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Keywords
Real estate, Property portfolio management, Growth, Private sector
Abstract
Although often regarded as mere bricks and mortar, real estate often plays an important role in supporting corporate growth and even survival. Parallel to the rapid growth and evolution of (multinational) corporations, real estate portfolios expanded. In order to manage these portfolios, corporations established special staff and supporting departments in order to take care of these assets. Based on the results of case studies, this paper provides an analysis. In addition to a mere historical overview the outcomes of the study also provide lessons for corporations currently facing a similar path of growth. This article builds on a previous contribution and presents an in-depth analysis of the evolution of (corporate) real estate departments related to changes in the corporate setting. In addition to a mere historical overview the outcomes of this contribution provide lessons as well for today's managers facing similar paths of growth.
1. What is corporate real estate?
Since the beginning of the twentieth century, activities relating to corporate real estate have evolved from a mere side-activity of the firm's owner/founder to the creation of a separate discipline within business management and academe. The growth of corporations and the commensurate expansion of their real estate portfolio triggered the need for managerial attention being paid to matters of real estate.
Although the chronicles of buildings date back to well before the beginning of the modern age, the history of buildings constructed specifically to accommodate either commercial or industrial activities is brief. Books on architectural history show up to the nineteenth century an emphasis on buildings constructed for the mere glory of the church, the state, or the army. In these cases the necessary financial resources for their construction were more or less guaranteed. For a long time industrial activities did not require specialised accommodation, due to the limited size and scale of these activities; they were accommodated either in a partition of one's house or simply out in the open. The industrial revolution and the subsequent changes in accommodation needs led to the construction of buildings especially for accommodating industrial processes. The growth of industrial activities and the continuous need for accommodation also resulted in managerial attention to real estate....