 Affiliated faculty Working papers Research notes Conference External links |
||
 |
||
Value
Adding Attributes of CREM
URAG Working Paper #04-09
Value Adding Attributes of CREM (pdf)
by Anna-Liisa Sarasoja, Karen M. Gibler and Kari I. Leväinen, October 2004
Keywords: Added Value, Core Business, Real Estate Strategy
The corporations' primary aim is to add to the wealth of investors/owners. In order to achieve this aim the corporation sets strategic goals for its business activities. This defines the demands for corporate real estate, which should be linked to the corporations' strategic goals. The real estate strategy is enacted through asset management, property management and facilities management. Traditionally, corporate real estate measures have focused on direct costs of providing space. However, the realization that both tangible and intangible assets are important to corporate real estate management's successful support of the core business necessitates new techniques and tools for measuring, amongst other things, performance, productivity, usability and functionality. This paper discusses possible real estate strategies that could add value to the corporation core business, operating decisions that support the real estate strategies and broader ways to measure whether the real estate operation is adding value through making decisions in support of each strategy. The results presented in this paper are based on a wide theoretical survey and more than 30 interviews with corporate real estate organizations in the USA and Europe.
Comments and questions regarding this paper may be directed to Geoffrey Turnbull at gturnbull@gsu.edu.