Corporate property is routinely identified as the second biggest cost within a business organization after staff. Effective management of such a major asset requires a fundamental understanding of both the operation of the property markets and the operational requirements of the business occupier. This primer on strategic property management focuses on how property held as a corporate asset can be used to add value to the primary business activity of an organization. Rather than separate the needs of the business form the management of the business estate, the aim of Corporate Property Management is to enable the reader to directly support the primary business function through strategic management of corporate property, thereby adding value to the business as a whole. The book introduces a generic framework designed to assist in the analysis of any corporate property portfolio, working as a practical aid to decision making. The book is structured around this framework, providing a detailed review of its application and uses. This is then developed further through extensive use of five in-depth case studies that covers a wide variety of property types and property users - Borders bookshops; Cancer Research high street shops; The Youth Hostel Association; Clifford Chance's move to Canary Wharf and the Ardtornish Rural Estate in Scotland.

Dr Victoria Edwards is principal lecturer in Land Management in the School of Environmental Design and Management at the University of Portsmouth. Louise Ellison is Senior Lecturer at the School of Surveying, Kingston University. Their interests span the sustainable management of all types of property - from retail and office buildings to forests and coastal zones. They have combined teaching experience of 25 years at undergraduate and postgraduate level, as well as practical experience in property management.

Preface

ix

Acknowledgements

xi

Section I: Strategic Corporate Property Management - an analytical framework

1

(148)

1 Introduction to Strategic Property Management

3

(13)

Introduction

3

(1)

The importance of strategic property management

4

(1)

Property as an investment asset

5

(4)

Corporate property

9

(4)

Conclusion

13

(1)

References

14

(1)

Further reading

14

(2)

2 Formulation of Strategy - Adopting an Analytical Approach

16

(14)

Introduction

16

(1)

A common framework of analysis

17

(10)

Use of the framework

27

(1)

References

28

(2)

3 Property Performance Evaluation

30

(21)

Introduction

30

(1)

The role of property within business

31

(1)

Performance evaluation: property held as an investment asset

31

(7)

Performance evaluation: property held as an operational asset

38

(7)

Benchmarking

45

(1)

Cost centre v. profit centre

46

(2)

Conclusion

48

(1)

References

48

(2)

Further reading

50

(1)

4 Understanding Property Characteristics - Information Requirements

51

(11)

Introduction

51

(1)

Good record keeping

51

(2)

Physical appraisal of the property

53

(1)

Proprietary features

54

(1)

Financial appraisal

55

(1)

Evaluation

56

(3)

Conclusion

59

(1)

References

60

(2)

5 Understanding Property Users' Characteristics

62

(16)

Introduction

62

(1)

Who do we mean by 'property users'?

62

(2)

Society and stakeholder relationships

64

(1)

Management relationships with stakeholders

65

(4)

Management relationships with the wider user community

69

(7)

Conclusion

76

(1)

References

76

(1)

Further reading

77

(1)

6 Organisational Objectives in Relation to Corporate Property

78

(13)

Introduction

78

(1)

Organisational objectives

79

(1)

Strategy

79

(1)

Porter's theory of competitive advantage

80

(2)

Property as part of competitive strategy

82

(7)

References

89

(1)

Further reading

90

(1)

7 Understanding Property Markets - an Institutional Approach

91

(20)

Introduction

91

(1)

Institutions

92

(1)

Institutional arrangements

93

(2)

Markets

95

(2)

The operation of the market

97

(2)

Transaction costs

99

(1)

Uncertainty and institutional arrangements

99

(2)

The need for institutions to evolve and change

101

(2)

Analysing institutions when managing property

103

(3)

Conclusion

106

(3)

References

109

(2)

8 An Institutional Approach to Understanding Property Markets - Legal and Financial Institutions

111

(11)

Legal institutions

111

(6)

Financial institutions

117

(4)

References

121

(1)

Further reading

121

(1)

9 An Institutional Approach to Understanding Property Markets - Administrative Institutions

122

(10)

Introduction

122

(1)

Constitutional level

122

(3)

Organisational level

125

(3)

Operational level

128

(3)

References

131

(1)

10 Formulating Strategies for Property Management

132

(17)

Introduction

132

(1)

The application of institutional analysis

132

(5)

The application of management strategy

137

(5)

The role of property within the organisation

142

(3)

References

145

(1)

Further reading

146

(3)

Section II: Case Studies

149

(79)

Case Study 1: Borders UK

151

(12)

Introduction

151

(1)

Background

151

(1)

Property user characteristics

152

(3)

Property characteristics

155

(1)

Organisational objectives in relation to real estate

156

(1)

The institutional arrangement of the property market

157

(1)

The external world

158

(1)

Evaluation

159

(2)

Conclusions

161

(1)

References

162

(1)

Case Study 2: Clifford Chance

163

(14)

Introduction

163

(1)

Property user characteristics

163

(4)

Property characteristics

167

(1)

Organisational objectives in relation to real estate

168

(1)

Strategy selection and implementation

169

(2)

The institutional arrangement of the property market

171

(1)

The external world

172

(1)

Evaluation

173

(1)

Conclusions

174

(2)

Reference

176

(1)

Case Study 3: The Youth Hostels Association of England and Wales

177

(18)

Introduction

177

(1)

Background

177

(2)

Property user characteristics

179

(4)

Property characteristics

183

(4)

Organisational objectives in relation to real estate

187

(2)

The institutional arrangement of the property market

189

(2)

The external world

191

(2)

Evaluation

193

(1)

Conclusions

193

(1)

References

194

(1)

Case Study 4: Cancer Research UK

195

(15)

Introduction

195

(1)

Background

196

(1)

Property user characteristics

197

(3)

Property characteristics

200

(1)

Organisational objectives in relation to real estate

201

(3)

The institutional arrangement of the property market

204

(1)

The external world

205

(1)

Evaluation

206

(1)

Conclusions

207

(1)

References

208

(2)

Case Study 5: Ardtornish Estate, Morvern, Scotland

210

(18)

Introduction

210

(1)

Background

210

(1)

Property user characteristics

211

(2)

Property characteristics

213

(1)

Organisational objectives in relation to real estate

214

(6)

The institutional arrangement of the property market

220

(2)

The external world

222

(1)

Evaluation

223

(2)

Conclusions

225

(2)

References

227

(1)

Bibliography

228

(7)

Index

235

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