Property Developers in the Transformation of the Real Estate Industry – A Stakeholder Approach to Determine the Strategic Need for Business Model Innovation

Benjamin Wagner and Andreas Pfnür

ERES from European Real Estate Society (ERES)

Abstract: In the current real estate transformation, both the real estate value creation system and its business models are changing. For real estate developers in particular, the need to adapt their own business models is becoming apparent. Therefore, this research project examines where the strongest influences occur in the environment of real estate developers and the effects of these structural changes on real estate project developments. The purpose is to highlight the strategic influence of the changes taking place as well as the resulting need for strategic action for business model innovations.For this purpose, we use a mixed method approach. First, we use graph theory and social network analysis to determine which stakeholders have the strongest influence on real estate developers. The data basis is a quantitative survey of 249 decision-makers in the real estate industry. Based on this, we conduct 28 semi-structured interviews with relevant stakeholders in real estate development in order to describe and contextualize the changes and actions that have an impact and to derive the concrete need for action.The results show that real estate developers, as central actors in the real estate transformation, are strongly affected, while at the same time they are also the source of significant influences. Changing occupant requirements increase the demand for holistic services provided by developers. Cooperation between developers and occupiers helps to adapt existing space to the current requirements of new working environments and at the same time provides potential for developing innovative forms of space provision in the sense of space-as-a-service. In order to be able to offer holistic solutions for space provision, an integration of real estate value-added stages is emerging. For developers, digital technologies provide potentials to bundle services as a central real estate player, although uncertainties and a lack of standardization still pose hurdles.The findings help to understand the change processes of the real estate industry transformation more profoundly. For real estate developers, the results provide strategic options for adapting their business models due to changing business conditions.

Keywords: real estate business model innovation; real estate transformation; Real-Estate-as-a-Service; Social Network Analysis (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2021-01-01
New Economics Papers: this item is included in nep-isf and nep-ure
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