Strategic benchmarking in corporate real estate

Abstract

This work examines the strategically focused benchmarking of corporate real estate units and the implementation of its results towards broadening their mandates. To illustrate how benchmarking of corporate real estate can add strategic value to an enterprise, this thesis presents data gathered through interviews with industry practitioners actively engaged in benchmarking practices. As the corporate environment becomes increasingly competitive with a trend towards customer/market driven focus, corporate real estate departments are being elevated and gaining visibility within the firm. In response to the changing demands of business, they are becoming more proactive and shifting from the tactical project management to strategic portfolio and workplace management. When corporations recognize that CRE units can add measurable value, they become an integral part of the strategic-decision making process. To this end, corporate real estate organizations have been participating in strategic benchmarking, through initiatives designed to examine their real estate performance in formal studies with peer companies. They have come to appreciate the benefits of the benchmarking process and recognize its limitations. But, most importantly, benchmarking has become an integral part of their research and strategic planning efforts, and an essential tool to help them achieve the competitive edge they are after.