Virginia Gibson

Flexible working needs flexible space?: Towards an alternative workplace strategy

There is considerable debate in both the management and property literature on how human and physical resources can become more flexible in order to be able to respond to the dynamic business environment. Often there is an implication that if staff are working in more flexible ways then the property must also be more flexible. However there are numerous sources of flexibility for both these resources. In terms of staff, flexibility can be defined in terms of contractual, time and location elements. For property, flexibility comes from the financial contracts, physical layout and functional opportunities. There is not necessarily a direct link between the flexibility requirements in these two resources. However, it is clear that the demand drivers for office space are changing. The increase in use of information and communications technology (ICT) has had a direct impact on the underlying business processes and thus the breadth and balance of activities which office space needs to support. ICT has also been key in facilitating the staff flexibility. Together these have led to the development of a new strategy for managing workplaces which differentiates between where the space is located, the way in which the space is designed and how it is used. The challenge for corporate real estate managers is to get beyond the rhetoric of flexibility and understand how space can best support ever‐changing business processes.

New business practices and the corporate property portfolio: how responsive is the UK property market?

It has been asserted that business reorganization and new working practices are transforming the nature of demand for business space. Downsizing, delayering, business process reengineering and associated initiatives alter the amount, type and location of space required by firms. It also has implications for the contractual arrangements. Drawing from UK research, the paper demonstrates that, although new working practices are widespread, their current impact on the corporate property portfolio is muted. However, these changes have altered the way corporate property managers think about their portfolios with a clearer view of the divide between their core and peripheral property requirements. The inflexibility in UK market structures are felt to constrain the supply of a diversity of space required to meet the breadth of occupier requirements. Nevertheless there is increasing evidence that change is occurring which may have a profound impact on the market structure in the longer term.

Strategic Property Management

Property has been increasingly recognized as a key resource which, if well managed, contributes to an organization′s success. For local authorities, property is the environment in which people work and from which services are delivered. In this sense its suitability has an impact on both employees and clients, and therefore an influence on the efficiency and effectiveness of all the organization′s activities. With the pressure on organizations, not least local government, to deliver ever higher quality services at an even lower cost, property must be considered as a significant element on both sides of the formula, quality and cost. Elected members and senior managers need to identify and evaluate if and how property is contributing to value for money. This can only be achieved if both groups are clear about how property contributes to the authorities′ objectives. Establishes a broad framework for considering property at the most strategic level so that the senior management team are able to understand th...

In search of flexibility in corporate real estate portfolios

Real estate is an inherently inflexible asset, yet corporate real estate managers increasingly need to find ways in which flexibility can be achieved. Shorter planning horizons, increasing corporate experimentation and growth through mergers and acquisition are but a few of the influences which have led to the need for more flexible resources. One way in which corporate real estate managers can gain a greater insight into the problem is by recognising that real estate is often considered from a variety of perspectives: as a physical, functional and financial asset. Each of these perspectives leads to a different source of flexibility. As a physical asset, corporate real estate managers are concerned with aspects of design, including floorplate sizes, column placement and building services. As a functional asset, corporate real estate managers consider what activities can actually be undertaken inside a building. As a financial asset, corporate real estate managers examine the terms of contracts and the ability (and cost) to terminate those obligations. Each of these types of flexibility is required, but at different times and for different purposes within the life cycle of an organisation. Possibly the most appropriate way to look at the issue is on a portfolio‐wide basis, considering what are an organisation’s core and periphery real estate requirements. This approach requires a different type of examination of the assets but can provide a corporate real estate manager with a firm base for working towards the elusive goal of flexible real estate.

Property portfolio dynamics: the flexible management of inflexible assets

Resource flexibility is increasingly vital to meet the ever changing needs of organisations. Property is, by its nature, a highly inflexible resource. It needs to become not only more physically flexible, but also more functionally and financially flexible. The paper argues that core property, which is functionally flexible, should be supported by peripheral property, which is financially flexible. A framework for evaluating the flexibilities of a property portfolio is proposed as a basis for assessing when and where flexibility is required.

Longitudinal analysis of corporate real estate practice

Purpose – To report on longitudinal change in corporate real estate (CRE) practice in the last two decades, in particular, monitoring significant changes in CRE policy, function and activities through the statistical analysis of annual survey data.Design/methodology/approach – A literature review revealed the major themes that have influenced CRE practice in the last 20 years. Applying principal components analysis the annual survey of CRE practice dataset was analysed to identify significant tends in the CRE practices reported by organizations.Findings – A significant overlap was observed between the activities used in practice and the CRE literature, and new working practices were identified as a significant theme. Based on these analyses comment is made on the impact of changes in CRE practice over the timescale of the survey and it was predicted that new working practices will continue to influence CRE practices in the future.Originality/value – This paper fulfils a need for evidence‐based monitoring ...