Data intelligence and real estate – machines are the real game changer

PurposeThe paper shows with two concrete examples about how algorithms are used in active real estate management. The paper also highlights that the discussion about the adoption of new technologies is crucial for market players.Design/methodology/approach The authors review the current status quo about new technologies in real estate and provide two examples of how algorithms can be used to understand locations and the value drivers of rents.FindingsLocation, location, location is nowadays data, data, data coupled with the knowledge of how to create life out of data. Algorithm can help to understand the value drivers of rents and can also help to evaluate the attractiveness of a location.Practical implicationsReal estate management will adapt to new technologies fast. This change has the potential to disrupt exiting strategies due to the increase in efficiency, insights, transparency and location knowledge. Investment managers walking this talk will definitely benefit in future.Originality/valueThe paper makes usage of the latest machine learning technologies applied to real estate investment cases. This is a unique opportunity on bringing light on the discussion about transparency in real estate.

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

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.

Challenges of strategic corporate real estate management in Ghana

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.