Real Estate Strategies Research Articles

Reshaping the corporate landscape: Navigating changes in real estate strategies

The changing corporate landscape, influenced by global events and shifting workforce dynamics, has led to a new era of workplace adaptation and innovation. The COVID-19 pandemic has catalysed a significant shift towards remote work, with a profound impact on corporate real estate (CRE). As we navigate a post-pandemic world, it is clear that the traditional office model has transformed into a more flexible and multifaceted concept. The rise of remote and hybrid work has prompted businesses to rethink their real estate strategies, resulting in a surge in office vacancies and the need for creative solutions. Companies are at a crossroads of reinventing their physical workspaces and redefining their organisational cultures to address challenges such as rising delinquency rates, employee engagement and well-being. In the current business environment, organisations are prioritising the alignment of their future of work strategies with their mission and vision. They are taking advantage of their unutilised office spaces to reduce expenses, enhance the employee experience, promote sustainability and facilitate hybrid work arrangements. This transformation, however, necessitates a re-evaluation and optimisation of their real estate utilisation and functionality to cater to the needs of their ever-changing workforce. To accomplish this, corporate real estate professionals are looking for ways to adopt crucial strategies that foster efficiency and effectiveness in the workplace. This paper delves into these strategies and provides valuable insights into their successful implementation.

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.

Real estate management and strategies: The next decade

Real estate management and strategies: The next decade

The impact of the COVID-19 crisis on global real estate capital flows

PurposeCOVID-19 has had a significant global impact at many levels, including an impact on global real estate capital flows. This paper examines the impact of COVID-19 on global real estate capital flows over 2019–2022 to clearly articulate the extent of this impact on global real estate capital flows across regions, countries, major cities, real estate sub-sectors and by major real estate investors. Drivers of these global real estate capital flow changes are also identified. The strategic real estate investment implications of this impact are highlighted, as well as the implications going forward concerning the global real estate strategies for the real estate portfolios held by institutional investors.Design/methodology/approachTo assess the impact of COVID-19, the Real Capital Analytics (RCA) database of global real estate transactions over 2019–2022 is used to drill-out critical details on commercial real estate transactions to explore specific trends in global real estate capital flows in this period of the COVID-19 crisis. This includes real estate capital flows to specific regions, countries, cities, real estate sub-sectors as well as the role of major real estate investors.FindingsThe impact of COVID-19 is clearly shown with the major decline in global real estate capital flows in 2020, with a strong recovery in 2021. Reduced levels of real estate capital flows in 2022 reflect different risk dynamics, where 2022 has seen investors move on from the COVID-19 environment. In 2022, the risk of COVID-19 for real estate has been replaced by global real estate risk factors such as inflation concerns, geopolitical tensions, economic growth concerns, increased cost of debt issues and supply chain issues. This sees COVID-19 now rated as only the 6th most important risk factor in real estate investment decision-making for real estate investors in the Americas, Europe, Middle East and Africa (EMEA) and Asia–Pacific.Practical implicationsThis research has clearly shown the extent of the impact of COVID-19 on global real estate capital flows, as well as identifying the drivers of these real estate capital flow changes. It highlights that real estate investors have moved on and are now prioritising new risk factors ahead of COVID-19 risk. These critical risk factors reflect more recent financial, economic and geopolitical issues, which are key issues in real estate investment decision-making going forward. Investors need to structure these new risk factors into their real estate investment decision-making for the ongoing management of their domestic and international real estate portfolios.Originality/valueThis paper is the first published empirical research analysis of global real estate capital flows during the COVID-19 crisis. This research provides major insights on real estate investment decision-making during this crisis and the strategic changes seen in acquiring real estate portfolios in response to this major global crisis. The change in real estate risk priorities in 2022 as real estate investors move on from the COVID-19 environment is also identified and is clearly reflected in the 2022 global real estate capital flows.

Creating a strategy framework for investor real estate management

PurposeThe aim of this paper is to introduce a framework that helps to identify strategic themes on which real estate investors form their strategies. A holistic approach to strategic management in real estate management has enjoyed popularity in corporate real estate research, while similar research has been lacking from the investor-based real estate management.Design/methodology/approachThe research design consists of two main parts: 1) formulating propositions based on existing literature and 2) attempting to validate the propositions through a qualitative interview study with major real estate owners in Finland.FindingsThe main finding is that the current real estate investors reflect the transient nature of competitive advantages and assess their strategies accordingly. The companies consider the traditional profitability and revenue growth aspects of their business but also a more long-term future growth dimension. As an outcome, the investors base their strategies on eight strategic themes which are “Innovation”, “ESG”, “Marketing and sales”, “Financial management”, “Leasing management and tenant satisfaction”, “Competitive environment and portfolio management”, “Outsourcing and strategic partnerships” and “Cost and operation optimization”.Research limitations/implicationsThis paper opens opportunities for future research concerning different strategies in real estate investment business and their impacts.Practical implicationsThe presented framework provides support for real estate investors to create real estate management strategy or to evaluate their current strategy and to recognize operational actions and decisions that are relevant for their strategy.Originality/valueThis paper provides an extension to corporate real estate (CRE) literature by showing that the CRE theories are adaptable to real estate investment and provide value for their strategic management. This paper also contributes to real estate investment literature by providing a well-founded and empirically contested strategic management framework, the IREM framework, for identifying strategic themes on which real estate investors form their strategies.

The increasing importance of the alternate real estate sectors for institutional investors

The alternate real estate sectors (including healthcare, data centres, self-storage, university student accommodation and infrastructure) have taken on increased importance in recent years with institutional investors, as they have sought to broaden their real estate sector exposure. This has been driven by key real estate investment factors, including the changing global demographics, advances in technology and the impact of COVID-19. Importantly, this trend is expected to continue and has a major influence on real estate management and strategies by institutional investors going forward. Using a range of alternate real estate sectors across several countries (US, UK and globally) in the direct, non-listed and listed real estate spaces, this paper examines the risk-adjusted performance and portfolio diversification benefits of these alternate real estate sectors compared to the standard asset classes in the portfolios of institutional investors. The real estate management and strategic implications for institutional investors going forward are also assessed.

Airport real estate values: What drives growth?

This paper offers guidance to airport managers who are evaluating their real estate and land asset management strategies. Through an international benchmark study of airport property values, it identifies the key factors of growth in land prices and rent levels, and quantifies the resulting increase in real estate values at the airport and in the surrounding airport area. The paper has three key findings. First, airport areas experience a long-term increase in property values across all land use categories, with the sharpest price increases taking place in the first ten years of development. Second, direct airport access generates a significant price premium, with commercial and industrial plots located in airport areas achieving higher property values and rent levels compared to competing locations that do not have direct airport access. Finally, eight key factors of growth that lead to long-term increases in airport property values are identified. The paper concludes with four key questions that decision makers should consider when evaluating their future real estate strategy.

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.

Information strategy in view of enterprise real estate futures : The evolving role of information systems in corporate real estate and facility management

In just a few days in March 2020, the planned evolution of the workplace became a radical revolution, quickly uncovering which organisations were prepared to cope with the fast-changing circumstances within their workplace concepts, including IT and facility management (FM), and which were not. This paper explores five key workplace developments and three key technology developments that will affect workplace and real estate strategy this decade and their influence on information strategy and the role of information systems. Together these workplace developments will shape the future of the workplace into a distributed, carbon-neutral and resilient workplace while these technology developments will shape an updated workplace information strategy and related systems to enable workplace digitisation, mobility and resilience. FM experienced accelerated change around the workplace and is now on a fast path to adopting mobile, digitisation and resilience principles. In view of these developments, information strategy should be prepared to drive these changes, not only to support the development of the organisation into a distributed and carbon-neutral workplace today, but also to prepare workplace resilience for future disruptions. Embracing diversity and managing complexity via an open platform approach is expected to be key in an information strategy that supports this future of the workplace.

The 15-minute city: interpreting the model to bring out urban resiliencies

In a globally connected world and increasingly smart cities, the demand for living in a physical neighborhood where one can walk and cycle among familiar people and a variety of services is always alive. It is a quality of life which meets the deep desire of community and place identity. In this regard, the 15-minutes city is the contemporary version of the classical “human measure”. The model offers a refreshing chrono-centric vision for the city that prioritizes people’s time, energy and physio-psychological health by relieving their daily commutes. The recent pandemic clearly showed this potential; the daily outdoor movement by soft mobility allowed for social life even during lockdown periods. The paper is subdivided into two main components: a theoretical discussion of the 15-minute city model as part of a broader sustainable urban planning narrative, and a practical application mapping the potentials of Milan as a 15-minute city, focusing on population distribution and urban fabric structure as a measure of performance evaluation. The emergence of the 15-minute model rebalances the building volume concentration of the consolidated Transit Oriented Development paradigm; suggesting an innovative and more articulated vision. The 15-minute approach, rooted in the organic planning of the ‘60, is pushed by the covid-19 emergency, making treasure of the experience of urban regeneration masterplans of the last decade. The approach falls in line with real estate strategies for place making, which aim to create new sustainable urban districts that are pedestrian oriented and carbon free. After interpreting the international framework of urbanism trends with respect to the 15-minute model, the paper focuses on the Milan case. The potentials for neighborhoods across the city of Milan is investigated to conform to an inclusive 15-minute city model, using fully-fledged and innovative mapping of proximity. This analysis aims to explore the resilience of urban resources to support walkable living environments with a guaranteed basic level of accessibility to daily needs by walking. The support to this model offered by soft mobility modes and micro-mobility devices is also raised. The results show, in a number of urban neighborhoods, a limited level of walkability although related to a spatial city structure which is able to be regenerated as a dense and effective network of 15-minute neighborhoods through tactical urbanism actions on existing open spaces and soft mobility policies, combined with long term strategies (infrastructure capacity and digital upgrading). It is a first methodological test which opens up the research towards a new inclusive concept of accessibility.

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 -

“Covid-working”: what to keep and what to leave? Evidence from an Italian company

PurposeThis paper aims to explore the extent to which Covid-19 has challenged work habits and outcomes. The authors argue that after the lockdown period workers have been experiencing a new work mode called “Covid-working”. The aim is to provide a first interpretation of this phaenomenon and elaborate on future real estate strategies and workplace policies based on this experience.Design/methodology/approachUsing survey data, this research analyses Covid-working in a large-sized company in Italy. The survey was answered by 90 employees and addresses three domains: locations of work; a comparison between work-from-home (WFH) and work from the office; and outcomes of Covid-working vs office-working.FindingsWith Covid-working, the workers of the case company drastically changed their traditional work from the office approach to pure WFH. While this abrupt switch might generate difficulties in adaptation, this working practice was generally appreciated by this company’s workers. Positive and negative outcomes of Covid-working confirm previous studies on remote working. Recommendations on multi-location of work, new value for the headquarters and diversity empowerment open up avenues for future real estate strategies.Originality/valueObservations on Covid-working are still limited and mainly appear on grey literature, due to the newness of this phaenomenon. Empirical studies such as the proposed one can increase companies’ awareness of the positive and negative outcomes of this experience and support their future workplace strategies.

21st‐century transnational real estate development: What, where, who, how and why?

AbstractIn this paper, we review the emerging geographical literature dealing with large‐scale transnational real estate development projects (TREDs). Predominantly geared towards (often imagined) upper middle classes through eye‐catching and mixed‐use projects, the distinctive feature of TREDs is that they are facilitated by a formative transnational investor/developer. Based on a literature review and an analysis of fDi Markets data, we discuss the nature of TREDs, where they can be found, which actors and companies are mainly responsible for them, how they emerge and materialize (or not), and why they are so relevant in contemporary economic geography. It is argued that TREDs are both characteristic of and contribute to the rise of authoritarian urban development practices. We furthermore show that both fictitious and symbolic capital play a role and that real estate and geopolitical strategies are inextricably linked with one another. Given that interscalar dynamics between the main facilitators of TREDs are still relatively understudied within economic geography, we end with a call to develop more in‐depth perspectives on these matters.

Urban growth and indigenous land. Real estate strategies and urban dynamics in Temuco (Chile)

ABSTRACT This manuscript reviews the urban growth process in the Temuco-Padre las Casas conurbation (Chile) on indigenous land, highlighting three topics of great interest. First, the ability of legislation to regulate the protection of indigenous land. Second, the role played by the real estate sector as the main protagonist of urban expansion on indigenous land. Finally, the subsidiary role of those who should be the main actors: indigenous communities. The consequence is a process of material and symbolic dispossession of the Mapuche population, which reinforces the dynamics of settler colonialism existing in the region and presents parallels and divergences with other international cases. For this, the methodology used combined quantitative data with qualitative information, spatializing the former and giving greater weight to the latter as an interpretive key. The results reflect a disagreement between a legislation incapable of regulating urban growth and responding to indigenous demands, and a reality marked by increasing pressure on the Mapuche population and lands. This shows a situation that is present in Chile but can be extrapolated to other countries in the region.

Age Segregation, Intergenerationality, and Class Monopoly Rent in the Student Housing Submarket

AbstractStudentification—the concentration of students within a particular neighbourhood and associated impacts—represents a “generationed” or age‐segregated housing submarket defined by a distinct life course stage. I analyse this submarket through the lens of David Harvey’s concept of class monopoly rent, a critical theory of residential submarkets, drawing on semi‐structured interviews with key informants and students in Waterloo—Canada’s largest private purpose‐built student accommodation market. Planning interventions, real estate strategies, and neighbourhood politics have intertwined to enable the extraction of class monopoly rent from a clearly delineated student housing submarket. I show how studentification, and the age segregation it entails, is produced by and serves to reproduce capitalist urbanisation, illustrating temporal power dynamics of rent. A radical political response to the impacts of studentification on students and other residents alike must therefore adopt an intergenerational perspective that confronts class and life course dimensions of the process simultaneously.

Market Adoption of Healthy Buildings in the Office Sector: A Global Study from the Owner’s Perspective

The emergence of human health and well-being concerns provide market differentiation opportunities for real estate companies globally. Our paper examines the market adoption of healthy office buildings by looking into how a healthy office building is defined and measured in the marketplace. What is its financial value for tenants and owners? What are real estate owner's perspectives and strategies for this emerging market? We synthesized the existing body of academic and industry literature, and conducted interviews with executives from 15 real estate corporations that own office buildings across the globe. The results from literature review indicate that there is some early evidence of a real estate price premium for specific indoor environment quality (IEQ) features. At the level of health-focused building certification systems (BCS), there is no empirical and quantitative research on healthy building’s financial performance, except theoretical return on investment (ROI) models. The results from owners’ interviews confirm that the scarcity of empirical evidence linking healthy building attributes to financial returns presents the mainstream adoption barrier for building owners. Owners are adopting diverse healthy building attributes that are driven by end-user’s health and wellbeing demand regardless if they are adopting health-focused BCSs. Their strategies for pursuing the healthy building market range from risk mitigation to proactive pursuit of new growth opportunities. Private equity funds and real estate investment trusts (REITs) firms tend to focus on the former, while direct real estate investment firms are more likely adopt proactive strategies to lead the adoption curve.

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.

Practical Applications of Another Look at Private Real Estate Returns by Strategy

<h3>Practical Applications Summary</h3> In <b>Another Look at Private Real Estate Returns by Strategy</b>, from the Special Real Estate Issue 2019 of <b><i>The Journal of Portfolio Management</i></b>, authors <b>Mitchell A. Bollinger</b> and <b>Joseph L. Pagliari, Jr.</b>, demystify the levels of risk-adjusted, net-of-fee returns that investors earn across value-add and opportunistic real estate funds, in comparison to the returns of core-strategy funds. The article also examines the fee structures across these various real estate strategies, and evaluates whether or not they are justified. They conclude that core strategies have outperformed both value-add and opportunistic strategies on a risk-adjusted net-of-fee basis.