Browse > Article
http://dx.doi.org/10.6106/JCEPM.2017.7.2.019

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)
Publication Information
Journal of Construction Engineering and Project Management / v.7, no.2, 2017 , pp. 19-33 More about this Journal
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.
Keywords
project development; corporate real estate management; sourcing model; decision theory;
Citations & Related Records
연도 인용수 순위
  • Reference
1 P. E. Eriksson, M. Westerberg, "Effects of cooperative procurement procedures on construction project performance: A conceptual framework", International Journal of Project Management, vol. 29, pp. 197-208, 2010.
2 A. Dorr, A. Pfnur, C. Glock, "Erfolgsfaktoren und Rahmenbedingungen von Wertschopfungspartnerschaften fur die Realisierung von Bauvorhaben - Eine empirische Analyse am Beispiel von Unternehmensimmobilien," Bauingenieur, vol. 92, pp. 51-64, 2017.
3 A. P. C. Chan, D. Scott, E. W. M. Lam, "Framework of Success Criteria for Design/Build Projects", Journal of Management in Engineering, vol. 18, No. 3, pp. 120-128, 2002.   DOI
4 P. Mayring, "Qualitative content analysis: theoretical foundation, basic procedures and software solution", Klagenfurt, pp. 143, 2014.
5 A. Diekmann, "Empirische Sozialforschung: Grundlagen, Methoden, Anwendungen", Reinbek bei Hamburg, Rowohlt-Taschenbuch-Verl., 2014.
6 J. Wallenius, J.S. Dyer, P. C. Fishburn, R. e. Steuer, S. Zionts, K. Deb, "Multiple Criteria Decision Making, Multiattribute Utility Theory: Recent Accomplishments", Journal of Management Science, vol. 54, No. 7, pp. 1336-1349, 2008.   DOI
7 W. Pan, A. G. F. Gibb, A. R. J. Dainty, M. Asce, "Strategies for Integrating the Use of Off-Site Production Technologies in House Building", Journal Construction Engineering and Management, vol. 138, No. 11, pp. 1331-1340, 2012.   DOI
8 G. R. Jahanshahloo, F. H. Lotfi, M. Izadikhah, "An algorithmic method to extend TOPSIS for decision-making problems with interval data", Journal of Applied Mathematics and Computation, vol. 175, pp. 1375-1384, 2006.   DOI
9 D. J. Watt, B. Kayis, K. Willey, "The relative importance of tender evaluation and contractor selection criteria", International Journal of Project Management, vol. 28, pp. 51-60, 2010.   DOI
10 E. Stevens-Navarro, V. W. S. Wong, "Comparison between Vertical Handoff Decision Algorithms for Heterogeneous Wireless Networks", in: Proceedings of IEE Vehicular Technology Conference (VTC-Spring), vol. 2, pp. 947-951, 2006.
11 S. Arora, E. Hazan, A. Kale, "The Multiplicative Weights Update Method: a Meta Algorithm and Applications", Theory of computing, vol. 8, pp. 121-164, 2012.   DOI
12 C.-L. Hwang, K. Yoon, "Multiple Attribute Decision Making: Methods and Applications", Springer, Berlin, 1981.
13 S. H. Zanakis, A. Solomon, N. Wishart, A. Dublish, "Multi-attribute decision making: A simulation comparison of select methods," European Journal of Operational Research, vol. 107, pp. 507-529, 1998.   DOI
14 W. Edwards, "How to use multiattribute utility measurement for social decision making", M. a. C. IEEE Transactions on Systems, pp. 326-340, 1977.
15 T. L. Saaty, "Decision making with the analytic hierarchy process", International Journal of Services Sciences, vol. 1, No. 1, pp. 83-98, 2008.   DOI
16 A. Tversky, "A general theory of polynomial conjoint measurement", Journal of mathematical psychology, vol. 4, pp. 1-20, 1967.   DOI
17 J. R. Doyle, R. H. Green, P. A. Bottomley, "Judging Relative Importance: Direct Rating and Point Allocation are not equivalent", Journal of Organizational, behavior and human decision processes, vol. 70, No. 1, pp. 65-72, 1997.   DOI
18 M. Mahmoud, Y. Liu, H. Hartmann, et al., "A formal framework for scenario development in support of environmental decisionmaking", Environmental Modelling & Software, vol. 24, pp. 798-808, 2009.   DOI
19 H. Laux, R. M. Gillenkirch, H. Y. Schenk-Mathes, "Entscheidungstheorie", Springer Gabler Verlag, 2014.
20 A. Marsdani, A. Jusoh, e. Kazimieras Zavadskas, "Fuzzy multiple criteria decision-making techniques and applications - Two decades review from 1994 to 2014", Journal of Expert Systems with Applications, vol. 24, pp. 4126-4148, 2015.
21 F. C. K., Brodbeck, R. Kerschreiter, A. Mojzisch, S. Schulz-Hardt, "Group decision making under conditions of distributed knowledge: The information asymmetries model", Journal of Academy of Management Review, vol. 32, No. 2, pp.459-479, 2007.   DOI
22 A. Pfnur, Volkswirtschaftliche Bedeutung von Corporate Real Estate in Deutschland", C. G. I. Auftraggeberkonsortium: BASF SE, Eurocres Consulting GmbH, Siemens AG Siemens Real Estate, Zentraler Immobilien Ausschuss e.V. Darmstadt, TU Darmstadt, Fachgebiet Immobilienwirtschaft und Baubetriebswirtschaftslehre, p. 5, 2014.
23 T. Asson,"Real estate partnerships: A new approach to corporate real estate outsourcing", Journal of Corporate Real Estate, vol. 4, No. 4, pp. 327-333, 2002.   DOI
24 C. A., Manning, "The economics of real estate decisions", HBR, vol. 64, pp. 12-22, 1986.
25 J. M. Padillo, M. Diaby, "A multiple-criteria decision methodology for the make-or-buy problem", International Journal of Production Research, vol. 37, No. 14, pp. 3203-3229, 1999.   DOI
26 M. M. Kumaraswamy, S. M. Dissanayaka, "Developing a decision support system for building project procurement", Journal of Building and Environment, vol. 36, pp. 337-349, 2001.   DOI
27 E. Sislian, A. Satir, "Strategic Sourcing: A Framework and a Case Study", Journal of Supply Chain Management, pp. 4-11, 2000.
28 S. E. Roulac, "Corporate Property Strategy is Integral to Corporate Business Strategy", Journal of Real Estate Research, vol. 22, pp. 129-152, 2001.
29 L. E. Canez, K.W. Platts, D. R. Probert, "Developing a framework for make-or-buy decisions", International Journal of Operations & Production Management, vol. 20, No. 11, pp. 1313-1330, 2000.   DOI
30 S. L. Duckworth, "Realizing the strategic dimensions of corporate real property through improved planning and control systems", Journal of Real Estate Research, vol. 8, No. 4, pp. 459-509, 1993.
31 A. Cox, "Business Success", Earlsgate Press, Boston, 1997.
32 S. T., Ng, D. T. Luu, S. E. Chen, "Decision criteria and their subjectivity in construction procurement selection", Australian Journal of Construction Economics and Building, vol. 2, No. 1, pp. 70-80, 2002.
33 NEDO (National Economic Development Office), "Think about building", National economic development office, HMSO, London, 1985.
34 R. M., Skitmore, D. E. Marsden, "Which procurement system? Towards a universal procurement selection technique", Journal of Construction Management and Economics, vol. 6, pp.71-89, 1988.   DOI
35 S. Singh, "Selection of appropriate project delivery system for construction projects", Proceedings of CIB W- 90 International Symposium on Building Economics and Construction Management, Sydney, Australia, pp. 469-480, 1990.
36 M. Brand, "Grundlagen zur ganzheitlichen Projektentwicklung", in Handbuch Immobilienwirtschaft, Eds. H. Gondring, E. Lammel, pp. 333-354, 2001.
37 P. Bajec, I. Jakomin, "A Make- or Buy Decision Process for Outsourcing", Journal of Traffic and Transportation, vol. 22, No. 4, pp. 285-291, 2010.
38 P. Hibberd, R. Djebarni, "Criteria of choice for procurement methods", 2016.
39 I. Ndekugri, A. Turner, "Building procurement by design and build approach", Journal of Construction Engineering Management, vol. 120, No. 2, pp. 243-256, 1994.   DOI
40 R. A. Rashid, I. M. Taib, W. B. W. Ahmad, M. A. Nasid, W. N. W. Ali, Z. M. Zainordin, "Effect Of Procurement Systems On The Performance Of Construction Projects", International Conference on Construction Industry 2006, Journal of Management Science, vol. 54, No. 7, pp. 1336-1349, 2006.
41 G. Girmscheid, "Projektabwicklung in der Bauwirtschaft - prozessorientiert", Heidelberg, Springer-Verlag Berlin, pp. 419-447, 2014.
42 P. E., Eriksson, "Procurement effects on coopetition in client-contractor relationships", Journal of Construction Engineering and Management, vol. 134, No. 2, pp. 103-111, 2008.   DOI
43 W. H. A. Weiss, "Praxishandbuch der Immobilien-Projektentwicklung", Munchen, Beck, 2013.
44 E. Murfeld, "Spezielle Betriebswirtschaftslehre der Immobilienwirtschaft", Hamburg, Hammonia-Verlag, 2002.
45 E. Leimbock, A. Iding, "Bauwirtschaft: Grundlagen und Methoden", Stuttgart, Vieweg+Teubner Verlag, 2005.
46 D. Hale, "Empirical Comparison of Design/Build and Design/Bid/Build Project Delivery Methods", Journal of Construction Engineering and Management, vol. 135, No. 7, pp. 579-587, 2009.   DOI
47 A. Pfnur, C. Schetter, H. Schobener, "Risikomanagement bei Public Private Partnerships", Berlin, Heidelberg, Springer, pp. 5-78, 2010.
48 A. Pfnur, "Modernes Immobilienmanagement", Berlin, Heidelberg, Springer, p. 450, 2011.
49 K. I. Gidado, "Project complexity: The focal point of construction production planning", Journal of Construction Management and Economics, vol. 14, No. 3, pp. 213-225, 1996.   DOI
50 P. Love, M. Skitmore, G. Earl, "Selecting a suitable procurement method for a building project", Journal of Construction Management and Economics, vol. 16, No. 2, pp. 221-233, 1998.   DOI
51 P. Racky, "Entwicklung einer Entscheidungshilfe zur Festlegung der Vergabeform", Dissertation, 1997.
52 D. T. Luu, S. T. Ng, S. E. Chen, "Formulating Procurement Selection Criteria through Case-Based Reasoning Approach", Journal of Computing in Civil Engineering, vol. 19, No. 3, pp. 269-276, 2005.   DOI
53 A. Griffith, J. D. Headley, "Using a weighted score model as an aid to selecting procurement methods for small building works ", Journal of Construction Management and Economics, vol.15, No.4, pp. 341-348, 1997.   DOI
54 K. Lee, W. Suh, D. Hong, "Strategic Make or Buy Decision Methodology for Achieving Competitive Advantage", pp. 380-387, 2012.
55 A. Kadefors, "Fairness in interorganizational project relations: norms and strategies", Journal of Construction Management and Economics, vol. 23, No. 8, pp. 871-878, 2005.   DOI