Lifting the Lid on the Black Box of Corporate Real Estate Decision Making; dealing with surplus property

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Abstract

This paper seeks to identify the variables that influence Corporate Real Estate (CRE) decision-making and gauge their relative importance to each other, thereby understanding the consequent challenges/implications for CRE Managers. Interviews were undertaken with experts using the Causal Network Elicitation Technique to create Decision Networks from the variables they identified for the specifically defined scenario: dealing with surplus property from a change of business strategy. These networks illustrate the complexity of the mental representations required for the realignment of the CRE portfolio. The identified key variables are more extensive than alignment theory suggests (financial stakeholders only), as additional variables include risk, lease accounting, costs, financial analysis, business metrics and motivational drivers. The latter indicates the importance of self-esteem and peer recognition for CRE Managers and financial benefits for the C-suite. Accordingly CRE alignment needs to incorporate these more extensive variables both in terms of strategy creation and implementation.
Original languageEnglish
JournalJournal of European Real Estate Research
VolumeXX
Issue numberXX
Publication statusAccepted/In press - 19 Oct 2020

Keywords

  • Corporate Real Estate
  • decision-making
  • alignment
  • decision networks
  • mental representations

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