CRE critique and expert interpretation

Citation

(2009), "CRE critique and expert interpretation", Journal of Corporate Real Estate, Vol. 11 No. 3. https://doi.org/10.1108/jcre.2009.31211cab.001

CRE critique and expert interpretation

Article Type: Review From: Journal of Corporate Real Estate, Volume 11, Issue 3

A review of Journal of Corporate Real Estate, Vol. 11 No. 3, 2009

By M.C.R. Benjamin Chirgwin, Global Corporate Services, Seattle, Washington, USA; CB Richard Ellis, El Segundo, California, USA.

This section presents the views of an expert and does not necessarily reflect those of the Editor, the Editorial Board members or Emerald. It has been published in the Journal of Corporate Real Estate as an opinion piece and is completely separate from the double-blind peer review process the journal operates.

Anthony Guma, Jason Pearson, Kate Wittels, Richard de Neufville and David Geltner (2009), “Vertical phasing as a corporate real estate strategy and development option”, Journal of Corporate Real Estate, Vol. 11 No. 3

As a member of the Corporate Real Estate community, I am constantly looking for ways to build greater flexibility into the real estate portfolios that enable the core businesses we work for. This paper on vertical phasing presents a sound case for how incorporating this approach into your portfolio management practices can reduce downsize exposure, while increasing upside potential by allowing for expansion when business conditions are favourable. Further, it provides the additional advantage of improving the operating efficiency of the core business by creating the opportunity to keep staff in one building vs multiple locations. This is particularly valuable for corporations based in urban settings where “land banking” is not feasible.

This paper demonstrates, through in-depth case studies, how this strategy has been applied to add value to companies. The paper on the technical feasibility, planning challenges, option valuation and financial analysis establish credibility to this strategy by outlining both pros and cons in each of these topics. For example, the “Technical feasibility” section elaborates on not only the need to design the infrastructure to support the envisioned building but also the logistics of building a new structure on top of a fully functioning building. Another important point is properly valuing the vertical phasing option. The author explains why the traditional financial analysis does not sufficiently value the option and how to use Monte Carlo simulation to calculate financial outcomes across the options being explored to determine the proper course to take. For those investigating the development of a new building to support a long-term organizational need, this is a must read paper!

Linda Too and Michael Harvey (2009), “Accommodating ‘accelerating’ time: the use of timescapes in corporate real estate strategies”, Journal of Corporate Real Estate, Vol. 11 No. 3

Although time is a precious commodity for us all, this paper brings to the forefront the need to incorporate timescape into the formation of all corporate real estate strategies. It achieves this by first outlining the importance that the time variable has on today’s hypercompetitive business environment and how companies are using the concept of timescapes as a competitive advantage for their business. The authors’ introduction of this concept and call to action for our industry to explore new ways to apply this concept, are important steps to better aligning the practices of Corporate Real Estate organizations with the operating needs of the businesses they support. This is a “must read” for all those who are responsible for developing corporate real estate strategies.

The paper also contains breakthrough concepts around the relationship between time and the company’s real estate assets and how a corporate real estate professional can apply these unique concepts to improve the operational effectiveness of our organizations and portfolios. With time frames getting shorter in the global business environment, we are all challenged with how to deliver more in less time. This forces us to embrace concepts around “zero-time” workplace strategies, life cycle management and process engineering practices in the areas of project management. Within this paper, these concepts, and others, are elaborated on as ways to provide the businesses we support with work environments that could increase flexibility, enhance creativity and improve operational efficiency

Sandra Brunia and Anca Hartjes (2009), “Personalization in non-territorial offices: a study of human need”, Journal of Corporate Real Estate, Vol. 11 No. 3

Traditionally, Corporate Real Estate groups pride themselves on developing work place solutions that are both efficient and effective at enabling the core business. The process generally focuses on the needs of the end-user relative to the work process, required activities and workplace standards. The authors of this paper have conducted research that indicates that these efforts may not produce the results we are seeking because the process often ignores the basic human need of personalization. Their research builds a compelling case that our quest for improved space utilization through non-territorial work environments can often negatively impact employee morale and productivity which, in turn, reduces the operating efficiency of the core business.

Through qualitative interpretive research, the authors seek to find out more about the human need for personalization and how our evolving workplace concepts often seem to be contradicting concepts. This paper begins by providing an overview of the concept of personalization which has its roots based in environmental psychology. Moving on, the authors elaborate on this concept by illustrating that personal space is needed to express one’s identity and to create a sense of workplace identify. The research also explains that opinions on the value of non-territorial offices vary significantly between management and the employees. Based upon these findings, the paper outlines how some companies have modified their non-territorial workplace policies, procedures and change management practices to help employees personalize their workspace while maintaining the flexible work place. This, in turn, has lead to improved employee morale and productivity.

This thought-provoking paper challenges us all to better understand how the environments we promote impact the business we support and how, by incorporating the need for personalization of space into our practices, we can enhance the value we bring to our clients.

Hikari Kato, Linda Too and Ann Rask (2009), “ Occupier perceptions of green workplace environment: the Australian experience”, Journal of Corporate Real Estate, Vol. 11 No. 3

As active members of the real estate industry, we are well aware of the advantages of green workplace environments socially and psychologically. However, as the authors of this paper point out, we often times perceive these benefits to be greater than the individuals actually operating in these environments. This paper provides the reader with empirical findings of the strengths and weakness of the growing trend toward building sustainable work environments.

Although the research is limited to Australia and the findings are based upon a relatively small data sample, the findings still offer valuable insight into this topic. However, since the survey was limited to only those buildings that have received “Green Star” ratings and that had been in operation for more than 12 months, the survey was deemed to provide a reasonable basis for the general findings. Further, to gain insight into the viewpoints of both management and employees, each group was surveyed separately and asked different questions. For example, the manager’s sessions focused on the company’s general profile, satisfaction levels, functionality and how the new workplace has affected the employees. On the other hand, employees were about their knowledge of their green workplace, its functionality and its impact on the health and productivity. Several interesting findings resulted on both the strengths and weaknesses of green workplaces which are highlighted. Not surprisingly, one of the weaknesses had to do with communication and the need for an enhanced commissioning process. This paper outlines the need for a call to action for all those considering occupying green workplaces to understand the benefits, and risks, from not only our own perspective, but also from those that will occupy the environment.