Editorial

Citation

Cooke, H. (2015), "Editorial", Journal of Corporate Real Estate, Vol. 17 No. 3. https://doi.org/10.1108/JCRE-07-2015-0019

Editorial

Article Type: Editorial From: Journal of Corporate Real Estate, Volume 17, Issue 3

I would like to start this editorial with a thank you to Istanbul Technical University (ITU) and the European Real Estate Society (ERES) for the 22nd Annual Conference of ERES held in June in Istanbul with four days of well-organised conference activities. The commercial real estate (CRE) sessions still form a small part of the whole, which is something that remains in the control of those of us in the CRE sector. Indeed, the drive to expand the profile and the knowledge base of CRE is something that my Co-Editor, Rianne Appel-Meulenbroek, and I are seeking to push forward. As part of that, we are looking at a number of special issues of the Journal over the next couple of years focusing on different parts of the “CRE jigsaw”. The breadth, width and diversity of the physical structures and the influences on space and its use are for me a major attraction of CRE. The hope is to produce special editions that will showcase these aspects.

The first special edition will look at “the modern work environment and new ways of working”. The list of subjects for this special edition indicates the breadth of CRE influencers and can be found here: http://emeraldgrouppublishing.com/products/journals/call_for_papers.htm?id=6170. We welcome papers on these and other related subjects for the special edition or, indeed, any other edition. At ERES 2015, a number of stimulating papers were presented with associated debate, and we will be running a special edition for papers presented at that conference next year. I am pleased to say that Dr Theo van der Voordt, Associate Professor at the Delft University of Technology (TU Delft), will be our Guest Editor. The topics of further special issues will be communicated later.

Turning to this edition of Journal of Corporate Real Estate (JCRE), we have four very different topics (the relocation process, asset management, accounting for service charges and the future of retail), while addressing three different sectors (office, universities and retail), again confirming the width of the field.

Rothe and Heywood’s paper seeks to understand the process within an organisation when it considers relocation and how this process evolves during the relocation exercise. Hence, the aim is to open up the “black box” of decision making, which reflects not only a single decision but also a series throughout the relocation. Although research has looked at several elements of the continuum, no one has focused on the entirety of decision-making which the authors do by looking at five case studies in Helsinki, Finland. This hopefully will start a wider consideration of the subject and the weighting that might be applied to different elements such as productivity and employee satisfaction.

Our second paper, by Malgorzate and Trojanowski at the University of Gdansk, Poland, examines asset management of properties by universities. Higher education has seen significant fluctuations in student numbers, reflecting the expansion of the sector followed by contraction, and that has resulted in different pressures on the space needs on campuses. With that comes the problem of inflexible space, such as lecture halls, and how organisations need to maximise usability and value of assets, and they then apply that to Gdansk itself. The paper highlights the need for organisations to retain flexibility and try and link CRE with potential changes to their “business model”.

The operation of service charges for shopping centres and multi-let offices is often a source of friction between occupiers and landlords and the latter’s managing agents, certainly in the UK. Andrew Holt has sought to establish the real picture around how the accounting process works and whether that reflects perception by occupiers or not for the UK. The Royal Institution of Chartered Surveyors (RICS) has issued several versions of its Code of Practice for Commercial Service Charges, and Holt uses that as the benchmark for assessing compliance. Anecdotal evidence has suggested low compliance levels, and the research shows that the level of compliance that the RICS want has not been achieved. This raises questions as to how the RICS and indeed other parties might respond. At the moment, the Code has been voluntary, but if it is failing to be followed there is the option as to whether the RICS will make it mandatory, or indeed as it relates to holding third party monies any of the financial regulators.

Finally, Jones and Livingstone consider the impact of online sales on CRE strategies for retailers. Within the UK, they chart changes that are being driven by online sales by looking at three large retailers in different parts of the sector. The adaption has included changing stores to include “click and collect” areas and taking on “dark stores” for serving home deliveries. The changing nature of town centres in the UK is something that has received the focus of central government and an understanding of the dynamics of the retail sector will have a number of ramifications, in particular, if there is a shrinking of the retail footprint overall.

Enjoy reading them!

Howard Cooke, CORE Consulting, Maidenhead, UK