Survey Results This appendix is an overview of a survey conducted by Dirk Brounen (TiasNimbas Business School) as a supplement for the paper Corporate Real Estate Acceptance. In order to collect the data TiasNimbas Business School partnered with CoreNet Global to conduct this survey in the autumn of 2012. Brounen undertook this effort to address a gap in the availability of comprehensive
data on 30 years of Corporate Real Estate Management (CREM). This overview highlights the most important, interesting and remarkable results of the responses of 291 entities and comprises four parts; 1) Respondent profiles, 2) Current CREM affairs, 3) Most remarkable results and, 4) Flash forward. Furthermore, the survey contained 18 questions and was answered by 291 respondents.
1. Respondent profiles Q1: Where is your company’s headquarter located? Other 3 1%
Asia/Pacific 24 8%
4% 22%
Q3: How old is your company? (yr)
Asia
2% 3%
2% 1%
74%
14%
13%
5% 4%
3%
USA
>25
Europe 45 16%
5 till 10
EU
10 till 20
81%
0 till 5 91%
9%
16% 7%
EU 29%
9% 9% Financial Services
23% 15%
USA
Manufacturing / Industrial
22%
4%
4%
13%
8% 15%
11% 42%
Latin/ South America 1 0%
13%
11 till 20
11%
>100 0 till 5 20 till 50
8%
10%
50 till 100
USA
Telecommunications
3% 6 till 10
16%
11% 18%
26%
24%
N.A.
23%
30%
20%
Asia
EU
Other Technology
7%
21%
21%
36%
Real Estate
4% 4%
Q5: How many people work at the CRE group of your firm?
9%
10%
10%
4%
81%
Q2: What is the main industry in which your firm is active?
20%
19%
N.A.
22% 9% 9%
Q4: How many employees work at your firm?
Asia
21% 8% 4%
44%
38%
3%
16%
N.A.
2%
North America 218 75%
1000 till 10,000
17% 3%
41%
100 till 1000
25% Asia
43%
> 100,000 29% 42%
7/31/2013
10,000 till 100,000
6% 12%
21%
17%
21%
EU
13%
30%
5%
USA
32% Page 1 of 5
Survey Results
2. Current CREM affairs Q6: Is your real estate group a separate department or a subsidiary? 12%
Q7: To whom does your real estate group report to within your organization?
8%
7%
Group ‘other’ comprises: 9%
Other
Other
40%
Facilities
Separate department Subsidiary
Finance/CFO 48%
49%
HRM 5%
80%
CEO 26% COO Legal Shared Services Other 5% 11%
Q9: Do you evaluate the performance of your company's real estate every year?
Q8: How is Corporate Real Estate management at your company being carried out?
14%
14%
External full service providers 11% 14%
Fully in house
13%
Yes
With the help of external advisors
7%
41%
No
Other
14%
Blanks
With the help of external brokers Blanks
72%
Q10: How do you evaluate the performance of your company's real estate?
Q11: Do you manage your company’s real estate as profit- or as a cost center?
18%
15% 3%
Financially and other Financially only Other
3% 9%
11% 3%
70%
Blanks
Q12: Do you have a full inventory of all your real estate assets (lease and ownership)? 7%
16%
Cost center Profit center Both Other Blanks
Q15: Does your company (primarily) lease or own your current corporate real estate needs? Lease
29%
Lease and own our real estate in equal proportions Own
No Yes Blanks
68%
43%
9% 77%
7/31/2013
Blanks 19%
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Survey Results
3. Most remarkable results Q: Is your real estate group a separate department or a subsidiary? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Fraction separate real estate department
70% 80%
87%
83%
78%
75%
80%
40% 47%
56% 50%
45%
47%
39%
30% 20%
25%
10% 0%
Q: Do you manage your company’s real estate as profit- or as a cost center?
Q: Do you have a full inventory of all your real estate assets (lease and ownership)?
Fraction that manages CRE as cost center
Fraction with full inventory of all leases
78%
75%
60%
67%
71%
74%
73%
59% 50%
30% 20% 10% 0%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
80%
92%
85%
80%
76%
73%
90%
88%
Q: How big is the stake of CREM as percentage of total assets at your firm?
Q: Does your company (primarily) lease or own your current corporate real estate needs?
Fraction that ‘does not know’
Fraction that leases
40%
80%
35%
70% 34%
33%
25%
26%
29%
28%
28%
65%
50% 40%
15%
76%
60% 28%
20% 10%
68%
60% 50%
67%
70%
30%
Fraction that reports to CFO
80%
90% 80%
50% 40%
Q: To whom does your real estate group report to within your organization?
46%
44%
49%
50% 40%
30% 13%
20%
5%
10%
0%
0%
7/31/2013
The US (1983) data is compiled by Zeckhauser & Silverman (1983)
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Survey Results
3. Most Remarkable results (continued) Q: How is Corporate Real Estate management at your company being carried out?
Q: To whom does your real estate group report? Fraction that evaluates ‘financially only’
Fraction that manages CRE fully in-house
14%
40%
12%
38%
35%
13%
30%
10%
25%
8%
24%
20% 6%
7%
15%
4%
5%
2%
17%
10%
13%
11%
11%
5% 0%
0%
0% COO
10%
Facilities
Finance/CFO
HRM
Q: How is Corporate Real Estate management at your company being carried out?
Q: To whom does your real estate group report? Fraction that manages CRE as cost center
Fraction with full inventory of all leases 100%
100% 90% 80%
95%
91%
95% 79%
70% 60%
98%
67%
90% 65%
50% 40%
91%
85%
87%
80%
30% 20%
81%
75%
10% 70%
0% COO
Facilities
Finance/CFO
Other
With the help With the help of external of external advisors brokers
Q: To whom does your real estate group report?
Q: To whom does your real estate group report?
Fraction that evaluates the performance every year
Fraction that leases
100%
70%
90% 80%
External full Fully in house service providers
HRM
60%
91% 83%
70%
50%
73%
60%
65%
50%
59%
55% 50%
40% 40% 30%
40% 30%
20%
20%
10%
10% 0% COO
7/31/2013
Facilities
Finance/CFO
HRM
0% COO
Facilities
Finance/CFO
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HRM
Survey Results
4. Flash forward Q17: Does your firm consider carving out the corporate real estate portfolio as investment fund?
Q18: How is your firm positioned towards the upcoming changes in IFRS Lease Accounting?
25%
Exploring the new requirements Preparing for implementation Ready for implementation Waiting to prepare until implementation Blanks
No Yes
5%
Blanks
70%
23% 12%
45%
14% 12%
40%
13%
42%
35%
10%
30%
8%
9%
29%
25% 20%
6% 4%
10%
4%
3%
27% 22%
15%
5% 4%
15%
13%
5%
0%
0%
3%
0%
Q: To whom does your real estate group report?
Q: How is Corporate Real Estate management at your company being carried out?
Fraction that considers carving out the CRE portfolio as investment fund 7%
Fraction that waits to implement IFRS 20% 18%
7%
6%
18%
16%
5% 4%
13%
Fraction that waits to implement IFRS
Fraction that carves out the CRE portfolio as investment fund
2%
25%
27%
5%
16%
14% 5%
14%
12% 10%
3%
13%
12%
8%
2%
6% 4%
1% 0% 0% COO
Facilities
Finance/CFO
HRM
The seven results highlighted in yellow are briefly discussed to conclude this overview. These results show that most of the CREM divisions report, especially large entities and firms that are located in Europe, to their CFO. Furthermore, 7% of the respondents do not have a full inventory of all their CRE assets. Moreover, it is highly remarkable that solely 13% of the US respondents (compared to
7/31/2013
2% 0% External full Fully in house service providers
Other
With the help With the help of external of external advisors brokers
33% in 1983) know how large the stake of CREM is as percentage of total assets at their organization. An important role is also fulfilled by carrying out the corporates’ CREM. Conducted fully in-house seems to provide less information than fully outsource the CREM. In addition, many small companies indicate to postpone the preparations concerning IFRS Lease Accounting.
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