scholarly journals Corporate real estate risks

2015 ◽  
Vol 17 (4) ◽  
pp. 301-322 ◽  
Author(s):  
Ruben Bartelink ◽  
Rianne Appel-Meulenbroek ◽  
Pauline van den Berg ◽  
Ellen Gehner
Keyword(s):  
Risk Management ◽  
Risk Perception ◽  
Real Estate ◽  
Geographical Location ◽  
Point Of View ◽  
Added Value ◽  
Literature Study ◽  
Content Type ◽  
Corporate Real Estate ◽  
Risk Managers

Purpose – The purpose of this paper is to identify the corporate real estate (CRE) risks that might influence the added value of CRE to the shareholder value of an organization and to analyze if there are differences in perception of these risks according to job and company specifics of the respondents. Design/methodology/approach – A literature study was carried out to identify the CRE risks. In addition, a number of interviews were held with CRE specialists to complete the list of risks. An inventory of the risk perception was gathered by making use of a survey among 70 end-users, 16 CRE consultants and 2 CRE academics. Differences are analyzed making use of Kruskal–Wallis tests, Mann–Whitney U tests and t-tests. Findings – In total, 43 risks in six different categories were identified. It turned out that the risk perception differentiates the most per geographical location or industry segment. The size of the organization (number of employees) does not appear to influence the way in which the risks are perceived. Practical implications – This paper provides CRE managers and risk managers with a basis for a risk register that contributes to identification of possible CRE risks. Besides, it enables a comparison of their risk perception with industry peers. Originality/value – Earlier research concerning CRE risk management approached the subject from a specific point of view, but did not provide a CRE risk list using an integral perspective and covering multiple topics. Also, this paper provides insights in how CRE risk management is perceived in practice.

scholarly journals Big data and risk management in business processes: implications for corporate real estate

2019 ◽  
Vol 26 (5) ◽  
pp. 1141-1155 ◽  
Author(s):  
Enrico Battisti ◽  
S.M. Riad Shams ◽  
Georgia Sakka ◽  
Nicola Miglietta
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Big Data ◽  
Real Estate ◽  
Business Strategy ◽  
Process Management ◽  
Business Processes ◽  
Content Type ◽  
Data Intensive ◽  
Corporate Real Estate

Purpose The purpose of this paper is to improve understanding of the integration between big data (BD) and risk management (RM) in business processes (BPs), with special reference to corporate real estate (CRE). Design/methodology/approach This conceptual study follows, methodologically, the structuring inter-textual coherence process – specifically, the synthesised coherence tactical approach. It draws heavily on theoretical evidence published, mainly, in the corporate finance and the business management literature. Findings A new conceptual framework is presented for CRE to proactively develop insights into the potential benefits of using BD as a business strategy/instrument. The approach was found to strengthen decision-making processes and encourage better RM – with significant consequences, in particular, for business process management (BPM). Specifically, by recognising the potential uses of BD, it is also possible to redefine the processes with advantages in terms of RM. Originality/value This study contributes to the literature in the fields of real estate, RM, BPM and digital transformation. To the best knowledge of authors, although the literature has examined the concepts of BD, RM and BP, no prior studies have comprehensively examined these three elements and their conjoint contribution to CRE. In particular, the study highlights how the automation of data-intensive activities and the analysis of such data (in both structured and unstructured forms), as a means of supporting decision making, can lead to better efficiency in RM and optimisation of processes.

Designing a preference-based accommodation strategy

2015 ◽  
Vol 17 (2) ◽  
pp. 98-121 ◽  
Author(s):  
Monique Arkesteijn ◽  
Bart Valks ◽  
Ruud Binnekamp ◽  
Peter Barendse ◽  
Hans De Jonge
Keyword(s):  
Mathematical Model ◽  
Real Estate ◽  
Corporate Strategy ◽  
Design Method ◽  
Individual Preference ◽  
Design Procedure ◽  
Added Value ◽  
Content Type ◽  
Wide Range ◽  
Corporate Real Estate

Purpose – This paper aims to describe the development and test of such a design method to achieve alignment, which utilises the preference-based accommodation strategy (PAS) design procedure. One of the long-standing issues in the field of corporate real estate management is the alignment of an organisation’s real estate to its corporate strategy. A classification of alignment models shows that no model yet exists that is able to design a real estate portfolio and makes use of scales for direct measurement of added value/preference, and allows the aggregation of individual ratings into an overall performance rating. Design/methodology/approach – To perform the steps in the PAS design procedure, a mathematical model is designed and tested according to formal design principles. The PAS design procedure is iteratively repeated with the participants in a series of interviews and workshops. In the interviews, the participants determine their preferences and constraints as prescribed in the procedure; in the workshops, they design alternative portfolios using the mathematical model. The objective of the research is to formulate, test and evaluate if participants are able to perform the PAS design procedure. Findings – A methodology is developed for designing a real estate strategy that uses explicit scales for measuring value/preference and enables aggregating individual preference ratings into an overall rating taking into account both quantitative and qualitative portfolio properties. The tests of this design method with the participants reveal that by completing the steps in the PAS design procedure, users are able to determine their preferences accordingly. They were also able to design an alternative portfolio with a higher overall preference score than the current real estate portfolio. In addition, the design method is evaluated positively by the participants based on their experiences, the attractiveness of the method and perception of effectiveness of the method. Research limitations/implications – The positive results suggest that designing a strategy by using the PAS design procedure is a suitable approach to alignment. Practical implications – The PAS design procedure enables corporate real estate (CRE) managers to determine the added value of a real estate strategy. Because the PAS design method is generic, it can be used for a wide range of real estate portfolios. Originality/value – The first CRE alignment model uses stakeholders preferences to design a more optimal real estate strategy.

Adding value by health care real estate: parameters, priorities, and interventions

2016 ◽  
Vol 18 (2) ◽  
pp. 145-159 ◽  
Author(s):  
Theo J.M. van der Voordt
Keyword(s):  
Health Care ◽  
Real Estate ◽  
Health Care Facilities ◽  
Added Value ◽  
End User ◽  
Content Type ◽  
Dutch Health ◽  
Corporate Real Estate ◽  
Dutch Health Care ◽  
Care Facilities

Purpose Because of the transition of the Dutch health care sector from a governmentally steered domain towards regulated market forces, health care organisations have become fully responsible for their real estate. This paper aims to explore if/how Dutch health care organisations adopt the concept of adding value by corporate and public real estate, which values are prioritised and how these values are implemented in daily practice. Design/methodology/approach Literature study and a meta-analysis of six student theses (1 × BSc, 1 × MSc, 3 × post-MSc and 1 × PhD) on adding value by health care facilities were conducted, using document analysis and semi-structured interviews with CEOs, project leaders, real estate managers and facility managers. All respondents work in Dutch hospitals, assisted living facilities for the elderly, or mental health care facilities. The interviews were jointly prepared by the students, and the author of this paper being their supervisor. Findings End-user satisfaction, enhancing productivity and stimulating innovation are highly prioritised. Which values are prioritised depends on the organisational objectives, target group, available budget, position in the life cycle of design, construction and use and external context, in particular governmental policy and competition with other health care suppliers. The operationalisation into concrete design choices and strategic management of buildings-in-use is still underdeveloped. Research limitations/implications The interviews lasted 1-1.5 hours, which is rather limited to get a complete picture. Although much work has been done to operationalise the added value of corporate real estate and building-related facilities, there is still a lack of a widely agreed taxonomy of added values and how to measure and manage these values. Ongoing international collaboration between researchers and practitioners aims to contribute to a common framework and to develop standardised measurement methods. Practical implications The insights can support decision-makers in value-adding real estate and facilities management value by public and corporate real estate. The listings of prioritised values and related interventions can be used as a frame of reference to improve the current design and management of health care real estate. Social implications A clear insight in value-adding management of corporate real estate may result in a better fit among real estate, organisational objectives and end-user needs. Originality/value The findings link the added value theory to corporate real estate management in Dutch health care practice.

Improving decision making in CRE alignment, by using a preference-based accommodation strategy design approach

2017 ◽  
Vol 19 (4) ◽  
pp. 239-264 ◽  
Author(s):  
Monique Arkesteijn ◽  
Ruud Binnekamp ◽  
Hans De Jonge
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Design Methodology ◽  
Design Method ◽  
Design Procedure ◽  
Black Box ◽  
Added Value ◽  
Content Type ◽  
Corporate Real Estate ◽  
Strategy Design

Purpose One of the long-standing issues in the field of corporate real estate management is the alignment of an organisation’s real estate to its corporate strategy. To date, 14 models for corporate real estate (CRE) alignment have been made, as well as four comparative studies about CRE alignment. Some of the CRE alignment models indicate that they strive for maximum or optimum added value. However, because most models take a so-called procedural rationality approach, where the focus is not on the content of the decision but on the way that the decision is made, “how a CRE manager can select an (optimum) alternative” stays a black box. The purpose of this paper is to open the black box and offer a Preference-based Accommodation Strategy (PAS) design procedure that enables CRE managers to design a real estate portfolio, makes use of scales for direct measurement of added value/preference, and allows the aggregation of individual ratings into an overall performance rating. This procedure can be used as add-on to existing alignment models. Design/methodology/approach The objective of this paper is to test if participants are able to successfully perform the PAS procedure in practice. The PAS procedure is in essence a design methodology that aims to solve strategic portfolio design/decision-making problems. In accordance with problem-solving methodology, mathematical models are made for two pilot studies at the Delft University of Technology. This paper describes a second test of the proposed procedure for designing a real estate strategy. The application of real estate strategy design methods in practice is very context-dependent. Applying the PAS procedure to multiple context-dependent cases yields more valuable results than just applying it to one case. Findings The PAS design procedure enables CRE managers to select the (optimal) solution and thereby enhances CRE decision-making. The pilot study results reveal that, by completing the steps in the PAS procedure, the participants are able to express their preferences accordingly. They designed an alternative portfolio with substantially more added value, i.e. a higher overall preference score, than their current real estate portfolio. In addition, they evaluated the design method positively. Research limitations/implications The positive results suggest that designing a strategy by using the PAS design procedure is a suitable approach to alignment. Practical implications The PAS design procedure enables CRE managers to determine the added value of a real estate strategy and quickly and iteratively design many alternatives. Moreover, the PAS design method is generic, it can be used for a wide range of real estate portfolio types. Originality/value The PAS procedure is original because it considers CRE alignment as a combined design and decision problem. The use of operational design and problem-solving methodologies along with an iterative procedure, instead of empirical/statistical methods and procedures, is a novel approach to CRE alignment. The PAS procedure is tested in a second pilot study to provide an assessment of the methodology through the study by testing it under different conditions to the first study. The novelty of this pilot is also that it allowed testing the procedure in its purest form, as the problem structure did not require the additional use of linear programming.

Information security in the South Australian real estate industry

2014 ◽  
Vol 22 (1) ◽  
pp. 24-41 ◽  
Author(s):  
Deepa Mani ◽  
Kim-Kwang Raymond Choo ◽  
Sameera Mubarak
Keyword(s):  
Risk Management ◽  
Information Security ◽  
Real Estate ◽  
South Australia ◽  
Security Threats ◽  
The South ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector

Purpose – Opportunities for malicious cyber activities have expanded with the globalisation and advancements in information and communication technology. Such activities will increasingly affect the security of businesses with online presence and/or connected to the internet. Although the real estate sector is a potential attack vector for and target of malicious cyber activities, it is an understudied industry. This paper aims to contribute to a better understanding of the information security threats, awareness, and risk management standards currently employed by the real estate sector in South Australia. Design/methodology/approach – The current study comprises both quantitative and qualitative methodologies, which include 20 survey questionnaires and 20 face-to-face interviews conducted in South Australia. Findings – There is a lack of understanding about the true magnitude of malicious cyber activities and its impact on the real estate sector, as illustrated in the findings of 40 real estate organisations in South Australia. The findings and the escalating complexities of the online environment underscore the need for regular ongoing training programs for basic online security (including new cybercrime trends) and the promotion of a culture of information security (e.g. when using smart mobile devices to store and access sensitive data) among staff. Such initiatives will enable staff employed in the (South Australian) real estate sector to maintain the current knowledge of the latest cybercrime activities and the best cyber security protection measures available. Originality/value – This is the first academic study focusing on the real estate organisations in South Australia. The findings will contribute to the evidence on the information security threats faced by the sector as well as in develop sector-specific information security risk management guidelines.

scholarly journals Corporate real estate strategies and organizational culture

2018 ◽  
Vol 20 (3) ◽  
pp. 154-176 ◽  
Author(s):  
Ilir Nase ◽  
Monique Arkesteijn
Keyword(s):  
Organizational Culture ◽  
Real Estate ◽  
Principal Component ◽  
Competing Values Framework ◽  
Average Score ◽  
Competing Values ◽  
Content Type ◽  
Strategic Fit ◽  
Corporate Real Estate ◽  
Market Cultures

PurposeThe purpose of this paper is to investigate how strategic corporate real estate (CRE) management varies across different types of organizational culture. Additionally, the authors examine how a set of well-established strategies is categorized by CRE executives and investigate whether there have been any changes in priorities of managers’ rating in importance of these strategies compared to a post-GFC study. Design/methodology/approachA wide-scale survey of CRE managers was undertaken in summer 2016. Two key components of the survey are namely importance scoring of CRE strategies after the framework of Gibler and Lindholm (2012) and organizational culture assessment based on the competing values framework of Cameron and Quinn (2006). Analysis of CRE strategy importance is undertaken based on the average score comparison per each cultural family, and additional features are reported based on the industry sector, firm size and CRE department size. Principal component analysis is used to provide statistical evidence on the grouping of CRE strategies by practitioners. FindingsEmpirical evidence points toward a clear division on the organizational culture dimension that differentiates effectiveness criteria of flexibility and discretion from stability and control. More specifically, clan and adhocracy cultural types prioritize employee-centric CRE strategies, whereas hierarchy and market cultures consider “Reducing real estate cost” as their single most influential strategy. Research limitations/implicationsThe competing values framework has been adapted from the original ipsative scoring process to reflect the fact that only one respondent per firm assesses their organization’s culture. Practical implicationsThe findings of this study are useful to CRE managers striving for maximum strategic fit within their firms as they unveil clear patterns of CRE strategy prioritization among different organizational culture types. Originality/valueTo the authors’ best knowledge, this is the first study that analyzes the inter-relationships among CRE strategies and organizational culture variations. Additionally, the paper provides a categorization of CRE strategies through statistical methods that follow a clear pattern based on the scope of each strategy.

Defining a corporate real estate management's (CREM) brand

2014 ◽  
Vol 16 (1) ◽  
pp. 60-76 ◽  
Author(s):  
Abdul Jalil Omar ◽  
Christopher A. Heywood
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Relationship Building ◽  
Content Type ◽  
Study Approach ◽  
Brand Development ◽  
Corporate Real Estate ◽  
Multiple Case ◽  
Business Functions

Purpose – This paper aims to explore how branding theory can be used to understand corporate real estate management's (CREM's) relationships with its customers. Specifically, the perspectives of CREM executives and customers are used to develop a statement of a CREM brand. Design/methodology/approach – A multiple case study approach from four industry sections that consist of telecommunications, logistic, retail, and education from an emerging real estate market (Malaysia) and a mature real estate market (Australia). CREM executives and CREM customers from each case were interviewed to obtain information on CREM within organisations. Findings – The findings indicate that CREM supports the business by managing organisations' strategic real estate resources as its brand. CREM executives focus more on the technicality of real estate functions, while CREM customers expect corporate real estate (CRE) to support their business functions. Research limitations/implications – A CREM brand is important to CREM relationship building with the targeted customers. Successful brand development is able to increase CREM visibility to customers and at the same time gain appreciation of its contributions to the organisations. Originality/value – This is the first study that investigates CREM from a branding perspective. The mechanism for communicating CREM contributions using branding helps to increase acceptance from the customers.

scholarly journals Identification of changed paradigms in CRE research – a systematic literature review 2005-2015

2019 ◽  
Vol 21 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Tuuli Jylhä ◽  
Hilde Remøy ◽  
Monique Arkesteijn
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Final Analysis ◽  
Paradigm Shifts ◽  
Health Care Education ◽  
Literature Study ◽  
Content Type ◽  
Cost Minimisation ◽  
Corporate Real Estate ◽  
Future Value

PurposeAs corporations change their way of working, the importance of corporate real estate (CRE) management has increased. Hence, there is a need to structure the existing knowledge and to identify the latest developments in CRE research. This paper aims to identify the major developments and changed paradigms in CRE research in 2005-2015.Design/methodology/approachA systematic literature review is conducted, including papers from seven journals. In three sequential scans, papers were identified for the final analysis, keeping 99 of 1,667 papers.FindingsBased on nine identified developments, two paradigm shifts were found. The shift from cost minimisation to value delivery was identified. Besides solving current problems, value delivery aims to capture the future value and prevent future problems. The second paradigm shift is from buildings to people. Before the shift, buildings refer to value delivery as a transaction, while the shift to people highlights the aim to provide value-in-use.Research limitations/implicationsThis paper focusses on corporate offices, excluding retail, health care, education, publicly owned facilities, etc. This research is limited to CRE research. Therefore, the results are applicable to CRE research but do not cover the developments in practice.Practical implicationsFor practitioners, this paper offers a possibility to develop their RE strategies by reflecting their current practices with the identified developments and paradigms in the CRE literature. This paper suggests to conduct a similar research in practice to compare the underlying paradigms.Originality/valueThis paper is based on a systematic literature study, and summarises developments in CRE research over the past 10 years.

Corporate real estate strategies: the Nigerian experience

2015 ◽  
Vol 17 (4) ◽  
pp. 244-259
Author(s):  
Timothy Tunde Oladokun ◽  
Bioye Tajudeen Aluko
Keyword(s):  
Real Estate ◽  
Business Performance ◽  
Stock Exchange ◽  
Primary Data ◽  
Content Type ◽  
The Real Estate ◽  
Corporate Objective ◽  
Corporate Real Estate ◽  
Public Organisations ◽  
Real Estate Management

Purpose – The paper aims to contribute to the empirically scarce literature on corporate real estate management (CREM) strategies by providing meaningful insights on the different strategies likely to contribute to business performance in a developing country like Nigeria. Design/methodology/approach – Primary data collected using questionnaire administered on property managers of the 105 business organisations in the list of registered companies with the Nigerian Stock Exchange were used for the study. The questionnaire elicited information on the real estate holding pattern and the adopted strategies for acquiring and managing real estate assets. The data collected were analysed using percentages, mean and proportion method. Findings – The study established that 41 per cent of the organisations were public organisations. Others were private companies (31 per cent), government departments (18 per cent) and multi-nationals (10 per cent). The result indicated that 31.8 per cent had no CREM strategy. Strategies used were: cost reduction (18.75 per cent), facilitate production (20.17 per cent), flexibility (15.5 per cent), promote human resource objectives (10.86 per cent), promote the marketing message (4.33 per cent), promote sales and selling delivery (18.67 per cent), facilitate managerial process and knowledge (7.5 per cent) and capture real estate value (6.5 per cent). The study concluded that CREM is a useful tool that the organisations can make effective use of to improve their performance. Research limitations/implications – Limiting the scope of the study to the perception of the respondents could reflect an element of bias and might pose a great challenge to the representativeness. Also, the use of closed question questionnaire may limit the validity of the results. Practical implications – The study has major implications on business performance in Nigeria. There is the need for corporations to reappraise their real estate strategy and realign it with their corporate objective. There is also the need for Nigerian Institution of Estate Surveyors and Valuers to train its members for contemporary business requirements. Originality/value – The paper is a useful guide to corporate real estate managers in developing countries towards using real estate strategies to minimize the overall cost of their companies.

The state of value creation in the real-estate sector – lessons from lean thinking

2014 ◽  
Vol 32 (1) ◽  
pp. 28-47 ◽  
Author(s):  
Tuuli Jylhä ◽  
Seppo Junnila
Keyword(s):  
Real Estate ◽  
Value Creation ◽  
Service Providers ◽  
Added Value ◽  
Lean Thinking ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector

Purpose – Although great emphasis has been given to the added value of real estate, the current studies miss the phase when the actual value is created, i.e., the production phase of real-estate services. Therefore, the purpose of this paper is to evaluate the current state of value creation of the commercial real-estate services from a lean thinking perspective. Design/methodology/approach – Value creation is studied in four Finnish cases through 122 interviews and eight workshops. Findings – Cross-case analysis identified six sources of waste resulting as poor value creation: sub-process optimisation instead of optimising the entire process, the price minimisation instead of cost minimisation, difficulties responding to customer value, overloaded employees, inability to make improvements, and poorly managed information. Research limitations/implications – Although the findings are grounded on a solid data collection and analysis, the case study nature of the research and the Finnish case study settings create limitations for the generalisation of the findings. Practical implications – Service providers and other process owners can use the findings to improve their value creation and increase the productivity of their service processes. Originality/value – This is one of the first research studies that utilise lean thinking in commercial service processes in the real-estate sector and thus provides new insight into how to increase productivity through waste minimisation.

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