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Modelling the Value Adding Attributes of Real Estate to the Wealth Maximization of the Firm

Author

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  • Anna-Liisa Lindholm

    (Helsinki University of Technology, Institute of Real Estate Studies, P.O. Box 1200, FI-02015 HUT, Finland)

  • Karen M. Gibler

    (Georgia State University, Department of Real Estate, P.O. Box 4020, Atlanta, GA 30302-4020)

  • Kari I. Levainen

    (Helsinki University of Technology, Institute of Real Estate Studies, P.O. Box 1200, FI-02015 HUT, Finland)

Abstract

Firms develop strategies to help them achieve their primary goal of maximizing the wealth of the shareholders. These strategies should define the supporting role corporate real estate management plays; however current theory and practice do not adequately identify the direct and indirect methods by which corporate real estate management (CREM) adds value to the firm. We develop a model of how real estate adds value to the firm to help fill this void. This model can be then used to develop more precise and complete metrics to measure the value real estate adds to the firm.

Suggested Citation

  • Anna-Liisa Lindholm & Karen M. Gibler & Kari I. Levainen, 2006. "Modelling the Value Adding Attributes of Real Estate to the Wealth Maximization of the Firm," Journal of Real Estate Research, American Real Estate Society, vol. 28(4), pages 445-476.
    • Handle: RePEc:jre:issued:v:28:n:4:2006:p:445-476
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    References listed on IDEAS

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    Cited by:

    1. Tatsuo Oi, 2011. "The Development of Corporate Real Estate Management Research in Japan," ERES eres2011_342, European Real Estate Society (ERES).
    2. Fernanda Antunes Batista da Silva, 2021. "Flexible workspaces within corporate real estate," LARES lares-2021-4dqc, Latin American Real Estate Society (LARES).
    3. Zifeng Feng & William G. Hardin & Zhonghua Wu, 2022. "Employee productivity and REIT performance," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(1), pages 59-88, March.
    4. Thijs Ploumen & Rianne Appel Meulenbroek & Jos Smeets, 2015. "How to align the organization of the CREM-department to strategy during a recession," ERES eres2015_102, European Real Estate Society (ERES).
    5. Barry P. Haynes, 2012. "Adding value through corporate real estate asset management alignment," ERES eres2012_056, European Real Estate Society (ERES).
    6. Eetu Ristaniemi & Anna-Liisa Lindholm, 2011. "Added Value of Corporate Real Estate Management in Industrial Premises," ERES eres2011_134, European Real Estate Society (ERES).
    7. Farahiyah Fadzil & Hishamuddin Mohd Ali & Ahmad Ariffian Bujang, 2011. "Corporate Real Estate Function: A Review," ERES eres2011_207, European Real Estate Society (ERES).
    8. Rianne Appel-Meulenbroek & Barry Haynes, 2014. "An overview of steps and tools for the Corporate Real Estate strategy alignment process," ERES eres2014_57, European Real Estate Society (ERES).
    9. Theo Van der Voordt, 2015. "Adding Value by Corporate Real Estate: parameters and applications," ERES eres2015_158, European Real Estate Society (ERES).
    10. Ronald Beckers & Theo van der Voordt, 2014. "Corporate Real Estate Alignment Strategies in Dutch Higher Education," ERES eres2014_23, European Real Estate Society (ERES).

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