Journal of Construction Engineering and Project Management

Korea Institute of Construction Engineering and Management (한국건설관리학회)
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How to develop corporate real estate? A decision support tool for CREM

  • Dorr, Anne (Department of real estate and construction management, Technical University Darmstadt) ;
  • Pfnur, Andreas (Department of real estate and construction management, Technical University Darmstadt)
  • Published : 2017.06.01
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Abstract

Various forms of procurement are open to companies when constructing new owner-occupied properties. The selection of a form of procurement is an important decision-making problem for companies and their Corporate Real Estate Management (CREM) departments. With this in mind, a decision support tool has been developed to optimise the outcome and success of company's proposed real estate development projects and is presented in this paper. This model can also be used for current real estate portfolios to optimise returns in the long term. In pursuit of this objective and in order to provide an academic basis for this study, decision-relevant goals and parameters were initially identified from the referenced literature used in our research. These were subsequently evaluated in a case study of a corporate development project and identified as specific decision criteria from the perspective of the CREM. The investigation identified 15 criteria that are relevant to the corporate decision-making process in procuring and/or developing property. A model for supporting and resolving decision-making problems of this type was derived from decision theory. In this paper, a decision-making tool is presented that takes into account all the decision criteria from the CREM point of view for the first time. This model should therefore serve as an aid in implementing the decision-making process for the development of real estate projects in a more structured and transparent manner.

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References

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