An Analysis of Dejcision Making Tools for Appraising Corporate Real Estate Portfolios

Seokhwan Choi

An Analysis of Dejcision Making Tools for Appraising Corporate Real Estate Portfolios

Korea Real Estate Review
2005, 15(2), pp.167-193
Publisher : korea real estate research institute
Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

¹MS in Facility Planning & Management/Real Estate

ABSTRACT

Large corporations that have complex real estate portfolios face many challenges including fluctuations, uncertainty, and financial risks. Corporate real estate (CRE) managers must then make decisions about reducing the costs of property holdings and eliminating redundant real estate, but they lack systematic tools to analyze and compare corporate properties. As a result, many companies spend excessive time assessing properties and thus make poor decisions about which properties to keep and which to eliminate or improve. The purpose of this research was to examine the existing assessment models; to make a comprehensive analysis of existing organizational and real estate assessment tools that will enable CRE managers to make quick, accurate real estate decisions in the early stages of portfolio assessment. This research focused on identifying factors, criteria, and weighing systems as well as primary foci like benefits, limitations, and impact. The analysis is followed by an analytical framework with four key objectives: financial, physical, locational, and organizational aspects that were developed to rate five organization and real estate assessment tools. These objectives were used to assess the specific tools considered in this thesis. It was found that the tools are more focused on physical issues or two out of four key issues; also, the level of complexity of the factors and criteria varied. Only two assessment models-BQA and REN-have a weighting system. Depending on organization's needs, geographical variations, national policies, or codes & standards, this system might be applied in a variety of ways.

KEYWORDS

corporate real estate portfolio, building assessment tool, building performance, organization and real estate assessment tool

Citation status

* References for papers published after 2023 are currently being built.

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