Impact of real estate interventions on organisational performance

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Background: Real estate is increasingly used as a source of improving the performance of organisations by an improved image, cost reductions, increased employee satisfaction and increased labour productivity. A clear conceptual framework and standardised Key Performance Indicators (KPIs) are needed to understand and monitor the effects of real estate interventions.
Purpose: This paper aims to explore the added value of real estate interventions to organisational performance, theoretically and empirically, including unforeseen positive and negative side-effects.
Methodology: The conceptual framework was based on an extensive literature survey and empirically used in a survey among 47 Institues of Higher Professional Education (IoHPEs) in the Netherlands and additional in-depth interviews at nine Institutes. The effects of real estate interventions were studied by conducting time series analyses of changing organisational performance using several KPIs.
Findings: The study has shown that real estate interventions actually improve organisational performance. However, the effects are not always as positive as expected, nor are they always clearly visible when using the present KPIs for organisational performance. In addition, some effects are temporary.
Practical implications: The conceptual framework and the suggested KPIs can be used to support managers in effectively steering on organisational performance by means of real estate interventions, formulating targets in a SMART way, setting priorities with regard to their organisation’s main objectives, and monitoring the effects.
Originality: The conceptual framework integrates know-how from various studies and fields and was empirically used in educational settings
Original languageEnglish
Pages (from-to)208-223
Number of pages16
JournalJournal of Corporate Real Estate
Issue number3
Publication statusPublished - 2008

Bibliographical note

Accepted Author Manuscript


  • Added value
  • corporate performance
  • corporate real estate
  • real estate interventions
  • KPIs

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