Examining the building selection decision‐making process within corporate relocations

Abstract

PurposeThe aim of this paper is to consider the complex decision‐making process involved in corporate relocation and the validity of a tool designed to improve the objectivity and strategic management of this process and to change the focus of the decision upon the strategic management objectives rather than the real estate deal.Design/methodology/approachThe authors identify the progression of the decision‐making process; disaggregate components of that process; and evaluate a tool designed to improve the decision‐making process.FindingsThe size of the organisation can have a significant impact on the building evaluation and decision‐making process, smaller firms with less resources are more likely to make the relocation decision based on “gut feeling” rather than detailed evaluation. However, with increased transparency, accountability and corporate social responsibility, decisions based on more rigorous and objective approaches are being demanded. The evaluated tool facilitates a more objective approach and shifts the focus from a real estate to a business decision.Practical implicationsCorporate real estate managers can use the information to evaluate their own decision‐making processes against the framework of the tool and decide if it may be applicable to their context.Originality/valueThe paper fills a void by examining the decision‐making process from a fresh perspective, updates the thinking by providing a contemporary tool which has been beta tested with students and is about to be piloted with corporate clients.