Measuring corporate real estate asset management performance

Abstract

It is difficult to measure relative corporate real estate asset management performance, as different organizations require different outputs from their property assets. However, prior research has identified a number of input factors or dimensions relating to corporate real estate that tend to occur together in organizations exhibiting high levels of performance. This paper proposes a methodology to combine these input variables into a single relative measure of corporate real estate asset management performance using factor analysis. The model on which the measure is based is tested by applying it to data collected in a survey of 457 organizations in New Zealand. The results show consistency in response amongst organizations and with prior research in respect of six variables that are important to CREAM performance. This leads to the derivation of a single performance measure that reflects the combined effect of these variables.