 72 CRE managers were selected from 35 institutions in 5 sectors (tertiary education, health, banking, security and service industry) where real estate is a requirement for accreditation using a multi-stage sampling technique. Findings An analysis of the existing practices underpinning SCREM in Ghana showed that SCREM has not been adopted completely in Ghanaian institutions. No organization has a complete systematic structure in place for SCREM as the practice is evolving. This finding correlates the global trend that CRE is not strategically managed like other corporate resources. Practical implications Current SCREM practices in Ghana, as divulged by this research, provide useful insight into the current status quo of SCREM and what must be done to ensure that CRE achieves its attribute of value adding. Originality/value The paper outlines the elements of SCREM practice, adding to the limited literature on the practice in Ghana and worldwide. It also sets the stage for further research in SCREM practice and CRE performance.

Modelling sustainability maturity in corporate real estate management

2014 ◽  
Vol 16 (2) ◽  
pp. 126-139 ◽  
Author(s):  
Rasita Masalskyte ◽  
Mia Andelin ◽  
Anna-Liisa Sarasoja ◽  
Tomi Ventovuori
Keyword(s):  
Real Estate ◽  
Research Process ◽  
Maturity Model ◽  
Theory Approach ◽  
Content Type ◽  
Holistic Understanding ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Real Estate Management ◽  
Corporate Real Estate Management

Purpose – Sustainability in corporate real estate management (CREM) has been lately recognized as an integral part of almost every business. However, its perception might extremely differ in various industries. Sustainable CREM practices have been extensively analyzed in recent studies, yet real estate is an ambiguous field and the practices still lack holistic understanding. This research aimed to summarize and systematize the present sustainable CREM practices and propose a generic sustainability maturity model for CREM. Design/methodology/approach – The research process was implemented in accordance with the grounded theory approach. Research data were collected in semi-structured interviews with major Finnish companies, recognized for their environmental work. The scope of the research was nine interviews. Findings – The result of this research is the generic sustainability maturity model for CREM. It consists of 18 most typical sustainable CREM practices at the companies interviewed. The model demonstrates the value of implementing sustainable CREM. Originality/value – Sustainability maturity model for CREM is an indicative tool for sustainability maturity assessment in CREM. The model demonstrates how CREM contributes to company's sustainability and provides a holistic approach towards the existing sustainable CREM practices. Additional practical implications of the model include sustainable CREM benchmarking and communication with stakeholders.

scholarly journals Facilities management and corporate real estate management: FM/CREM or FREM?

2017 ◽  
Vol 15 (3) ◽  
pp. 244-261 ◽  
Author(s):  
Theo van der Voordt
Keyword(s):  
Real Estate ◽  
Business Processes ◽  
Integrated Approach ◽  
Facilities Management ◽  
Content Type ◽  
Corporate Real Estate ◽  
Key Issues ◽  
Estate Management ◽  
Real Estate Management ◽  
Corporate Real Estate Management

Purpose This paper aims to explore similarities and dissimilarities between facilities management (FM) and corporate real estate management (CREM) regarding its history and key issues, and whether the similarities may result in a further integration of FM and CREM. Design/methodology/approach The paper is based on a review of FM and CREM literature, seven interviews with experienced academics and consultants and the long experience of the author as a researcher and teacher in accommodating people and activities. Findings Both FM and CREM aim to support primary business processes by aligning the physical resources of organisations to the organisational strategies in order to contribute to organisational performance and to add value to the organisation. Efficiently and effectively supporting the primary activities and business purposes are key issues. Dissimilarities consider the focus on facilities and services (FM) versus that on buildings and real-estate portfolios (CREM), as well as a shorter time frame and high flexibility of facilities (FM) versus a long life cycle and rather static buildings (CREM). In spite of the differences, it is expected that both disciplines will be more integrated in the future. Research limitations/implications The selection of key topics and key publications may be biased by the personal knowledge and European perspective of the author and the input from seven expert interviews. Practical implications The common body of knowledge of FM and CREM may be used to improve both professions and disciplines and may result in a more integrated approach of facilities and real estate management (FREM). Originality/value This paper combines insights from two related disciplines with different histories and focus points, and explores what they have in common and can learn from each other.

Challenges of strategic corporate real estate management in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naana Amakie Boakye-Agyeman ◽  
John Tiah Bugri ◽  
Frank Gyamfi-Yeboah
Keyword(s):  
Real Estate ◽  
Organizational Performance ◽  
Resistance To Change ◽  
Physical Space ◽  
Sampling Technique ◽  
Content Type ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Real Estate Management ◽  
Corporate Real Estate Management

PurposeResearch shows that strategic corporate real estate management (SCREM) practice contributes to organizational performance. However, globally, SCREM practice is hindered by numerous challenges especially in developing countries such as Ghana. This study examines the challenges of SCREM practice in Ghana from business and corporate real estate managers’ perspectives.Design/methodology/approachA mixed-method design was adopted for the study. The largely quantitative study was supported with qualitative data. The multi-stage sampling technique was used to select respondents from 35 institutions in five sectors. The relative importance index, consensus/agreement framework and Mann–Whitney U test were used for analysis.FindingsAnalysis revealed that there is latent resistance to the provision of CRE policy, adequate authority and resources as well as resistance to change in organizational culture for the adoption of SCREM practice. The CRE management function is thus not well integrated into corporate activities. It is seen as a non-core organizational function merely providing physical space and support services.Practical implicationsThe research has identified the challenges of SCREM and how these could be addressed to ensure that CRE is managed strategically to contribute effectively to organizational performance.Originality/valueThe paper is the first to identify the challenges of SCREM practice from business and CRE managers’ perspective in five sectors in Ghana, thus contributing to the limited literature on the subject globally.

Towards phronetic knowledge for strategic planning in corporate real estate management

2014 ◽  
Vol 16 (3) ◽  
pp. 203-219 ◽  
Author(s):  
Maartje van Reedt Dortland ◽  
Hans Voordijk ◽  
Geert Dewulf
Keyword(s):  
Real Estate ◽  
Real Options ◽  
Case Studies ◽  
Real Option ◽  
Content Type ◽  
The Real ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Real Estate Management ◽  
Corporate Real Estate Management

Purpose – The objective of this paper is to provide insights about the potential of real option thinking for corporate real estate management (CREM) from the owner-user perspective. A promising approach to classifying and evaluating flexibility in real estate is the real options approach. Most literature on real options look from an investor perspective. Design/methodology/approach – First, a review on real option thinking in the real estate and large engineering projects literature is provided using Flyvbjerg’s (2001) typology of knowledge systems. Next, the effects of exercising real options for various stakeholders in CREM is analysed in two case studies. Findings – The literature review shows that little research has been done on conditions and values needed to make real options applicable in the CREM practice of the owner-user of real estate. The case studies show that real options are more valuable to one stakeholder than to another. Practical implications – Based on the knowledge on conditions for and the consequences of exercising real options for various stakeholders, insight can be gained into the applicability of real options to the owner-user of real estate and how real options reasoning fits within this practice. A phronetic type of knowledge is needed that incorporates stakeholders’ interests. Originality/value – Creating phronetic knowledge would allow understanding why and how real options are used, or could be used in the future, and heuristics could be developed. In this way, real estate management should become more resilient to changes.

Lease accounting trouble looms for corporate real estate management

2014 ◽  
Vol 16 (3) ◽  
pp. 182-202 ◽  
Author(s):  
Sjuul Baltussen ◽  
Tim Schelle ◽  
Rianne Appel-Meulenbroek ◽  
Berend van Egmond ◽  
Matthijs Hesselink ◽  
...  
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Content Type ◽  
Corporate Real Estate ◽  
Estate Management ◽  
Real Estate Management ◽  
Corporate Real Estate Management ◽  
Accounting Changes ◽  
The Impact ◽  
Lease Accounting

Purpose – The purpose of this paper is to investigate what impact International Financial Reporting Standards (IFRS) lease accounting changes might have on corporate real estate (CRE) strategies, and what the consequences for future corporate real estate portfolio decisions might be. Design/methodology/approach – A macro-analysis based on the constructive capitalization method of Imhoff et al. (1991) is used to determine the potential impact of IFRS lease accounting changes on Amsterdam Exchange Index (AEX) listed corporations. In addition, a series of interviews were held with CRE executives to discuss this impact and with CRE and IFRS experts for general insight. Findings – The impact of IFRS lease accounting seems less severe than expected. Notwithstanding, it could form a serious bottleneck for CRE departments that do not operate on a strategic level. Therefore, IFRS lease accounting changes might act as a catalyst for the professionalization of corporate real estate management departments. Practical implications – The paper provides CRE managers with a manageable insight to alter CRE decision-making processes in relation to IFRS lease accounting. The sample size was too small to make a distinction between different industries. Originality/value – Past research showed that accounting is a potential variable in CRE decision-making, but did not yet clarify the possible impact of IFRS lease accounting on CRE strategies and the relating CRE operating decisions. Besides that, this paper also provides insight for options to cope with the (possibly severe) implications.

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