Journal of Corporate Real Estate

Methods for evaluating office occupiers' needs and preferences : Table of Contents

Jessica Niemi, Anna-Liisa Lindholm — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – Corporate occupiers are among the important interest groups in the real estate business. The whole value network in the real estate sector, consisting of, e.g. developers, investors, and service providers depend on the occupier organizations and meeting their needs and preferences. The purpose of this paper is to investigate the methods applied by the parties in the real estate sector in identifying and evaluating office occupiers' needs and preferences regarding the physical, virtual, social as well as financial elements of the workplace. Design/methodology/approach – Based on theme interviews with selected Finnish organizations, the applied methods for evaluating office occupiers' needs and preferences are analyzed and presented. The applicability of the methods is evaluated by a set of criteria based on a literature review and the interviewees' responses. Findings – The paper presents an efficient and relevant evaluation of the applied methods in matrix form. Additionally, recommendations for the development of the methods are suggested. Practical implications – Analyzing the occupiers' needs and preferences related to physical, virtual, social, and financial elements of offices requires applicable methods. The methods should enable the parties in the real estate sector to analyze the direction of the real estate markets as regards the different elements. Originality/value – The paper provides a classification and analysis of the methods applied to identify office occupier organizations' needs and preferences. Suggestions for further development of the methods are presented enabling a comprehensive analysis of needs and preferences.

Ten years of sale-and-leaseback transactions in The Netherlands: Large-area office space contract rent some one-fifth above market rent : Table of Contents

Aart C. Hordijk, Dirk Rompelman, Leonie Koerhuis — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – The purpose of this paper is to give an overview of the sale-and-leaseback transactions in The Netherlands over the past ten years, and to compare the rents and yields in those transactions with what is common on the market at that moment. Design/methodology/approach – The method chosen is a straight mathematical calculation, the only possible way at this initial stage. A unique dataset provided by Vastgoedmarkt is used for this paper. Findings – Of the sale-and-leaseback transactions, 60 percent are concluded against a higher rent than the market rent, and contract rent for the biggest areas is on average concluded at 17.4 percent above the market rent. Research limitations/implications – Because of the incompleteness of the reporting of the transactions and the lack of transparency in this area, further analysis is necessary. Practical implications – When entering into a sale-and-leaseback transaction, the seller and the buyer in particular should be much more aware of the circumstances on the market. Originality/value – Prior papers on sale-and-leaseback generally do not consider rents and there are almost no recent papers. This paper does focus on rents and uses data from the past ten years.

Responsibility for and performance of corporate real estate functions : Table of Contents

Steffen Hartmann, Peter Linneman, Andreas Pfnür, Deborah Moy, Boris Siperstein — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – The purpose of this paper is to identify different organizational models concerning both the functions and responsibilities assigned to corporate real estate (CRE) professionals in European and North American companies, as well as to determine the factors that influence the occurrence of these different management models. Design/methodology/approach – An empirical survey between 74 major European and 38 North American companies from the banking, energy, telecommunication, and transportation and logistics industries is conducted. Findings – Five typical models describing the allocation of responsibility of real estate functions within a company and the performance of those responsibilities are identified. Only weak statistical associations are found between these models and certain contextual factors that may influence the choice for a specific model, as well as between the models and certain achievements in CRE. From this, the paper infers that there does not exist one “best practice” CRE management model in a specific situation as often is stated, but instead, various promising organizational models seem to exist. Originality/value – This paper contributes to a deeper understanding of the organizational variables “responsibility” and “performance” of real estate functions and presents a differentiated view compared to existing research. Specifically, this is the first paper that analyzes and attempts to categorize the various existing approaches to the allocation of responsibility for CRE functions, as well as accountability of the corresponding performance. As such, this paper can therefore serve as an initial point for further research on this topic.

Corporate branding: an exploration of the influence of CRE : Table of Contents

Rianne Appel-Meulenbroek, Dave Havermans, Ingrid Janssen, Anneke van Kempen — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – The purpose of this paper is to understand how corporate real estate (CRE) can add value to corporate branding and how corporate branding strategies for CRE can be determined. Design/methodology/approach – The paper presents a theoretical background for corporate branding and real estate and links these two concepts through interviews with 19 CRE managers of service providers. Findings – Analysis of the relationship between CRE and the corporate brand brings forward two links: CRE influences the perception of the corporate brand directly and indirectly (via employee behaviour). Corporate identity and its six characteristics (structure, strategy, culture, communication, behaviour and design) formed a useful tool to determine the proper branding strategy for an organization. Especially, “design” and “communication” define the way CRE should communicate the corporate brand. Two location issues are seen as the most important CRE aspects to support branding strategies. Research limitations/implications – The field research is explorative, so it only studies a small sample of four types of service providers: real estate brokers, architects, lawyers and multinationals. Practical implications – Understanding the key factors of CRE that orchestrate the direct and the indirect influence on the corporate brand provides guidelines for CREM for designing CRE that supports a successful corporate brand. Originality/value – Research done so far on corporate branding highlights the importance of CRE for corporate branding, but does not explicitly discuss the importance of (all) different CRE aspects.