A combined perspective of corporate real estate

Ingrid Nappi-Choulet (nappi@essec.edu) and Kim Liow
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Ingrid Nappi-Choulet: ESSEC Business School

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Abstract: Purpose - The purpose of this paper is to discuss three corporate real estate (CRE) perspectives (business, financial and capital market) as well as some potential issues, supported by key research studies and evidence drawn from listed retail companies in the USA, and European and Asian countries; as real estate has always been recognized as a key value driver in the retail industry. Design/methodology/approach - A significant amount of capital is locked-up in CRE by business firms, and so this paper analyzes the role of CRE from a combination of three perspectives: business, financial and capital market. These three CRE perspectives are discussed and some important issues reviewed, supported by key research studies and evidence drawn from listed retail companies in the USA and in European and Asian countries. Findings - Arising from the review and perspectives offered in this paper, it is evident that performance measures are required to assess how CRE are being used and perceived by management and investors from the business, financial and capital market perspectives. This combined approach helps position the strategic role of the CRE in the context of "whole firm" that reflects the integration of trading and real estate activities. Practical implications - With an effectiveCREAMsystem endorsed by top management, the CRE' s potential contribution and incremental performance can be factored into the financial plans of the "property-rich" retail firms and appropriately reflected in corporate valuation. Originality/value - This paper offers combined business, financial and capital market perspectives to assess the role of CRE in listed retail firms. Evidence and important issues in relation to the three perspectives are reviewed and evaluated.

Keywords: Corporate governance; Real estate; Retailers; Business analysis; Financial analysis; Capital markets (search for similar items in EconPapers)
Date: 2008-01-01
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Citations: View citations in EconPapers (4)

Published in Journal of Corporate Real Estate, 2008, 10 (1), pp.14

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00629226

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