Value of assets

Hilde Remoy, Aart Hordijk, Rianne Appel - Meulenbroek

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

6 Citations (Scopus)

Abstract

This chapter focuses on the financial side of Corporate Real Estate (CRE). First, the effect of ownership or leasing on the balance sheet is discussed. In addition, the lifecycle effects of ownership are looked at in connection with renovation, restructuring or alternative use. Particular attention is paid to the importance of regularly valuing CRE at market value and the financial risks of not valuing and not strategically managing CRE. The chapter shows that CRE is not always easy to value. Buildings may have specific characteristics without any particular market value, or which are only valuable for similar enterprises and specific use. The value might also be influenced by industry trends or labour costs, followed by shifts of the company’s activities to other locations or even other countries. Consequently, active CRE financial management should have a high priority. Involvement in business plans and decisions is essential to fulfil that role.
Original languageEnglish
Title of host publicationFacilities management and Corporate Real Estate management as value drivers
Subtitle of host publicationhow to manage and measure added value
EditorsP.A. Jensen, T. van der Voordt
Place of PublicationLondon
PublisherRoutledge Taylor & Francis Group
Pages239-253
ISBN (Electronic)978-1-315-69515-0
ISBN (Print)978-1-138-90718-8
Publication statusPublished - 2016

Keywords

  • CRE ownership and lease
  • valuation
  • alternative use
  • value monitoring
  • CRE
  • financial risk

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