Showing papers in "Journal of Corporate Real Estate in 2008"
TL;DR: In this paper, the authors explore the added value of real estate interventions to organisational performance, theoretically and empirically, including unforeseen positive and negative side-effects, by conducting time series analyses of changing organizational performance using several KPIs.
Abstract: Purpose – Real estate is increasingly used as a “fifth” resource to improve the performance of organisations by a positive image, cost reduction, increased employee satisfaction and increased labour productivity. A clear conceptual framework and standardised key performance indicators (KPIs) are needed to understand and monitor the effects of real estate interventions. This paper aims to explore the added value of real estate interventions to organisational performance, theoretically and empirically, including unforeseen positive and negative side‐effects.Design/methodology/approach – The conceptual framework was based on an extensive literature survey and has been empirically used in a survey among 47 Institues of Higher Professional Education in The Netherlands and additional in‐depth interviews at nine institutes. The effects of real estate interventions were studied by conducting time series analyses of changing organisational performance using several KPIs.Findings – The research has shown that real ...
107 citations
TL;DR: To truly appreciate office productivity there is a need to further understand the way that people work in offices and their specific requirements, as well as to undertake an analysis of office occupiers by work process type.
Abstract: Purpose – This paper aims to establish if office occupiers, who adopt different work patterns, can be segmented based on differences of perceived productivity with regards to the physical environment and the behavioural environment.Design/methodology/approach – Components of office productivity were used in an office productivity model with categorical data enabling a unique opportunity to undertake an analysis of office occupiers by work process type.Findings – The four distinct evaluative components used were comfort, office layout, interaction and distraction. The components were subsequently used for more detailed statistical analysis. This study establishes that statistical differences exist between the work styles under investigation.Research limitations/implications – This research establishes that to truly appreciate office productivity there is a need to further understand the way that people work in offices and their specific requirements. The matching of office occupier need with space provisio...
85 citations
TL;DR: In this article, an integrated facility management (FM) framework was developed to evaluate the quality of services provided by local authorities (LA) to the public, and an FM-SERVQUAL instrument was developed for measuring the service quality of such services.
Abstract: Purpose – The purpose of this paper is to evaluate the quality of services provided by local authorities (LA) to the public. An FM‐SERVQUAL instrument was developed to meet an appropriate measurement of such services.Design/methodology/approach – The development of FM‐SERVQUAL based on integrated facility management (FM) framework. It involved measurements of 40 elements of human capital components, property, technology and ICT, and working processes of Johor Bahru City Council which is one of the major cities in Malaysia. Primarily, two phases of data collection were carried out, of which 100 and 191 respondents were involved during the first and second phases, respectively.Findings – The study revealed that, five elements in technology and ICT and six elements of property which were identified below the service quality (SQ) level. On the other hand, 29 elements of other services were achieved with minimum quality level.Practical implications – The LA executives recognized FM‐SERVQUAL, as it is very usef...
83 citations
TL;DR: In this article, a model for the relationship between corporate real estate management (CREM) practices and an organization's sustainable competitive advantage is proposed, based on the strategic management, organisational competitiveness, and CRE literatures.
Abstract: Purpose – This purpose of this paper is to propose a model for the relationship between corporate real estate management (CREM) practices and an organisation's sustainable competitive advantage. Corporate real estate (CRE) plays an important but poorly recognised role in organisational competitiveness.Design/methodology/approach – The model was developed from the strategic management, organisational competitiveness, and CRE literatures. A total of 162 CREM practices from the literature were connected, where possible, with cost, innovation and differentiation sources of sustainable competitive advantage. Clustering similar practices allowed the summarising of competitive effects in those clusters and each of the sources of sustainable competitive advantage. Technical CREM practices were the focus of analysis as they constitute the traditional core of CREM.Findings – Many gaps were identified in the theoretical connections between practices and sources of sustainable competitive advantage. Overall, cost dom...
61 citations
TL;DR: In this article, an exploratory, user-centred research focused on the design of the work environment was undertaken with older knowledge workers in the UK headquarters of a global organisation, where a multi-disciplinary group of designers, architects and applied social researchers utilised an integrated method approach, including interviews, group discussions and design interventions in the workplace.
Abstract: Purpose – The aim of this paper is to assess the needs of older knowledge workers with implications to the planning and design of office environments for this growing workplace demographic.Design/methodology/approach – Exploratory, user‐centred research focused on the design of the work environment was undertaken with older knowledge workers in the UK headquarters of a global organisation. A multi‐disciplinary group of designers, architects and applied social researchers utilised an integrated method approach, including interviews, group discussions and design interventions in the workplace.Findings – Matching the needs of older knowledge workers with the open plan office space, it is found that the workplace provides well for collaboration and teamwork activities, but fails to provide an adequate environment for tasks requiring concentration, ways of working that are alternative to the computer, and rest and recuperation.Research limitations/implications – The sample of the study is small and based on a ...
46 citations
TL;DR: In this paper, the authors present the findings of research to identify the key issues affecting organisations implementing and managing workplace change projects, and identify how occupiers take a variety of ad hoc approaches to delivering workplace change and capturing the benefits through performance measurement.
Abstract: Purpose – The purpose of this paper is to present the findings of research to identify the key issues affecting organisations implementing and managing workplace change projects.Design/methodology/approach – A review of literature relating to the constituents of a high‐performance workplace, the impact of workplace change and how workplace performance may be measured, sets the foundation for structured interviews with real estate and facilities executives. Interviews sought to obtain up‐to‐date insights from 17 UK‐based occupiers, drawn from corporate, public and professional services enterprises, which have recently managed accommodation change projects.Findings – The paper identified how occupiers take a variety of ad hoc approaches to delivering workplace change and capturing the benefits through performance measurement. The evidence suggests that occupiers rely on their own experiences in evaluating their progress towards high‐workplace performance and are not constrained by any lack of evidence of a ...
42 citations
TL;DR: In this paper, the authors demonstrate how to use a scenario planning futures approach in a changing, complex and uncertain workplace environment, as well as provoke thought and discussion about its long-term future.
Abstract: Purpose – The changes now being experienced in the workplace, driven by market pressures, changing demographics and new technologies, are real and accelerating. Since change remains the one constant when it comes to workplace planning, further transformations within the workplace over the next 20 or 30 years can be expected. Hence, this paper aims to demonstrate how to use a scenario planning futures approach in a changing, complex and uncertain workplace environment. As well as provoke thought and discussion about its long‐term future.Design/methodology/approach – At the Futures Academy in Dublin Institute of Technology, a systematic methodology for exploring and shaping the future has been developed, called the “Prospective through scenario” process. Each stage of the process is discussed in detail throughout this paper, as well as how the process is applied in the Johnson Controls workplace of the future study.Findings – The creative “futures studies” approach can deal effectively with change, uncertai...
29 citations
TL;DR: It was found that, instead of increasing it, the reconfigured workplace decreased collaborative activity, and the spatial network analysis shows how this occurred.
Abstract: Purpose – The purpose of this paper is to describe how to measure workplace configuration, show its application in, and the results of, a field experiment aimed at improving collaborative knowledge work and identify and discuss larger problems involved with research on workplace configuration.Design/methodology/approach – The paper reviews recent thought on density, proximity and problems with evaluating configuration. It then describes a method of spatial network analysis used in a field experiment involving the reconfiguration of a workplace. This is followed with a discussion of recent research on knowledge work from economic geography.Findings – It was found that, instead of increasing it, the reconfigured workplace decreased collaborative activity. The spatial network analysis shows how this occurred.Research limitations/implications – This method of spatial network analysis, when used carefully, is a robust technique for analyzing and comparing spatial configuration. Further research needs to addres...
28 citations
TL;DR: In this paper, the authors discuss three corporate real estate (CRE) perspectives (business, financial and capital market) as well as some potential issues, supported by key research studies and evidence drawn from listed retail companies in the USA, and European and Asian countries; as real estate has always been recognized as a key value driver in the retail industry.
Abstract: Purpose - The purpose of this paper is to discuss three corporate real estate (CRE) perspectives (business, financial and capital market) as well as some potential issues, supported by key research studies and evidence drawn from listed retail companies in the USA, and European and Asian countries; as real estate has always been recognized as a key value driver in the retail industry. Design/methodology/approach - A significant amount of capital is locked-up in CRE by business firms, and so this paper analyzes the role of CRE from a combination of three perspectives: business, financial and capital market. These three CRE perspectives are discussed and some important issues reviewed, supported by key research studies and evidence drawn from listed retail companies in the USA and in European and Asian countries. Findings - Arising from the review and perspectives offered in this paper, it is evident that performance measures are required to assess how CRE are being used and perceived by management and investors from the business, financial and capital market perspectives. This combined approach helps position the strategic role of the CRE in the context of "whole firm" that reflects the integration of trading and real estate activities. Practical implications - With an effectiveCREAMsystem endorsed by top management, the CRE' s potential contribution and incremental performance can be factored into the financial plans of the "property-rich" retail firms and appropriately reflected in corporate valuation. Originality/value - This paper offers combined business, financial and capital market perspectives to assess the role of CRE in listed retail firms. Evidence and important issues in relation to the three perspectives are reviewed and evaluated.
25 citations
TL;DR: In this paper, the authors investigate the corporate real estate practices of 25 major corporations in Australia and find that there is a great disparity between corporat... and the role of cost or profit centres in corporations.
Abstract: Purpose – The purpose of this paper is to investigate the corporate real estate (CRE) practices of 25 major corporations in Australia. It will study such areas as, what constitutes CRE, the performance measures used in CRE practice, CRE management units, planning horizons in CRE, owned and leased CRE, outsourcing policies for CRE, use of benchmarking measures to assess the performance of CRE, use of “gain share” practices in CRE operations, use of flexible CRE practices and the role of cost or profit centres in corporations.Design/methodology/approach – A data base was established using 25 companies (corporations) taken from the top 200 listed in the Australian Financial Review. Contact was made with the companies and interviews were carried out to obtain the relevant data. As well as the annual reports for the companies were analysed over the last five years to extract the necessary financial and additional property data.Findings – The conclusions indicate that there is a great disparity between corporat...
25 citations
TL;DR: In this article, the authors identify the reasons why acquisitions of corporate real estate are a positive net present value (NPV) investment to the acquiring firms and draw theoretical explanations from real estate and finance literature to identify reasons for the acquisitions to be positive NPV investments to non-property listed companies.
Abstract: Purpose – Acquisitions of properties are carried out by corporate firms for development, investment and operational uses. Acquisitions of corporate real estate announced by listed non‐property companies are found to have positive stock price reactions. This paper seeks to identify the reasons why acquisitions of corporate real estate are a positive net present value (NPV) investment to the acquiring firms.Design/methodology/approach – This paper draws theoretical explanations from real estate and finance literature to identify the reasons for the acquisitions to be positive NPV investments to non‐property listed companies.Findings – The sources of gains in property acquisitions are worth, marriage value and business synergy. These explanations provide the reasons why the announcement of property acquisitions by listed companies could lead to positive wealth gains in the capital market.Originality/value – This paper offers the explanations behind the positive stock price reactions upon the announcements of...
TL;DR: A review of the development of corporate real estate asset management (CREAM) in New Zealand since 1992 was carried out by Wei Kium Teoh as discussed by the authors, who carried out a 14-year time series analysis of CREAM practice.
Abstract: Purpose – This research paper aims to review the development of corporate real estate asset management (CREAM) in New Zealand since 1992.Design/methodology/approach – The first research into CREAM in New Zealand was carried out by Wei Kium Teoh. Lincoln University staff and post graduate students have subsequently undertaken several CREAM research projects involving surveys of organizations in New Zealand. These were spread over a 14 year time period and led to the opportunity to carry out a time series analysis of the development of CREAM practice in New Zealand.Findings – Substantial improvement in some aspects of CREAM practice was observed, for example, in the qualifications of those responsible for CREAM and the development of strategic plans for those assets. However, other aspects of CREAM have remained remarkably stable or plateaued, for example the percentage of organizations with a separate real estate unit, reporting levels to management and the allocation of real estate costs.Research limitati...
TL;DR: In this paper, the authors investigated the risk perceptions of persons responsible for business relocation and found that risk perceptions can be divided into five categories: financial risks, functional risks, corporate culture risk, interest group risk and future risk.
Abstract: Purpose – The purpose of this paper is to understand the risk perceptions of persons responsible for business relocation.Design/methodology/approach – The empirical material consists of interviews in companies that have considered relocation seriously or have recently relocated. The empirical material is augmented by a literature review.Findings – The risk perceptions can be divided into five categories. These are: financial risks, functional risks, corporate culture risk, interest group risk and future risk.Practical implications – When a company relocates, the stress and anxiety of the persons responsible for the process should be considered. Also, when doing relocation‐related business, reducing relocation risks should be considered when planning the business model and marketing.Originality/value – This paper combines relocation literature in a multi‐disciplinary manner and adds empirical understanding of the phenomena in question.
TL;DR: In this article, the authors established empirical connections between corporate real estate management (CREM) practices and organisations' sources of sustainable competitive advantage (SSCA), and the alignment of CREM practices with modes of achieving competitiveness provided greater competitive advantage from CREM.
Abstract: Purpose – The paper aims to establish empirical connections between corporate real estate management (CREM) practices and organisations' sources of sustainable competitive advantage (SSCA). The alignment of CREM practices with modes of achieving competitiveness provides greater competitive advantage from CREM.Design/methodology/approach – The model for sustainable competitive advantage for corporate real estate (CRE) theorising the connections between CREM practices and SSCAs was implemented in a survey of Australian CRE managers. Practices' competitive benefits are reported at the aggregated level of practice categories and illustrated with a selected category of individual practices.Findings – The model was supported by the study's results by providing connections suggested in the model but not previously corroborated in the literature. The cost source of sustainable competitive advantage was a dominant empirical competitive mode for CREM, as it was in the model. Categories of technical CREM practices p...
TL;DR: In this paper, the authors look at the problem caused by the operation of break clauses contained in commercial leases and highlight issues that can arise and how a Corporate Real Estate Manager or advisor can avoid or minimise those risks.
Abstract: Purpose – The purpose of this paper is to look at the problem caused by the operation of break clauses contained in commercial leases – a predominantly UK phenomenon, a consequence of longer lease terms.Design/methodology/approach – The pitfalls that can befall a corporate occupier are numerous and the authors of this paper share some of their recent experiences to highlight issues that can arise and how a Corporate Real Estate Manager or advisor can avoid or minimise those risks.Findings – For corporate occupiers, the operation of a break clause can be fraught with difficulty and its successful implementation requires a strategy to be put in place well in advance of the break date.Originality/value – The paper shows how turmoil in the wider financial market could make the flexibility that breaks offer very important to certain businesses.
TL;DR: In this article, the authors provide an overview of the merits of occupancy planning as a means for improving strategic decisions regarding real estate portfolios and strengthening the credibility of corporate real estate (CRE) professionals.
Abstract: Purpose – The aim of this paper is to provide an overview of the merits of occupancy planning as a means for improving strategic decisions regarding real estate portfolios and strengthening the credibility of corporate real estate (CRE) professionals.Design/methodology/approach – The authors' extensive experience is combined with survey results and case examples of how two global companies are benefiting from occupancy planning.Findings – Occupancy planning programs lead to better data and forecasting, which in turn create a more accurate portfolio‐wide view and improved space utilization.Originality/value – This article demonstrates the link between effective occupancy planning and sound CRE decisions.