Enhancing the contribution of corporate real estate to corporate strategy

Abstract

PurposeThe 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.Design/methodology/approachA 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.FindingsMany 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.Research limitations/implicationsFuture 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.Practical implicationsThe 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.Originality/valuePrior 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.