The evolution of corporate real estate: Trends in organisation and performance measurement

Abstract

The corporate real estate professional has developed in step (though some would say a step behind) changes in the economies of the world and, more importantly, business drivers over the last 150 years. As the world’s economies have moved from an agrarian base through the industrial age, and into the information age, business has finally reached the globalisation that has been predicted for decades. Today’s corporate real estate (CRE) function bears little resemblance to the days when the only issue was on which side of the river to build the new mill. CRE function has evolved in two ways: the way it is organised, and the function it performs. The CRE role has become much more sophisticated, as well as the measurements of success. It has had to do both of these things to keep pace with ever‐changing business drivers. There is, though, significant debate on what exactly the optimal CRE organisation should look like and how it should relate to the business. Before discussing the future direction of CRE, it is important to review the context of its history, where it has been in the past, how it has changed and what problems linger.