Corporate Real Estate Strategy Research Articles

A Comparative Study of Corporate Real Estate Strategies for Selected Local and Foreign Commercial Banks in Malaysia (Document Review)

Identify organizational objectives in relation to corporate property and organizational objectives in relation to the business strategy of the local and foreign commercial banks in Malaysia. The paper applies a qualitative research approach with document reviews as the main source of data collection techniques. Annual reports of around 12 documents of both local and foreign commercial banks have been reviewed Rigorous data analysis using qualitative data analysis software was employed. Findings from the related documents review revealed that most of the foreign commercial banks have a diversification strategy which is to increase the number of branches. This seeks to increase profitability through greater sales volume obtained from new products and new markets globally. While on the other hand local commercial banks have restructuring and acquisition strategies and this acquisition overcome costly barriers to entry which may make “start-ups” economically unattractive. This paper generates new knowledge about corporate strategies in relation to corporate property strategy and business strategies.

The alignment of corporate real estate strategy with corporate strategy: experiences from selected higher education institutions in Ghana

PurposeThe study aims to examine the relationship between corporate real estate (CRE) strategy and corporate strategy (CS) in selected universities in Ghana. It focused on the availability, usage, alignment and effects of CRE strategy on CS in universities.Design/methodology/approachThe study adopted a qualitative research design, using purposive and convenience sampling techniques. Interviews were used to collect data from estate departments of selected Ghanaian higher education institutions (HEIs) in Kumasi.FindingsAll the selected HEIs purported to have CRE strategies, but they lacked a holistic approach. They were essentially just maintenance policies developed based on their CSs to support the institutions in their service delivery. All CRE management decisions were aligned with the CRE strategy.Originality/valueThe study highlights the importance of aligning CRE strategies with CSs in HEIs in developing countries to enhance academic environments.

Redesigning workspace at Adobe: an Indian perspective

PurposeThe purpose of this study is to describe the success story of a software company, Adobe, in redesigning the workplace environment from cubicles to a connected collaborative workplace, which helped the organization optimize workplace usage. The goals were to design an innovative work environment to optimize the usage of the office portfolio, improve workplace service quality and infrastructure facilities of the portfolio, increase employee productivity, reduce technology costs, engage employees in a better way to enhance employee satisfaction, align workplace design with the brand, mobilize technology and enable a globalized workforce to facilitate higher productivity.Design/methodology/approachAn exploratory research design method was adopted using the purposive sampling technique to collect data through semi-structured interviews with a team of nine property professionals from the operations team responsible for workspace redesign at Adobe in India.FindingsThe main observations of the corporate real estate (CRE) manager were on what value parameters drive workplace redesign and how different software companies were creating strategies to manage workplace design or redesign change for optimal use of the organization portfolio. To discuss the CRE strategies of global software leaders, IBM and SAP were pointed out in this case.Research limitations/implicationsThe number of interviews were limited. The related parameters for workplace transformation are not necessarily complete. However, the parameters are regarded to include the most important aspects of workplace redesign.Practical implicationsThis study provides useful insights into how benchmarking in the workplace transformation function of the CRE industry can be applied to address portfolio-related challenges, divergent employee needs and improve workspace usability following energy-efficient policies. Practitioners can use this study as a guide to develop more effective workspace designs.Social implicationsThis study may guide other firms on successful workspace design initiatives that may overcome many obstacles in the workplace transformation process to have their intended impact on workplace efficiency and employee satisfaction. The case can be used as an inspiration for developing specific user-focused innovative workspace design in practice.Originality/valueAdopting the theoretical background of the person–environment fit theory, this study adds to the understanding of the operational model of a digitally connected workspace designed as per real estate needs and strategies to manage the CRE portfolio of the company.

Work from home: bane or blessing? Implications for corporate real estate strategies

Technological progress and developments in the economy and society are constantly changing the way we work. The ongoing COVID-19 pandemic is accelerating the move towards multilocal working: knowledge workers worldwide have been forced to gain experience of working from home. Based on this experience, they are now in a position to weigh up different places of work and articulate desires for the distribution of working time between home workplace, third places and office.Previous studies have shown that working from home can have positive effects for corporates in the form of productivity increases. However, it has so far remained open which employees exactly are successful at different workplaces. The aim of the study is to identify clusters with their own workplace distribution based on personal, work-related and real estate characteristics, and to investigate whether the desire for specific workplace distribution promises success.Identification of the subgroups is done by conducting a hierarchical cluster analysis that includes previously identified personal, work-related and real estate characteristics. The evaluation and interpretation of the cluster solution is based on the desired workplace distribution and identified work success variables. Data from a survey of 2000 German and US knowledge workers is taken into account.The results of the survey suggest that knowledge workers in Germany and the US have developed a good sense of the workplace in which they can work successfully. At the same time, the decision-makers in the corporates have to decide carefully who should work at which workplace with a view to the corporate’s success. It is also clear that as work becomes more multilocational, real estate resources must play an important role in creating a corporate culture and identity.

Why do they go to the peripheries? Studying the relations between the real estate market and coworking spaces in the peripheral areas of Germany

PurposeThe study was designed to investigate the bidirectional causation between the real estate market characteristics (residential property prices/rents (including PTR), office rents) and the rise of coworking spaces (CSs) in the peripheral areas of Germany.Design/methodology/approachBased on the desk research, the authors constructed their own database of 1,201 CSs. The authors gathered data on the residential and office prices and rents on a district level. To identify real market differences between districts with and without CSs, the authors applied the t-test for independent samples.FindingsThe second-highest number of CSs were found to operate in the office market peripheries. This phenomenon should be explained by a search for lower office rents, which CSs seek. Most CSs in the peripheral areas of Germany were only recently established in tourist-oriented regions in the south and north of Germany. In this paper, the authors confirmed that the strength of peripheral CSs lies in the hybridity of their operations: for the majority of CSs, running a CS is a non-core business. The authors argue that the role of CSs is rather limited in attracting real estate investors and boosting the real estate market in the peripheral areas of Germany.Practical implicationsThe research shows that peripheral locations are attracting CSs to significant extent. The study shows that CSs can be part of corporate real estate or workplace strategies. As the majority of peripheral CSs are located in tourism areas, the subletting of vacant spaces could be a lucrative business model for hotels, particularly in the times of pandemics. Therefore, further research should focus on the role of tourist areas in the implementation of CSs model.Originality/valueThe focus of this study (CSs in peripheral areas) is original. Additionally, applying the real estate perspective to study the location of CSs is novel as well.

Corporate Real Estate Strategies for Localization of Transnational Corporations - Focus on Costco and TESCO -

Corporate Real Estate Strategies for Localization of Transnational Corporations - Focus on Costco and TESCO -

A study on office workplace modification during the COVID-19 pandemic in The Netherlands

PurposeTriggered by public concerns over office workplace safety during the COVID-19 pandemic, this study sheds light on the office workplace environment and aims to investigate how organisations respond to forces from the external environment (impacted by the COVID-19 pandemic) and how they modify their office workplace management strategically and operationally to suit the stakeholders’ needs and future development in the post COVID-19 period.Design/methodology/approachA desktop study was conducted to provide the framework for the in-depth interviews with five corporate real estate (CRE) managers and three workplace consultants. Thematic analysis including coding technique was adopted to analyse the qualitative data.FindingsThe findings show that during the COVID-19 pandemic, most of the intended and implemented office workplace modifications are mainly related to two types of risk control: administrative control and personal protection. At a strategic level, organisations react to the external forces by re-modelling their businesses and working towards re-orienting their CRE strategies, such as portfolio transformation, agile portfolio strategies and redesign of the office workplace, etc.Originality/valueThis is a topical and timely study that presents the general practice of office workplace modification during the COVID-19 pandemic, as well as the related CRE management (CREM) strategies developed for the new normal. The findings obtained through in-depth interviews have well supported the CREM strategic alignment theory. It is foreseen that office workplace management will encounter other challenges due to uncertainties of the COVID-19 pandemic. The findings of this study provide a practical lens to look at the future changes of office workplace environment.

Workplace strategy and scenario planning : Moving beyond the tangible to understand the future of work and place in a post COVID-19 world

Our current global situation resulting from the COVID-19 pandemic creates an opportunity to revisit a paper I authored that was published in the Summer 2017 issue of Corporate Real Estate Journal. In that paper I cautioned that the traditional methodologies used in the corporate real estate (CRE) and workplace strategy arena to predict the future of an organisation’s workplace were short-sighted and did not provide the breadth of vision that would take into consideration a broader sphere of disruptions and changes to any given organisation. I recommended adopting scenario planning methodologies that would include an analysis of the conventional areas but would also include disruptions resulting from political, social, economic and health threats. Four years later, this paper revisits that hypothesis and examines our current COVID-19 condition and poses the same opportunity for helping organisations develop viable strategies for both their initial re-entry phase back to the workplace and, more importantly, in planning for a ‘reimagined’ workplace where both the nature of work and place are potentially redefined. The paper cautions against predictions based on limited knowledge and trends, as well as definitive solutions, but puts forth the proposition that scenario planning will be a more effective means to help organisations guide their enterprises into this reimagined world of work.

Gen Z and the workplace: Can we all get along?

Born between 1996 and 2012, Gen Z currently accounts for 20 per cent of the US population1 and 32 per cent of the global population, surpassing Millennials in size.2 Characterised as career-focused, hardworking and realistic, Gen Z is the most racially diverse and predicted to be the most highly educated generational cohort in US history.3 While much attention is currently being paid to their predecessors — the Millennials — Gen Z will comprise 30 per cent of the workforce by 2030, making knowledge of their workplace preferences and attitudes vital for corporate real estate (CRE) leaders globally. Gen Z is a truly global generation. If they have access to the Internet, they have access to the same news and information as their peers around the world, making geographical borders far less significant. This paper builds on previous work, published in the Corporate Real Estate Journal in 2018.4 As Gen Z enters the workforce, it will also have implications for office design and CRE strategies based on recent research. The paper will outline the findings of research led by Melissa Jancourt, now Principal Consultant for TAC Design LLC in partnership with the Interdisciplinary Center for Healthy Workplaces (IDCHW) at the University of California Berkeley and in association with national design firm, HGA’s Digital Practice Group. Data for the study was gathered through focus groups, design charrettes and validated through virtual reality (VR) experiences and a post-VR debrief. Four themes emerged as important among Gen Z participants: 1) balancing connections with nature, technology, convenience and location; 2) a clear distinction between the roles of humans as problem solvers and technology as facilitating connection; 3) psychological safety is a more prominent concern than physical safety; 4) inclusive environments that prioritize choice, control, and proximity are essential. A broader lens was adopted in subsequent rounds of testing — one that included diverse age groups across three global organisations. These results begin to give shape to a future workplace where multiple generations will work side-by-side. The addendum to this paper recognises the sudden and profound impact that COVID-19 has had on work and personal lives across the globe. Many of the trends identified in the Gen Z research respond to change driven through an intrinsic tie between organisational thriving and personal and communal resiliency. COVID-19 has proven to be an accelerant of these trends underlining the importance of enterprise-wide learning, personal connection and mental well-being.

Student residences: time for a partnership approach?

PurposeRecent years have witnessed significant increases in the number of undergraduate students entering UK higher education. This increase is a result of the removal of the sector-wide cap on student numbers in England and Wales, along with a growth in overseas students attracted by the reputation of UK universities and the weakening of the value of Sterling. Adopting a corporate real estate perspective, the aim of this paper is to understand how the UK student residence market is structured and financed, and to identify the motivations that are driving the strategies adopted by the universities, private sector providers and investors in this market. In doing so, this research seeks to test the appropriateness of the Gibler and Lindholm (2012) model of corporate real estate strategy in the UK higher education sector.Design/methodology/approachData was gathered from a survey of UK university secretaries, combined with interviews of private sector providers, bank lenders and the analysis of secondary data on investment flows into purpose built residential accommodation (PBSA).FindingsUK university real estate strategy is mainly one of outsourcing student accommodation to reduce costs as well as employing modern purpose-built student housing as a marketing tool and brand enhancer. This strategy is also used as a risk mitigatory tool enabling universities to adjust to changing student demands. Revisions to the Gibler and Lindholm (2012) model are proposed to reflect the reality of the real estate strategy adopted by the universities. Private sector providers view the sector favourably and are set to be the main providers of new supply over the next decade, entering into strong partnerships with the universities. While there is evidence of some oversupply of bed spaces in certain cities, well-located developments are viewed as an attractive lending opportunity. Since 2013 there has been significant growth in institutional investment into UK student accommodation, albeit sentiment is currently tempered by political uncertainty.Practical implicationsThe role of PBSA designed to meet modern student requirements is playing a critical role not only in attracting, recruiting and retaining students but also enhancing the overall higher education experience promoting student welfare and well-being.Originality/valueThe corporate real estate strategy adopted by the UK higher education sector is an under researched area. This paper focuses on the strategy surrounding student accommodation provision and reports on the findings of an extensive survey of the key players in this sector. The results are of value to all stakeholders including government and regulators, at a time when higher education is facing substantial challenges. The evidence of a growing partnership between universities and the private sector is viewed as a logical solution, both for the present and the foreseeable future.

How coworking is fuelling the evolution of innovation centres and districts

In recent years, coworking has helped organisations worldwide accommodate the changing nature of work while disrupting more traditional corporate real estate (CRE) and facilities strategies. This on-demand, technology-enabled access to workspace solves a variety of business needs for companies, which can remain agile without overcommitting on leased or owned space, while also benefitting employees who crave flexibility in how and where they work. Looking ahead, CRE groups will increasingly deploy coworking as a tool in their arsenal for providing flexible space for an agile workforce. The coworking trend has collided head-on with the dire need for companies to innovate in order to survive. This paper describes how some mature companies are attempting to spark this vital innovation by importing elements of coworking space that people value — convenience, curated experiences and concierge — into their own flexible, customised office spaces and dedicated innovation labs. It also explains how others are sending their people to coworking and business accelerator outposts in ‘innovation districts’, where, immersed in a community of creative thinkers and entrepreneurs, they can catalyse the collaboration and innovative thinking that are the lifeblood of every company. These districts can become even more effective innovation incubators by incorporating seamless connections to neighbourhood amenities and resources, and the authors postulate that the strategies that lead to the creation of successful coworking centres and innovation districts are scalable. This means designers can use lessons learned about providing optimal mixtures of physical space and community programming that encourage people to meet, connect and feed off each others’ energy to create more effective workplaces of all sizes.

Corporate real estate and corporate strategy alignment in South Africa

PurposeThis paper aims to discuss whether alignment between corporate real estate strategy and corporate strategy exists for non-property companies listed on the Johannesburg Securities Exchange and what effects alignment has on the firms’ financial performance.Design/methodology/approachThe study was both qualitative and quantitative in nature, with a specific focus on non-property firms listed on the Johannesburg Securities Exchange. The qualitative part of the study involved the analysis of the firms’ annual reports to determine the presence and use of corporate real estate strategies and their alignment to corporate strategy and the extraction of financial indicator data. The quantitative portion of the study involved the use of multivariate analysis, to distinguish and quantify the relationship, if any, between corporate real estate strategy and the identified financial performance indicators. The independent variables were the CRE strategies employed and the dependent variable was the share price. The methods used in this study have been applied before in European and Asian studies; this assisted in ensuring that validity and reliability was achieved.FindingsThe study finds that the most used strategy by firms (47%) is that which facilitates production, operation and service delivery. The Consumer Goods, Healthcare and Telecommunications sectors appear to demonstrate the highest level of alignment. Return on Shareholder Funds has a strong significant positive correlation with share price. Flexibility as a corporate real estate strategy also has a significant positive coefficient, which indicates a positive relationship with share price.Research limitations/implicationsAlthough consistent with results of studies conducted in Europe and Asia, the results of this research may not be applicable to privately held non-listed firms, state-owned enterprises, non-profits and educational institutions. This study also ignores the dynamic external environment in which firms operate and the necessity of firms adjusting their corporate real estate strategy to their changing business strategy.Practical implicationsThese results suggest that the incorporation of corporate real estate strategy in the firms’ corporate strategy formulation has the potential to enhance shareholder value for South African firms. Real estate developers, landlords and owner occupiers would benefit from better understanding the strategic requirements of corporations to ensure that the solutions they provide increase the likelihood of maximizing shareholder return.Originality/valueThe role of corporate real estate strategy in the firms’ corporate strategy formulation has the ability to enhance shareholder value. This research adds to the scant literature on corporate real estate management in South Africa.

Coworking space as a third-fourth place: changing models of a hybrid space in corporate real estate

Purpose This paper aims to review the concept and characteristics of coworking space, especially physical and operational characteristics and its objectives. The authors propose three models of coworking spaces, such as revenue, synergistic and customer contact, which organizations can use as a part of their corporate real estate strategies to build workplace flexibility and resiliency. This paper also addresses research gaps and a research agenda for future research. Methodology This paper is a literature review of academic research focusing on coworking spaces. Because of the relatively limited existing academic literature on the topic, industry sources and white papers are also reviewed. Findings The authors categorized common threads of the existing literature on coworking spaces to emergence and growth trends, the types of users, the type of work to be completed in these spaces, characteristics of coworking spaces and the desired outcomes of coworking space models. Coworking spaces are expected to grow worldwide because of the increase in knowledge-based economy, the “digital nomad” lifestyle and mobile technologies, however, there is limited research on the relationship between spatial and operational characteristics of coworking spaces and users’ collaboration, social well-being and creativity. No research identified fully articulated the nuanced differences between the types of coworking spaces now found in the real estate ecosystem. Research limitations There is limited academic, empirical research focusing on coworking spaces. Thus, the search for literature itself is limited to a small number of papers. Although the authors extended the search to non-academic sources, the conclusion of this study is tentative because of the prematurity of the topic. Originality/value This paper urges the identification of research questions, considering the fast growth of coworking spaces and suggests future research directions based on newly proposed models. Industry practitioners, including building owners, managers, coworking space providers and corporate real estate practitioners, can consider using variations of coworking space concepts and characteristics, as they understand the importance of social needs and connectivity among users. By addressing the history of the coworking space as a concept and business model, and updating the types of models to include new coworking spaces, the authors provide further options to industry practitioners as to how to integrate coworking into their real estate.

Disposal strategies in corporate real estate portfolios

PurposeThe purpose of this paper is to develop an operational framework with guidelines and lessons to improve the current real estate portfolio disposal procedures of freeholds, based on empirical evidence from the banking sector.Design/methodology/approachThe empirical research is based on a comparative analysis of four case studies, representing approximately 80 per cent of the Dutch banking sector. The case studies comprise a systematic document review of corporate business and real estate strategies and semi-structured interviews with decision makers who steer the organisation’s corporate real estate (CRE) portfolio composition.FindingsThis research shows a strong relationship between organisation characteristics, legacy and strategy, disposal drivers and CRE disposal strategies. The weighing of drivers and order of steps in strategy execution strategies largely depend on organisational objectives.Research limitations/implicationsThis paper reports empirical findings from Dutch case studies. To generalise, further research is needed in different legal, financial and economic contexts and in other sectors. This paper suggests a more thorough study of the relationship between space-use efficiency and technological innovation implementation..Practical implicationsThe framework proposes strategy improvements and a proactive approach to corporate real estate management (CREM) to create value through real estate portfolios.Originality/valueThis paper provides a thorough analysis of the CREM of the Dutch banking sector and is applicable to CREM in this and other sectors.

How can universities align bricks with modern learning?

PurposeThis study aims to explore modern learning (ML) scenarios in Dutch higher education towards 2030 and corresponding consequences for facility management (FM) and corporate real estate strategies (CRES) of universities of applied sciences (UAS).Design/methodology/approachThe designing an accommodation strategy model is used to retrieve the match between demand and supply in real estate of Dutch UAS for both present and future. Application of this model resulted in a scenario-planning session with six education experts to determine future demand in education towards 2030. Subsequently, corporate real estate (CRE) managers of nine Dutch UAS were interviewed concerning this subject (one per UAS).FindingsThe results show that CRES of Dutch UAS is only partly aligned to consequences of ML scenarios towards 2030. Most UAS have real estate portfolios that are only partially flexible, so changes in qualitative and quantitative demand due to ML scenarios are not easy to adapt to. The consequences for FM and real estate of the ML scenarios “institute learning” and “mass customization” seem manageable for Dutch UAS, whereas the other ML scenarios, namely, “navigator” and “natural learning”, would create major portfolio problems.Originality/valueThere is an ongoing interest in developments in higher education combined with FM and CRES and its alignment with the corporate vision. Previous studies into modern ways of learning mainly focused on the past and present. However, this study is explorative and explores possible future ML scenarios. These scenarios can contribute to awareness amongst UAS in The Netherlands and abroad regarding their long-term vision. Moreover, these scenarios will help Dutch UAS facility and CRE managers to develop a more future-proof strategic real estate strategy aligned with the corporate vision.

Corporate real estate strategies and organizational culture

PurposeThe purpose of this paper is to investigate how strategic corporate real estate (CRE) management varies across different types of organizational culture. Additionally, the authors examine how a set of well-established strategies is categorized by CRE executives and investigate whether there have been any changes in priorities of managers’ rating in importance of these strategies compared to a post-GFC study. Design/methodology/approachA wide-scale survey of CRE managers was undertaken in summer 2016. Two key components of the survey are namely importance scoring of CRE strategies after the framework of Gibler and Lindholm (2012) and organizational culture assessment based on the competing values framework of Cameron and Quinn (2006). Analysis of CRE strategy importance is undertaken based on the average score comparison per each cultural family, and additional features are reported based on the industry sector, firm size and CRE department size. Principal component analysis is used to provide statistical evidence on the grouping of CRE strategies by practitioners. FindingsEmpirical evidence points toward a clear division on the organizational culture dimension that differentiates effectiveness criteria of flexibility and discretion from stability and control. More specifically, clan and adhocracy cultural types prioritize employee-centric CRE strategies, whereas hierarchy and market cultures consider “Reducing real estate cost” as their single most influential strategy. Research limitations/implicationsThe competing values framework has been adapted from the original ipsative scoring process to reflect the fact that only one respondent per firm assesses their organization’s culture. Practical implicationsThe findings of this study are useful to CRE managers striving for maximum strategic fit within their firms as they unveil clear patterns of CRE strategy prioritization among different organizational culture types. Originality/valueTo the authors’ best knowledge, this is the first study that analyzes the inter-relationships among CRE strategies and organizational culture variations. Additionally, the paper provides a categorization of CRE strategies through statistical methods that follow a clear pattern based on the scope of each strategy.

Changing dynamics of corporate real estate: The rise of coworking spaces

The past three years have seen a dramatic increase in coworking spaces across Asia, including India. The concept of coworking was triggered in the West by the global financial crisis of 2007–08, while Asia has just begun to embrace the change. There is an excessive focus on creating more efficient and cost-effective solutions for start-ups, small and medium enterprises (SMEs) and corporates. These flexible, technology-smart, state-of-the-art facilities attract millennial occupiers who like to work together in a vibrant environment. This paper explores the evolution of coworking space in India and discusses its impact on corporate real estate strategies in the present age of digital disruption, as the concept is likely to progress towards becoming a subset of the commercial real estate industry in the coming years. From the advent of the idea among start-ups and freelancers, these workspaces are attracting the attention of larger organisations as well. As operators and developers experiment with various business models for best efficiency and cost optimisation, the coworking era is likely to be an interesting period.

An Expert Review on Corporate Real Estate Strategies for Hotel Industry in Sri Lanka

Corporate Real Estate (CRE) is the fifth corporate resource after the capital, people, technology, and information. As per the views of the industry experts CRE is identified as the second most expensive cost after labor in many occurrences. The contribution of CRE for overall business activities cannot be restricted to one specific business function where inter-functional use is evident in the overall business setting. To this end, CRE is identified as a diversified resource. The academic discussion on CRE began with scholarly works of Zeckhauser and Silverman (1983) and later CRE developed as a strategic business discipline with the pioneering erudite work on strategic CRE of Nourse and Roulac (1993), De Jonge, (1996) and Lindholm and Levainen (2006). However, all these CRE strategies were tested and reviewed in the European context ignoring the diversity of Asian business practices, nature of the industry and the level of CRE holding. Thus, adopted CRE strategies are required for contemporary management applications in the Asian region. In this context, the aim of this study is to review expert opinion on CRE strategies for hotel industry in Sri Lanka. The expert opinion used to evaluate possible CRE strategies and its dimensions for Sri Lankan hotel industry. The expert panel includes senior and middle-level managers of hotels, senior academics specializing in the hotel industry, representatives of Sri Lanka Tourist Development Authority and retired veterans of the hotel industry. The Analytic Hierarchical Model (AHP) was used as the main analytical tool to identify criteria weights of identified CRE strategies for hotel industry in Sri Lanka. The finding contributes CRE literature of hotel industry in Sri Lanka and makes empirical validation of CRE strategies for hotels in real world scenario.

Corporate real estate black swan strategies: Beyond probability and resilience

Corporate organisations operate in a dynamic competitive global environment where real estate decisions form an important part of a successful business operation. Fundamental considerations cover the drivers of possible disruption from core economic activity, structural change and unexpected (black swan) events. With documented increases in the frequency and magnitude of unforeseen, rare and extreme black swan events, this research examines an antifragility corporate real estate strategy that looks beyond likelihood and resilience to opportunities to manage and embrace key adverse known unknown random black swan events. Suggested strategies including modular locational operation units, knowledge sharing and real estate partnerships can form part of an antifragility real estate framework and assist global organisations to succeed where competitors fail in a world affected by increasingly large, highly improbable and unpredictable events.

Corporate real estate strategies: the Nigerian experience

Purpose– The paper aims to contribute to the empirically scarce literature on corporate real estate management (CREM) strategies by providing meaningful insights on the different strategies likely to contribute to business performance in a developing country like Nigeria.Design/methodology/approach– Primary data collected using questionnaire administered on property managers of the 105 business organisations in the list of registered companies with the Nigerian Stock Exchange were used for the study. The questionnaire elicited information on the real estate holding pattern and the adopted strategies for acquiring and managing real estate assets. The data collected were analysed using percentages, mean and proportion method.Findings– The study established that 41 per cent of the organisations were public organisations. Others were private companies (31 per cent), government departments (18 per cent) and multi-nationals (10 per cent). The result indicated that 31.8 per cent had no CREM strategy. Strategies used were: cost reduction (18.75 per cent), facilitate production (20.17 per cent), flexibility (15.5 per cent), promote human resource objectives (10.86 per cent), promote the marketing message (4.33 per cent), promote sales and selling delivery (18.67 per cent), facilitate managerial process and knowledge (7.5 per cent) and capture real estate value (6.5 per cent). The study concluded that CREM is a useful tool that the organisations can make effective use of to improve their performance.Research limitations/implications– Limiting the scope of the study to the perception of the respondents could reflect an element of bias and might pose a great challenge to the representativeness. Also, the use of closed question questionnaire may limit the validity of the results.Practical implications– The study has major implications on business performance in Nigeria. There is the need for corporations to reappraise their real estate strategy and realign it with their corporate objective. There is also the need for Nigerian Institution of Estate Surveyors and Valuers to train its members for contemporary business requirements.Originality/value– The paper is a useful guide to corporate real estate managers in developing countries towards using real estate strategies to minimize the overall cost of their companies.