AN ASSESSMENT ON THE CHALLENGES FACED BY CORPORATE REAL

ESTATE MANAGERS IN GABORONE

EMELDA BEJILE
STUDENT ID NUMBER: 201803345
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE
AWARD OF THE DEGREE: BACHELOR OF SCIENCE IN REAL ESTATE

UNIVERSITY OF BOTSWANA
FACULTY OF ENGINEERING AND TECHNOLOGY
DEPARTMENT OF ARCHITECTURE AND PLANNING
SUPERVISOR: DR AGOUME

APRIL 2022
DECLARATION
STUDENT NAME: Emelda Bejile
STUDENT NUMBER: 201803345
I understand that this research project contributes to the assessment of my competency for the
qualification for the receipt of a degree. I accept the rules of assessment of the University of
Botswana and the consequences of transgressing them. I hereby confirm, therefore, that the
attached research project is my work and any sources consulted are adequately acknowledged
in the text and listed in the bibliography. I understand what plagiarism is and am aware of the
University’s policy in this regard. I declare that this project is my own final work. Where other
people’s work has been used (either from a printed source, Internet or, any other source), this
has been properly acknowledged and referenced by departmental requirements. I have not used
work previously produced by another student or any other person to hand in as my own and I
have not allowed, and will not allow, anyone to copy my work, with the intent to pass on her
own work.

Student Signature…………………
To be completed by the recipient of the research
Name of Supervisor:
Signature: …………………………..
Name of Research Coordinator: Dr Agoume
Signature: …………………………..
Date: ………………………………..

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ACKNOWLEGEMENTS

I would like to take this opportunity to thank God Almighty for the strength he has given me
throughout the inception and completion of this proposal. There have been challenges that I
have experienced during the production of this study, but through his grace I managed to
successfully complete the report.

I also wish to thank my family, friends and course mates for their advice and encouragement
regarding this proposal. Their words of encouragement have been a source of inspiration and
helped me to successfully complete this report. Also, great thanks to my colleagues who have
always helped in significant aspects of this report by giving their opinions and advice.

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ABSTRACT
Purpose: To assess the challenges faced by corporate real estate managers in Gaborone,
Botswana.

Methodology: Both primary and secondary sources of data were used for data collection.
Primary source of data for this report. Primary sources of data will be from corporate real estate
managers via an interview as well as employees from organisations through questionnaires.
Secondary sources of data on the other hand, will be collected from books, reports and journal
articles, conference papers and others. Analysis of data will be performed using software
packages such as Microsoft Excel, ANOVA and regression.

Findings: The challenges faced by corporate real estate managers in Gaborone are poor
communication, lack of planning, lack of skill diversity, poor management skills and poor
problem-solving skills. The factors identified showed a positive impact on challenges faced by
corporate real estate.

Significance of the proposed study: As the future of corporate real estate management appears
to be undervalued, the study aims to serve as a platform for raising the corporate real estate
management industry in Botswana to a completely new level. It also intends to make a
significant contribution to filling gaps in existing knowledge in Botswana on successfully
recognising the importance of corporate real estate value to an organisation, as well as the
benefits associated with it.

Keywords; Corporate real estate, corporate real estate management, real estate, challenges,
Botswana

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LIST OF ABBREVIATIONS
RE- Real Estate
CRE- Corporate real estate
CREM- corporate real estate management

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DEFINITIONS OF KEY TERMS
Real estate: Land, buildings, and other structures permanently attached to the land.
Corporate Real Estate (CRE): A tangible asset, the real estate owned by corporations whose
primary business is not primarily real estate, or a functional unit within a corporation, that is
responsible for its real estate assets and associated activities (Ali, Adair, et al., 2008).

Corporate Real Estate Management (CREM): The optimum use of all real estate
assets utilized by a corporation in pursuit of its primary business mission(Ali, Adair, et
al., 2008).

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 LIST OF TABLES
Table 1: Summary of preliminary studies ................................................................................ 20
Table 2: Formation of variables ............................................................................................... 56
Table 3: Demographic characteristics of the respondents ....................................................... 66
Table 4: Corporate factors for objective 1 ............................................................................... 69
Table 5: Anova table for significance of corporate factors ...................................................... 70
Table 6: Human factors for objective 1 ................................................................................... 73
Table 7: Anova table for human factors ................................................................................... 74
Table 8: Organizational factor for objective 1 ......................................................................... 77
Table 9: Anova test for organizational factor .......................................................................... 78
Table 10: Financial factors for objective 1 .............................................................................. 79
Table 11: Anova test for financial factors ................................................................................ 80
Table 12: Corporate factors for objective 2 ............................................................................. 81
Table 13: Human factors for objective 2 ................................................................................. 84
Table 14: Organisational factors for objective 2 ...................................................................... 86
Table 15: Financial factors for objective 2 .............................................................................. 88
Table 16: Correlation matrix .................................................................................................... 92

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 LIST OF FIGURES

Figure 1: Problem analysis diagram......................................................................................... 26

Figure 2: Classification of variables ........................................................................................ 27
Figure 3: Conceptual framework ............................................................................................. 29
Figure 4:CRE responsibilities .................................................................................................. 35
Figure 5: Competency model ................................................................................................... 35
Figure 6: Functional role of CRE ............................................................................................. 36
Figure 7: The "Dow Cornerstones" .......................................................................................... 36
Figure 8: The complexity of property management ................................................................. 43
Figure 9: Corporate factors ...................................................................................................... 67
Figure 10: Human factors ........................................................................................................ 70
Figure 11: Organizational factors ............................................................................................ 75
Figure 12: Financial factors ..................................................................................................... 78
Figure 13:Corporate factors .................................................................................................... 81
Figure 14: Human factors ........................................................................................................ 83
Figure 15: organizational factors ............................................................................................. 86
Figure 16: Financial factors ..................................................................................................... 88
Figure 17: Model ...................................................................................................................... 91

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TABLE OF CONTENTS
DECLARATION .......................................................................................................................ii

ACKNOWLEGEMENTS ....................................................................................................... iii

ABSTRACT ............................................................................................................................. iv

LIST OF ABBREVIATIONS ................................................................................................... v

DEFINITIONS OF KEY TERMS ............................................................................................ vi

LIST OF TABLES ...................................................................................................................vii

LIST OF FIGURES ............................................................................................................... viii

TABLE OF CONTENTS ......................................................................................................... ix

CHAPTER 1: BACKGROUND AND PROBLEM FORMULATION .................................... 1

1.1 Introduction ................................................................................................................. 1

1.2 Background of the study ............................................................................................. 1

1.2.1 Global perspective ............................................................................................... 1

1.2.2 Regional perspective ............................................................................................ 2

1.3 Brief preliminary literature review .................................................................................. 3

1.4 Knowledge gap .......................................................................................................... 24

1.5 Core problem identification ........................................................................................... 25

1.6 Problem statement.......................................................................................................... 25

1.7 Problem analysis diagram .............................................................................................. 26

1.8 Group factors (classification of variables) ..................................................................... 27

1.9 Research objectives and questions ................................................................................. 28

1.9.1 General research objectives ..................................................................................... 28

1.9.2 Specific research objectives .................................................................................... 28

1.9.3 Research questions .................................................................................................. 28

1.9.4 Hypothesis ............................................................................................................... 28

1.10 Conceptual framework ............................................................................................... 29

1.11 Scope, limitations and delimitations ...................................................................... 30

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 1.11.1 Scope of the study ................................................................................................. 30

1.11.2 Limitations of the study......................................................................................... 30

1.11.3 Delimitations of the study ..................................................................................... 30

1.12 Significance and importance of the study .............................................................. 30

1.12.1 Significance of the study ....................................................................................... 30

1.12.2 Importance of the study ......................................................................................... 31

1.13 Beneficiaries and benefits of the study .................................................................. 31

1.14 Methodology used ................................................................................................. 31

1.14.1 Primary source data ............................................................................................... 31

1.14.2 Secondary source of data....................................................................................... 31

1.14.3 Tertiary Source of data .......................................................................................... 32

1.15 Chapter organization of the study .......................................................................... 32

1.16 Chapter Summary .................................................................................................. 33

CHAPTER 2: LITERATURE REVIEW ................................................................................. 34

2.1 Introduction .................................................................................................................... 34

2.2 Concept of corporate real estate ..................................................................................... 34

2.2.1 Why is CRE significant? ......................................................................................... 36

2.2.2 The importance of working environments .............................................................. 37

2.3 Challenges for CRE managers ........................................................................................... 38

2.3.1 Understanding the corporate strategy ...................................................................... 39

2.3.2 Getting the organisation to listen............................................................................. 40

2.3.3 Organisation fit ........................................................................................................ 41

2.3.4 Developing diverse skills ........................................................................................ 43

2.3.5 Presentation/ reporting skills ................................................................................... 44

2.3.6 Building a robust planning process ......................................................................... 45

2.3.7 Constructing clear roles and responsibilities ........................................................... 47

2.3.8 Developing a robust performance management system .......................................... 47

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 2.3.8 Challenges for academic research in cre ................................................................. 49

2.4.3 Organisational FACTORS ...................................................................................... 50

2.4.4 Human factors ......................................................................................................... 51

2.5 Chapter summary ...................................................................................................... 53

CHAPTER 3: RESEARCH METHODOLOGY AND DESIGN ............................................ 54

3.1 Introduction .................................................................................................................... 54

3.2 A case study area ........................................................................................................... 55

3.3 Research design ............................................................................................................. 55

3.3.1 Research approaches ............................................................................................... 55

3.3.2 Measurement instrument ......................................................................................... 56

1.3.2.3 Reliability and validity ......................................................................................... 59

1.4 Data collection methods ............................................................................................ 60

Primary data ..................................................................................................................... 60

Secondary data ................................................................................................................. 60

1.5 Data collection process.............................................................................................. 60

1.6 Sampling design ........................................................................................................ 60

3.6.1 Target population .................................................................................................... 61

3.6.2 Sampling frame and sampling location ................................................................... 61

3.6.3 Sampling technique ................................................................................................. 61

3.6.4 Sampling size .......................................................................................................... 61

1.7 Treatment of bias ....................................................................................................... 62

3.7 Data processing .............................................................................................................. 62

1.8 Data analysis ............................................................................................................. 63

3.10 Limitations of the research design ............................................................................... 63

3.11 Confidentiality and ethical considerations ................................................................... 63

3.12 Chapter summary ......................................................................................................... 63

CHAPTER 4: DATA PRESENTATION AND ANALYSIS.................................................. 65

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 4.1 Introduction .................................................................................................................... 65

4.2 Response rate ................................................................................................................. 65

4.3 Profile of the respondents .............................................................................................. 65

4.4 Data presentation, analysis, and discussion ................................................................... 66

4.5 Findings addressing objective 1 ................................................................................. 66

4.6 Findings addressing Objective 2 ................................................................................ 80

4.7 Findings addressing objective 3 ................................................................................. 90

4.8 Hypothesis evaluation .................................................................................................... 92

4.8.1 Hypothesis 1 ............................................................................................................ 92

4.8.2 Hypothesis 2 ............................................................................................................ 92

4.8.3 Hypothesis 3 ............................................................................................................ 93

CHAPTER 5: SUMMARY, CONCLUSION, RECOMMENDATION, AND FURTHER

AREAS OF STUDY................................................................................................................ 94

5.1 Introduction .................................................................................................................... 94

5.2 Summary of findings of the study .............................................................................. 94

5.3 Conclusions and implications of the study .................................................................... 95

5.3.1 Conclusions and implications of the study .............................................................. 95

5.3.2 Implications on academia and society ..................................................................... 96

5.3.3 Conclusion ............................................................................................................... 96

5.4 Recommendations .......................................................................................................... 96

5.5 Limitations ..................................................................................................................... 96

5.6 Further areas of study..................................................................................................... 97

5.7 Chapter summary ........................................................................................................... 97

REFERENCES ........................................................................................................................ 98

APPENDIX 1: RESEARCH QUESTIONNAIRE ................................................................ 105

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xiii
CHAPTER 1: BACKGROUND AND PROBLEM FORMULATION

1.1 Introduction

This research proposal is based on a proposed topic which is titled ‘An assessment of
difficulties faced by corporate real estate managers in Botswana.’ The variables that will
be considered for this study is the dependent variables, ‘difficulties faced by corporate real
estate managers’ and the independent variables which are categorized factors influencing weak
enforcement in groups such as corporate, skill, organisational and human factors.

1.2 Background of the study

1.2.1 Global perspective
Joroff et al. (1993) has termed CRE as the 'fifth resource' after the traditional resources of
people, technology, information, and capital. Real estate is traditional perceived as a cost centre
and is manage passively. But as a business resource, real estate constitutes the second highest
category of costs after salaries. Thus, there is a need to manage corporate real estate effectively
and efficiently.

The seminal work on corporate real estate is by Zeckhauser and Silverman (1981 and 1983)
who had surveyed major corporations in US and found that the average firms’ real estate assets
is about 25% of total assets with manufacturing firms constituting 40% of their sample. Veale
(1989) replicates and expands the earlier study by Zeckhauser and Silverman (1981) and
generally confirms their results.

The total value of the real estate stock in the US in 1990 was about US$8.777 trillion. Corporate
companies owned US$1.633 trillion out of the total $2.655 trillion commercial real estate in
the US (DiLuia, Shlaes and Tapajna 1991).

Further research on the level of real estate ownership by non-real estate companies have been
conducted internationally. Results of these studies show significant ownership of real estate
which range from 25% to 40% of their total assets by non-real estate firms:

(a) United States of America (Veale 1989; DiLuia, Shlaes and Tapajna 1991; Johnson and
Keasler 1993),

(b) New Zealand (Teoh 1993),

(c) Malaysia (Iskandar 1996),

(d) Europe (Bon 1998)

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(e) Germany (Schaefers 1999),

(f) Singapore (Liow 1999; Ong and Yong 2000 and Liow 2001)

(g) Ireland (Roulac et. al. 2002).

Hence there is a need to control corporate real estate as it impacts on the costs of the
companies. Property is an essential factor of production but a costly one. Many companies have
little idea of their property costs and the extent of their interests and their value. Real estate
also requires skills that differ from running business profitably (Hwa, 2003).

According to (O’Mara, Page III, & Valenziano, 2002) the planning and management of
corporate real estate remains a challenge for many organisations in today’s highly volatile
world economy. While companies are facing faster rates of change, greater levels of
competition, revolutions in technology and changing customer demands, the real estate, which
houses the company’s activities remains as a specialised, expensive, visible, long-lived and
still necessary asset. Real estate requires long-term commitments in a very short-term world.
The ultimate goal of any corporate resource is to enable the company’s strategic objectives,
while achieving synergy across lines of business and managing the risk of longer-term
commitments. Compared with other corporate resources such as human resources, information
systems and core competencies, however, there is a paucity of research and frameworks to
improve corporate real estate activities. What little work that has been done on corporate real
estate decision making has focused on the planning and management of US-based corporate
real estate assets.

1.2.2 Regional perspective

In African countries, like in many parts of the world, capital commitment to CRE seems to be
on the increase within the last two decades. Activities and involvements of corporate
organisations are becoming more visible in the RE market (Oladokun, 2015). During this
period, corporate organisations like banks, insurance companies, oil companies and a host of
other organisations are seen to be acquiring RE (space) for their business activities (Onamade
and Adejugbe, 2014). According to these authors, emphasis seems to have been shifted from
renting to owner occupation in order to use RE as a means of brand identity.

According to (Oladokun, 2015), in Africa, however, CRE executives seem to still identify and
treat RE management as a non-core activity and very fragmented function across business
units. It can then be said that CRE in African countries is an undervalued asset in a company’s

2
business assets, which require little or no training to manage. In addition, while the capital
commitment to RE appears to be high on the balance sheet of corporate organisations relative
to other major costs, there seems to be few or no record of the contributions of RE to achieving
the objective of the organisation so as to justify the huge investment in RE, which is always
the second largest cost of organisations after staff salary (Oladokun, 2011). This is because
while many corporate organisations (especially the banks) fail to exploit the opportunities of
enhancing their financial status by effective CREM, many of them are currently facing
difficulty regarding required operational funds for the running of their core businesses (Sanusi,
2010). Nevertheless, the erstwhile practice of reactive management of RE as an investment
asset has changed drastically and the strategic view of CRE requires organisations to treat RE
in an active manner, since its cost comes second to payroll at 20%-40% of business value
(Veale, 1989).

The above have posed serious problems and challenges to corporate executives and
shareholders in the quest to wriggle out of the liquidity crisis that is rocking many of the
corporations because of their failure to tap the benefits of effective CREM to leverage their
business operations. Therefore, the question remains as to whether organisations in African
countries like Nigeria manage their CRE in such a manner to ensure that it contributes
significantly to achieving corporate objectives (Oladokun, 2015).

1.3 Brief preliminary literature review

1. Corporations are devoting resources to integrating the real estate mission with the company's
key business units in order to offer value to the corporate real estate function. Relationship
management is a tool used in the real estate sector and applied to significant client business
units to focus attention on the need for a better understanding of the "business of business."
Alignment can only happen when corporate real estate groups thoroughly comprehend and
advocate for the lines of business. The paper looks at the approach and techniques utilized
to align with Sprint's business. (Roper, 2001)
2. The goal of the research was to investigate how corporate real estate (CRE) managers at
higher education institutions construct CRE plans and operational decisions in order to align
CRE with the institutions' corporate strategies. At 13 big Dutch universities of applied
sciences, an analytical alignment framework was established and utilized to investigate the
potential and real linkages between CRE management and corporate management. The data
was gathered through a content analysis of these universities' strategy plans as well as

3
 interviews with CRE managers. The findings of the study revealed numerous layers of how
CRE managers strive to align CRE with corporate goals in order to give value to the
company. The current CRE strategies tend to be more closely connected with corporate
strategies than with the CRE strategies advocated (Beckers, Van der Voordt, & Dewulf,
2015).
3. The goal of this research is to determine how to quantify corporate real estate (CRE)
performance and how value can be contributed to the core business. Interviews with 11
senior executives from three globally famous organizations, one global financial institution,
and two corporate advisory firms were used to analyze the necessary literature and perform
primary research. The conclusions of this study showed that CRE may be leveraged to
provide value to a company's core business, both physically and behaviorally. Value can be
added by aligning aims and objectives with the business, conducting portfolio analytics on
a regular basis, spanning size, cost, space, retention, and productivity, and optimizing
shareholder worth. The study's key finding is that CRE can bring value to a company's
bottom line. Corporate real estate asset managers (CREAMs) must shift their focus from the
physical to the behavioral environment in order to boost productivity. (Langford & Haynes,
2015)
4. Corporations are devoting resources to integrating the real estate objective with the
corporation's key business units in order to add value to the corporate real estate
function. Relationship management is a tool used in the real estate sector and applied
to significant client business units to focus attention on the need for a better
understanding of the "business of business." Alignment can only happen when
corporate real estate groups thoroughly comprehend and advocate for the lines of
business. The paper looks at the approach and techniques utilized to align with Sprint's
business (Roper, 2001).

5. (Keenan, 2016) This study is based on a conceptual framework that aims to connect
sustainability, resilience, and adaptation on a theoretical and practical level. The
methodology is demonstrated through a case study of Goldman Sachs' (a multinational
investment banking and investment management company) corporate real estate (property)
strategy created throughout the consolidation and development of its corporate headquarters.
The purpose of this case is to determine the existence and nature of the connections between
sustainable corporate real estate plans, resilient operations planning, and the firm's adaptive
capabilities. The firm's potential to adapt and be resilient to changing situations has been

4
 positively enhanced by the firm's sustainable corporate real estate policies, according to a
supplementary argument. The findings back up the notion that these links exist, as well as
the idea that sustainability promotes adaptive capability and operational resilience. It is,
however, still an open subject.

6. (Tay & Liow, 2006) In comparison to Europe and North America, Asian corporate real
estate management (CREM) approaches have received little attention. This study is an
attempt to improve Asia's current understanding of CREM. Part I of this research presents
an overview of CREM practices among Singapore's MNCs and listed enterprises. A total of
97 companies were polled on three different aspects of corporate real estate management:
corporate real estate planning, corporate real estate organizational structure, and corporate
real estate performance. In general, corporate real estate (CRE) is under-managed among
MNCs and listed companies in Singapore, according to the report. The most important task
is to raise awareness of the importance and relevance of proper CREM practices. The second
part of this research focuses on CRE performance. The direct and indirect effects of
performance factors on corporate real estate are investigated using a data-driven analytical
technique. The findings show that

7. The goal of this paper is to show how real estate strategies may contribute value to a
company's core business, giving corporate real estate managers a tool to show corporate
officers how real estate adds value. The authors investigate common techniques to designing
real estate strategy and monitoring effectiveness by reviewing existing research and
interviewing 26 corporate real estate executives. They then create a model that shows how
real estate provides value to a company and how that value can be quantified. Many
businesses are unaware of how real estate provides value to their operations. While they
may have a corporate real estate plan, it is frequently established independently of the
broader business strategy. Furthermore, many organizations' performance measures are
entirely focused on cost, rather than value added. The contribution of corporate real estate
to the basic goal of wealth maximization can be significant (Lindholm & Levainen, 2006).

8. The goal of this study is to look into how businesses use corporate real estate to support
their competitive strategies. It gives a theoretical and empirical review and analysis of
effective real estate and competitive strategy combinations for businesses. The study
develops a model that incorporates three different real estate tactics as well as three different
sorts of competitive strategies. The approach is applied in case studies of ten multinational
corporations in the Netherlands, which explain and assess the firms' real estate – and
5
 competitive strategies. All three competitive strategies are supported by a standardized real
estate strategy: lowest costs, differentiation, and focus. A competitive strategy of
differentiation and differentiation-focus is supported by a value-based real estate strategy,
but not by a competitive strategy of lowest costs or lowest costs-focus. Finally, an
incremental real estate strategy is unclear and does not assist any of the three competitive
strategies. The paper develops a literature-based argument (Singer, Bossink, & Vande Putte,
Corporate real estate and, 2007).

9. The goal of this study paper is to give corporate real estate executives with a tool for
identifying and improving corporate real estate's contribution to corporate strategy. A
measurement instrument is created using a theoretical framework in which nine corporate
strategic driving forces are connected with seven additional values of real estate. The tool's
practical application is demonstrated by evaluating the contribution of corporate real estate
to corporate strategy at 14 multinational firms situated in the Netherlands. Many companies
still don't have enough information on how real estate decisions affect their bottom line. As
a result, senior management and other stakeholders have a tough time grasping the true value
of corporate real estate. Prior research on corporate real estate's contribution to corporate
strategy has generally focused on identifying distinct driving variables or tying specific
property decisions to corporate strategy. This paper, on the other hand, reveals However, in
a comprehensive management tool for portfolio analysis and strategy creation, this article
reveals the link between basic drivers of corporate real estate and corporate strategy
(Scheffer, Singer, & Van Meerwijk, 20006)

10. Managing corporate real estate faces greater challenges than only changing real estate
features. While operational companies aim for greater autonomy, corporate headquarters are
increasingly attempting to coordinate company resources and competencies. The impact of
the corporate context on the role and position of corporate real estate management,
according to the authors, is underappreciated. This article discusses the effects of changes
in company structure and tactics, as well as a new viewpoint on corporate real estate
management. (Krumm, Dewulf, & De Jonge, 1999)

11. Although real estate is inherently rigid, corporate real estate managers are increasingly
required to develop strategies to attain flexibility. Shorter planning horizons increased
organizational experimentation, and mergers and acquisitions are just a few of the factors
driving the demand for more flexible resources. Recognize that real estate is often evaluated
from a range of perspectives: as a physical, functional, and financial asset. This can help

6
 corporate real estate managers obtain a better understanding of the situation. Each of these
viewpoints leads to an own source of adaptability. Corporate real estate managers are
concerned with characteristics of design, such as floorplate sizes, column placement, and
building services, as a physical asset. Corporate real estate managers regard what activities
can be carried out inside a facility as a functional asset. Corporate real estate managers assess
the property as a financial asset Corporate real estate managers regard what activities can
be carried out inside a facility as a functional asset. Corporate real estate managers assess
contract terms and the capacity (and cost) to terminate those agreements as a financial asset.
Each of these types of flexibility is necessary at different periods and for different reasons
during an organization's life cycle. Considering what an organization's core and periphery
real estate requirements are, perhaps the most suitable way to look at the issue is on a
portfolio-wide basis. This method necessitates a different type of asset analysis, but it can
give a robust foundation for a corporate real estate manager to work toward the elusive
objective of flexible real estate. (Gibson, 2000)

12. The Corporate Real Estate Portfolio Alliance performed extensive research into corporate
real estate portfolio management and developed a number of new practices and analytical
methods. A number of papers in this issue of the Journal of Corporate Real Estate resulted
from the research. This paper provides an overview of the corporate real estate organizations
and researchers involved, the research methodology and its findings. (Bomba, 1999)
13. (Singer, Bossink, & Putte, 2007) The goal of this study is to investigate how companies use
corporate real estate to assist their competitive strategy. It gives a theoretical and empirical
review and analysis of effective real estate and competitive strategy combinations for
businesses. The study develops a model that incorporates three different real estate tactics
as well as three different sorts of competitive strategies. The approach is applied in case
studies of ten multinational corporations in the Netherlands, which explain and assess the
firms' real estate – and competitive strategies. All three competitive strategies are supported
by a standardized real estate strategy: lowest costs, differentiation, and focus. A competitive
strategy of differentiation and differentiation focus is supported by a value-based real estate
strategy, but not by a competitive strategy of lowest costs or lowest costs-focus. Finally, an
incremental real estate strategy is unclear and does not assist any of the three competitive
strategies. The paper develops a model based on the literature. Academics can use the
findings of the qualitative research to develop new research that qualifies and quantifies the
relationship between various aspects of real estate – and competitive strategy.

7
14. The authors discovered that successful management models for corporate real estate (CRE)
companies begin with integrated, strong processes, not well-designed organizational charts,
based on their recent client engagement experience and benchmarking studies. Because
corporate missions can quickly shift from high growth to cost reduction, engaging in a
strategic planning process that not only aligns the facilities infrastructure with the core
business, but also drives CRE organizational initiatives related to processes, people, and
enabling systems is critical to successful integration of all CRE elements. This paper aims
to provide a practical framework for CRE executives to review changes to the core business
and determine the impact these changes will have on the CRE portfolio and organization..
(Acoba & Foster, 2002)
15. Input-output modeling can predict the advantages of corporate real estate developments with
accuracy. The purpose of this article is to discuss the economic and employment effect
analysis methodologies utilized in input-output modeling, as well as to identify resources
for corporate real estate executives working with community groups and government
authorities. Corporate real estate professionals can more successfully explain the value of
corporate activity to a community if they understand this topic. An example of economic
impact report content is included in an effect analysis case study. For corporate real estate
site selection, facility expansion, and other community relations projects, input-output
modeling is an excellent analytical tool. This study focuses on the corporate necessity to
demonstrate project contributions to community economic vitality, as well as the major
difficulties in corporate/community interactions. As political, special interest, and public
perceptions of business expansion and development become more entrenched, corporate real
estate executives and specialists must employ effective tactics to counteract these trends A
overview of input-output economic modeling approaches, model application, important
terminologies, a case study of a $2.1 billion expansion project, and a sample outline of an
effect analysis report are presented in this paper. This method offers a good conceptual
framework, terminologies, and the application of an economic and employment impact
approach to calculating the entire contribution of corporate real estate activity in a
community or region. Demonstrates methods for calculating economic and employment
multipliers as a result of corporate project impacts that are direct, indirect, or induced. The
findings will aid corporate/community relations experts by improving their understanding
of economic repercussions. This paper provides an overview of a useful modeling technique
for precisely estimating the economic and employment contributions of a new corporate real

8
 estate project to the neighborhood. Emerging issues in corporate/community interactions are
highlighted, as well as resources (Musil, 2011).

16. The goal of this article is to explain the notion of times cape and look at how it affects
corporate real estate planning, including the people, process, space, and technology
elements. This research employs a qualitative approach to secondary data analysis in order
to establish a conceptual framework for corporate real estate strategy based on times cape.
Strategic corporate real estate management requires a lot of time. The timescape for
corporate real estate plans is made up of seven major parts. This is a conceptual work, and
more empirical research is needed to back up the claims made here. The importance of
incorporating timescape into business actual strategy creation was clearly underlined in the
article. The discussion on the impact of timescape on corporate real estate is useful in
motivating managers in a hyper-competitive global business landscape to reconsider their
current tactics. (Too & Harvey, Accommodating “accelerating” time: the use of timescapes
in corporate real estate strategies, 2009)

17. The goal of this article is to demonstrate how international organizations may use real estate
to enhance company identity and convey brand values in order to project a favorable image
in today's competitive environment. A literature study, seven case studies involving the
investigation of business records and in-depth interviews with marketing professionals and
real estate advisers, and a cross-case analysis demonstrating the integration of brand core
values into major multinationals' real estate strategies All organizations implement brand
values in their location strategy, building strategy, workplace strategy, and portfolio
management level, but in different ways and with distinct focus points, according to the
research. Sustainability, reliability, transparency, innovation, and people-oriented values are
the most widely employed brand values. Both internal and external stakeholders, including
as customers and investors, are considered while developing branding policies. (Khanna,
van der Voordt, & Koppels, 2013)

18. Twenty-six international corporations in six industrial groups are compared in terms of their
global dispersed corporate real estate operations and decision-making processes.

Fewer levels between the CRE executive and the CEO, frequent CRE meetings with
senior management, a broad spectrum of authority for facility and real estate operations,
and an executive committee for real estate problems are all signs of a high-performing
CRE organization. CRE groups with a strong track record receive more strategic

9
 planning information, have more authority and power, and have more explicit
regulations and standards. Better exchange of planning information is also associated
with relationship management with business units. Cultural barriers, finance concerns,
a lack of local expertise/market knowledge, corruption in locations, and a lack of a
standard/streamlined process are some of the challenges faced today by enterprises with
big worldwide real estate portfolios. (O'Mara, Page, & Valenziano, 2002)

19. The purpose of this study is to examine if there is alignment between corporate real estate
strategy and corporate strategy for non-property companies listed on the Johannesburg
Securities Exchange, as well as the financial impact of such alignment. The research
included qualitative as well as quantitative, with a focus on non-property companies listed
on the Johannesburg Securities Exchange. The qualitative portion of the study entailed
examining the organizations' annual reports to identify the presence and usage of corporate
real estate strategies, as well as their alignment with corporate strategy, as well as the
extraction of financial indicator data. The quantitative section of the study used multivariate
analysis to identify and quantify the relationship, if any, between corporate real estate
strategy and the financial performance metrics identified. The CRE techniques used were
the independent factors, while the share price was the dependent variable. The
methodologies utilized in this study had previously been used in European and Asian
investigations, which helped to ensure validity and reliability. According to the report, the
most commonly adopted strategy by businesses (47 percent) is one that streamlines
production, operation, and service delivery. Consumer goods, healthcare, and
telecommunications appear to be the industries with the most alignment. The return on
shareholder funds has a high positive link with the stock price. Flexibility has a significant
positive coefficient as a corporate real estate strategy, indicating a favorable association with
share price. (Ntene, Azasu, & Ansah, 2020)

20. This study examines the dangers that come with corporate real estate (CRE). The author
begins by considering corporate risk in general and the context in which CRE choices are
made. The types of risk associated with CRE usage are next evaluated, starting with
development risks and then categorizing the remaining risks into three categories: financial,
physical, and regulatory CRE hazards. Due diligence, avoidance, insurance, hedging, and
diversification are all possible risk management measures for reducing the risks connected
with CRE usage. Finally, there are conclusions and recommendations for risk accounting in
corporate real estate management (CREM). The consideration of the risks associated with

10
 CRE usage serves as a springboard for future, more extensive discussions of risk in CREM,
as well as providing a fresh viewpoint on CRE asset management (Huffman, Corporate real
estate risk management and assessment, 2002).

21. To investigate the impact of corporate real estate ownership on the stock performance of
international retail companies. A total of 454 retail businesses were divided into three
geographic zones and six subsectors. We use balance sheet data to calculate corporate real
estate holdings and link them to risk and return characteristics of specific companies.
Corporate real estate ownership varies substantially between subsectors, according to our
findings. Differences in geography and real estate customisation demands account for this
discrepancy. Retailers who consider real estate's microlocation to be a major value driver
tend to possess more of it. In general, corporate real estate ownership is associated with high
relative performance for retail enterprises, in contrast to the negative performance effects
reported in other industrial sectors. Even though we try to include as many companies as
possible in our sample, we still have sample size restrictions when comparing sub samples.
Our findings demonstrate how owning real estate rather than renting it has an impact on
merchants' long-term profitability. Whereas the majority of the expanding literature focuses
on sketching the influence of real estate ownership using theory and isolated situations, we
do not provide numerical proof based on a global dataset (Brounen, Colliander, & Eichholtz,
Corporate real estate and stock performance in the international retail sector, 2005).

22. With the massive real estate divestitures that have occurred in recent years, some
stakeholders have begun to ask if these short-term operations may have an impact on a
company's long-term competitive edge. While it appears plausible that property divestitures
improve a company's financial status from the standpoint of the "owner," there is no
quantifiable equivalent for the loss of space utilization and flexibility from the standpoint of
the "user." As a result, real estate decision-making is dominated by the investment
perspective and is based on insufficient information. This study introduces a formal decision
model that describes the scenario of corporate real estate decision makers in order to better
align corporate real estate and real estate investment tasks. They must weigh the benefits of
real estate holdings in terms of entrepreneurial freedom vs the financial opportunity cost of
freeing up cash. Using a decision-making scenario as a model. Using a prototype choice
situation, the study shows how a real option strategy can help the decision maker improve
the underlying information basis for property divestment decisions. As a result, real estate
decisions benefit in two ways: they are more visible, and, more significantly, they are better

11
 designed if the firm intends to use real estate holdings to boost its overall value. (Pfnuer,
Schaefer, & Armonat, 2004)

23. Ireland's corporate activity has increased significantly as the country's economy has
benefited from massive inward investment. The goal of this article is to look at how real
estate plays a role in corporate decision-making in Ireland. Corporate real estate issues are
first examined to provide context for a survey of corporate occupiers in the Republic of
Ireland and Northern Ireland. The findings show that corporations have a lot of professional
and practical knowledge with real estate, but they haven't completely utilized it in building
a proactive corporate strategy. Although there appear to be variations between indigenous
and internationally parented enterprises, real estate plays a mainly traditional role within
organizations. On a global scale, comparisons are made with other similar surveys (Adair,
et al., 2003).

24. The goal of this article was to look at how globalization has affected corporate real estate
strategies. It aims to uncover corporate real estate competencies that are critical in today's
hypercompetitive business environment. In order to evaluate the corporate real estate
capabilities for a hypercompetitive business climate, this article uses a qualitative approach
to assess secondary data. Globalization is an established phenomenon that is significantly
altering the way people do business today. Corporate real estate must create new skills to
support global business strategy in the face of global hyper competitiveness Flexibility,
network organization, and managerial learning capacities are among them. This is a
conceptual work, and more empirical research is needed to back up the claims made here.
Consequences in practice - Given the heightened level of uncertainty in the economic
climate, namely hyper competitiveness, organizations must build dynamic capabilities that
are difficult to mimic in order to preserve a "momentary" competitive edge. In this regard,
the conclusions of this paper are beneficial in guiding corporate real estate managers. In two
aspects, this paper is unique. First, it applies the capabilities concept of strategic
management to corporate real estate. Second, it connects the concept of capabilities to the
primary challenge that firms confront today, namely globalization, as a means of
maintaining competitive advantage. (Too, Harvey, & Too, 2010)

25. Corporate real estate (CRE) refers to land and buildings owned by businesses that aren't in
the real estate industry. This paper identifies and discusses three major issues regarding the

12
 authors' understanding of strategic CRE analysis and management from the perspectives of
end-users, corporate finance, and capital markets, given the large concentration of corporate
wealth in real estate and the fact that management is committed to increasing shareholders'
wealth. The paper examines recent research and data on these topics, as well as future
research that promises to be both hard and fruitful. (Hiang & Ooi, 2006)

26. 29. Traditionally, real estate portfolio performance has been quantified in terms of internal
rates of return or expenses per square meter (or per FTE). Over the last few years, a rising
number of companies have focused on implementing performance criteria based on
shareholder value. Although the rise of value-based management has modified corporate
measurements, real estate contribution is typically measured in terms of cost savings or
capital minimization. Other, nonfinancial, externalities emerging from expert real estate
management are rarely aggressively benefited by corporations. The purpose of this article
is to emphasize the importance of corporate real estate management and its contribution to
a corporation's financial and nonfinancial performance (Krumm & de Vries, 2003).

27. Driven by Western companies’ requirements for efficiency and effectiveness, a trend
towards outsourcing of business activities to India and other low-cost countries commenced
in the early 1990s and has continued to grow at a surprisingly fast pace. In a relatively short
timeframe India has become a global hub for back-office services, although the effect on the
urban cities is yet to be fully comprehended. As American and European companies
continue to relocate their information technology services and other back office works to
the subcontinent, there has been a considerable flow-on effect on Indian corporate real
estate. This paper addresses two key questions. Firstly, the factors important for Western
companies’ outsourcing of organizational activities

to India, and secondly, the effect of business outsourcing on corporate real estate
locational requirements in India. A survey of corporate real estate representatives in
India and the UK was conducted with the results providing an insight into the present
state and possible future direction of outsourcing for India. This research presents a
unique insight into the impacts of Western business outsourcing on corporate real estate
in India, and presents findings that are useful to both organizations seeking to relocate
business activities to India and for property market analysts looking to understand
drivers behind this sustained demand for Indian corporate real estate. (Naidu, Reed, &
Heywood, 2005)

13
28. This paper aims to increase the awareness of developing countries’ corporations and
academics concerning the significant importance of CRE holdings in corporate asset
portfolios. It seeks to demonstrate how corporate real estate management can be employed
by organizations in developing countries to add value to overall business value by adopting
quantitative evaluation measures to determine space utilization and occupation of
organizations. The methodology involved the review and analysis of previous related papers
in respect of the subject in advanced countries as a guide to practitioners in developing
countries. The paper identified the various concepts and attributes of real estate that make it
a unique value-adding product to a business organization. The paper outlines performance
measures that are in common practice in advanced countries for use in developing countries.
The practice of corporate real estate management is still relatively new to African countries
like Nigeria. The implication is not benefiting from value contribution that real estate could
make to business organizations. Understanding real estate performance measures is a major
pathway to tapping the benefits of real estate. The paper is a useful guide to corporate real
estate managers in developing countries towards employing real estate holdings to increase
the overall value of their companies. (Oladokun, 2010)

29. This paper aims to examine the skill requirements for the practice of corporate real estate
management (CREM) in Nigeria. Questionnaires were distributed to 270 practicing estate
firms in Lagos State, Nigeria, 145 final year students of Estate Management in Obafemi
Awolowo University, Ile Ife, Nigeria as well as corporate real executive officers of the 24
recapitalized commercial banks, 21 insurance and five GSM communication companies in
Nigeria. A total of 260 questionnaires (58 per cent) were returned and found useful for the
study. The study adopted the descriptive method of percentages, mean and proportion
method for analysis. The study found that in rank order, the skill requirements for CREM
were financial performance skill, investment in corporate strategy, productivity skill, space
efficiency management skill and customers and employees’ management skill. The mean
figures for the five factors are 5.0, 4.8, 4.8, 4.73 and 4.67 respectively. The results of the
analysis also showed further that the portfolio efficiency skill had a mean value of 3.58 and
was rated by the respondents as the least skill required for corporate real estate management.
Limiting the scope of the study to CRE executives and practitioners in selected service
industry and students of a university might pose a great challenge to the representativeness
of the findings. (Oladokun, 2012)

14
30. This study examines the financing methods used by corporations to acquire real estate for
their operations. It also examines the opinion of managers about the factors that they
consider in choosing financing methods. The data were provided by a survey questionnaire
that was sent to members of the International Association of Corporate Real Estate
Executives. It was found that companies rely on internal financing (operating cash flows)
and external financing such as long-term leasing, joint ventures, property mortgages and
sale/leaseback arrangements. The top-ranked methods of finance include operating cash
flows, property mortgages, leasing and sales/leasebacks. Use of real estate investment trusts,
collateralised mortgage obligations and mortgagebacked securities were the lowest-ranked
forms of financing. Managers tend to look at tax advantages of debt and availability of cash
flows in deciding which financing methods to use, rather than theoretical corporate finance
factors such as bankruptcy cost. There were significant differences in opinion by industry
and by company size regarding the use of cash flows and the impact of debt financing on
common stock prices. (Redman, Tanner, & Manakyan, 2002)

31. 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. 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. 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. (Liow & Ingrid, A combined perspective of
corporate real estate, 2008)

32. This paper aims to analyse the corporate rent-vs-buy decision on real estate through the
trade-off theory and default option in the framework of a corporation that aims to optimise
its capital structure. The methodological core of this paper comprises the trade-off theory
that approaches the optimal capital structure by counterbalancing debt tax savings with

15
 bankruptcy costs. Impacts on the default option and the default barrier are made explicit.
The paper also explores the practical applicability of the renting scenarios in the European
context by examining the regimes of real estate investment trusts in different countries from
the demand-side of commercial renting. Analytical relationships with tax savings,
bankruptcy costs, default option and default barrier are identified for the renting-vs-buying
real estate decisions. (Bosch-Badia, Serrats, Gubau, & Rodon, 2017)

33. The outsourcing of non-core business activities has recently mushroomed throughout the
world as organisations seek reduced cost and strategic business advantage in an increasingly
competitive marketplace. A component of this overall trend has been a dramatic increase in
the extent to which real estate asset management functions of nonproperty investment
organisations have been taken over by ‘external service providers’. This study is the first in
New Zealand to examine current practice and emergent trends and to identify outsourcing
issues and problems in detail. Via a survey of 457 organisations, the reasons behind the trend
to outsourcing are identified, as are the types of services outsourced; the basis of selection
of service providers; the skills and attributes required of real estate professionals; and the
success or otherwise of outsourcing experiences. (McDonagh & Hayward, 2000)

34. The purpose of this paper is to examine empirically the financing hypothesis of Lang et al.
for asset sales in the context of corporate real estate transactions. Exploiting the concept that
monitoring can reduce agency problem of managerial discretion, this paper employs the
event-study methodology and regression analysis to empirically verify the hypothesis. The
empirical results show that the stock market responds more favorably to arm’s-length
corporate real estate sales by low agency-cost firm-years than those by high agency-cost
firm-years. The result supports the financing hypothesis that implies a negative relation
between stock market responses to asset sales and degrees of agency costs. (Lee & Lee,
2007)

35. This paper intends to respond the question that comes up to CRE managers when they
consider the outsourcing technique for their CRE management and portfolio. The question,
if it is possible to capture in the outsourcing contract sufficient flexibility to meet the
changing needs of the business and add value, addresses the existing debate on flexibility
arguing the suitability of the outsourcing structures for corporates portfolio. The paper
undertakes a methodological analysis, considering the main outsourcing deals in the UK and

16
 continental Europe and discussing the main theories on management outsourcing. Theories
of flexibility of CRE portfolios are considered and the main characteristics of the new REPs
discussed. The paper finds that it is possible to capture in the outsourcing contract sufficient
flexibility to meet the changing needs of the business and add value because a contract can
capture all the flexibility desired and it would add value as the properties would be used
efficiently. Two outsourcing contracts in the UK are explained in two case studies, which
support this. (de Zu´n˜iga, 2005)

36. Up to the 1980s the corporate competitive advantage was primarily focused on adapting the
corporation to the (changing) environment. In the last decades corporations have become
more aware of their resources and capabilities, and of the benefits of managerial attention
towards managing the corporate assets. The transition from a passive, reactive attitude
towards a proactive service oriented organization proves to be a difficult task. This paper
analyses the transition and describes an effort to identify products and services contributing
to the added value of corporate real estate management to the bottom line of the corporation.
(Krumm, Dewulf, & de Jonge, 1998)

37. (MBO) is used as a management instrument of corporate real estate management (CREM),
using cost targets as the yardstick of CREM success. In Switzerland, CREM success is
increasingly linked to cost reductions, with the cross-company corporate strategy often
requiring CREM to deliver a significant reduction in the level of cost. The cost concept used
is material for the agreement or stipulation cost of targets. As the presented analysis shows,
CREM has, for the most part, only very limited potential impact on costs. In particular, the
use of the occupancy cost concept (sum of all imputed costs as well as costs recognised in
the profit and loss account) poses a problem. This comprehensive cost type is determined
by the following factors, which are in many cases outside the control of CREM: • Book
value as per balance sheet • Depreciation period of the basic shell structure • Main objective
of the owner • Maintenance strategies • Degree of outsourcing of infrastructure
management. Therefore, where the corporate strategy centres around cost reduction, CREM
must be given the opportunity to control these drivers. This would require the inclusion of
CREM in the development of the cross-company corporate strategy, as otherwise the cost
targets would have to be restricted to individual cost types (costs recognised in the profit
and loss account). This is the only way to utilise a management instrument, such as MBO,
within CREM. (Kytzia & Stoy, 2004)

17
38. Planning for future real estate and facility needs in a highly uncertain competitive
environment can benefit from a four-stage process of demand forecasting. Based upon
research conducted within the Corporate Real Estate Portfolio Alliance and a review of
general business forecasting techniques, each successive stage relies on more abstract data
and increased dialogue about business strategy with the lines of business as uncertainty
about the future increases. Each stage requires increasing flexibility in the supply of real
estate as the range of probabilities around the forecast widens. (O’Mara, 1999)

39. (de Puy & van der Schaaf, 2000) Many corporate and public real estate managers are
challenged to prove their added value to both the organisation and the individual business
units or departments. Value can be added by product and by process. This paper elaborates
on ways to improve the corporate real estate portfolio management process in order to align
the real estate portfolio to the different needs of the organisation and thus add value to the
organisation by delivering a better product. To manage the real estate portfolio as a group
instead of individual properties, the longterm portfolio strategy should be translated into
short-term guidelines and clear performance measures in order to analyse alternatives and
the performance of the individual properties. These measures should be related to what the
stakeholders consider to be the added value of corporate real estate. The examples in this
paper will show how a corporate real estate manager can create a clear framework for
making real estate decisions on a day-to-day basis.

40. With corporations reinventing and changing themselves with increasing frequency and
speed, what is the real estate industry doing to enable that change? This paper presents the
perspectives of a corporate tenant, a developer and an interior designer to answer the
question of what some companies are doing to make workspace more flexible and to shorten
the cycle time for the processes by which workspace is constructed, procured and fitted-out
for new occupancy. The following questions will be answered: • In the low vacancy market
prevalent in so many parts of the United States, what strategies are corporate real estate
executives in high-growth companies using to acquire space fast?
• What trends are emerging in the industry to streamline the processes to build, acquire,
fit-out and manage space? • How is the industry changing its product to ensure that the
space that is delivered can meet a variety of users and uses as occupants churn through
the space in unforeseen ways? (Latshaw, Harmon-Vaughan, & Radford, 2000)

18
41. The aim of this paper is to describe the creation process of the model for identifying the
added value of corporate real estate management (CREM), implement the developed model
in a case organisation and test whether it works in practice. The study is carried out using a
constructive research approach, where the validity of the model built is tested through a
single, but in-depth, case study. The research presents the model for identifying the added
value of CREM, the theoretical connections from the empirical research and practical
implications of the developed model. Furthermore, the study presents the main step of a
constructive research approach and examines the applicability of this research approach to
real estate and facilities management-related research. (Lindholm A.-L. , 2008)

42. (Oladokun & Aluko, 2015) The paper aims to contribute to the empirically scarce literature
on corporate real estate management (CREM) strategies by providing meaningful insights
on the different strategies likely to contribute to business performance in a developing
country like Nigeria. Primary data collected using questionnaire administered on property
managers of the 105 business organisations in the list of registered companies with the
Nigerian Stock Exchange were used for the study. The questionnaire elicited information
on the real estate holding pattern and the adopted strategies for acquiring and managing real
estate assets. The data collected were analysed using percentages, mean and proportion
method. The study established that 41 per cent of the organisations were public
organisations. Others were private companies (31 per cent), government departments (18
per cent) and multi-nationals (10 per cent). The result indicated that 31.8 per cent had no
CREM strategy. Strategies used were: cost reduction (18.75 per cent), facilitate production
(20.17 per cent), flexibility (15.5 per cent), promote human resource objectives (10.86 per
cent), promote the marketing message (4.33 per cent), promote sales and selling delivery
(18.67 per cent), facilitate managerial process and knowledge (7.5 per cent) and capture real
estate value (6.5 per cent). The study concluded that CREM is a useful tool that the
organizations can make effective use of to improve their performance.

43. The purpose of this paper is to enable real estate managers to identify and evaluate
appropriate information technology (IT) solutions from the array of options available. The
authors explain the main components of IT solutions and provide a systematic approach for
evaluating, selecting, and maintaining a cost-effective IT solution, empowering corporate
real estate managers to make informed IT decisions. Corporate real estate managers can use
a systematic approach to evaluating hardware and software options to select a solution that
better serves business needs. (Gibler, Gibler, & Anderson, 2010)

19
44. Tools for real estate planning, acquisition, disposition and portfolio management have
improved dramatically over the past several years, creating new potential for corporate real
estate executives to deliver workplace solutions in a timelier, cost-effective manner
throughout the occupancy life cycle. As large ‘customers’ in the real estate industry,
corporate real estate (CRE) executives can impact the development and application of the
next generation of information tools. In addition, widely expanded access to market
information puts them in a more powerful position relative to other industry players.
These factors uniquely position CRE executives to take advantage of new possibilities.
(Schriefer & Ganesh, 2002)

45. To bring added value to the corporate real estate function, corporations are dedicating
resources to aligning the real estate mission with the major business units of the corporation.
Relationship management is a tool used within the real estate department and applied to
major client business units to bring the focus on the need for better understanding of the
‘business of the businesses. Only when corporate real estate groups fully understand and
advocate for the lines of business, can alignment occur.
The process and tools used to align with Sprint’s business are examined in the paper.
(Roper, 2001)

46. Annual real estate taxes are one of the largest and fastest-growing occupancy costs for
corporations owning or leasing real estate in the United States. An active programmer of
management, control and reduction of annual real estate tax assessments can be successful,
if a corporation is proactive and follows certain steps on a timely basis. (Ardern, 2000)

47. Corporate real estate management (CREM) is the most important minor matter in no
property companies. Therefore CREM must commit to and deliver significant financial
results in order to improve core business competitiveness. Ultimate valid criteria for success
are contributions to earnings per share (EPS) and free cash flow. Pragmatic ‘onsite’
solutions are required by business units within their planning horizons, thus speed is key to
success. This Aventis Real Estate case study presents an example of how a ‘non-core
activity’ has become an ‘other-core activity’ within a globally operating pharmaceutical
company. This paper demonstrated how measurable results can be repetitively delivered
with a lean team and optimized financial deployment. (Kuhni & Christmann, 2004)

Table 1: Summary of preliminary studies

20
Area of study No of articles Authors Findings

Corporate real estate 11 (Hiang & Ooi, 2006 It appears that the CRE
strategies strategies in-use are more
Gibson, 2000
clearly aligned with the
Beckers, Van der Voordt, & corporate strategies than
Dewulf, 2015 with the espoused CRE
strategies.
Lindholm & Levainen, 2006
Scheffer, Singer, & Van
Meerwijk, 20006
Singer, Bossink, & Putte,
2007
Singer, Bossink, & Vande
Putte, 2007
Ntene,Azasu, & Ansah,
2020
Too, Harvey, & Too, 2010
Oladokun & Aluko2015
Adair, et al., 2003)

Corporate real estate 5 (Langford & Haynes, Only corporate real estate
performance planning and the existence
2015) (Brounen,
of a real estate unit have a
Colliander, & direct impact on corporate
Eichholtz, 2005) (Lee real estate performance

& Lee, 2007)

(Huffman, 2002)
(Krumm, Dewulf, &
De Jonge, 1999)

21
Corporate real estate 29 (Kuhni & Christmann, The study concluded that
management CREM is a useful tool that
2004 (Roper, 2001)
the organizations can make
(Oladokun, 2010) effective use of to improve
(Oladokun, 2012) their performance.

(Lindholm A.-L. ,
2008) (Gibler, Gibler,
& Anderson, 2010)
(Krumm, Dewulf, &
De Jonge, 1999)
(Kytzia & Stoy, 2004)
(de Puy & van der
Schaaf, 2000)
(Freybote & Gibler,
2011) (Tay & Liow,
2006) (Krumm,
Dewulf, & de Jonge,
1998) (Gibson, 2000)
(Acoba & Foster, 2002)

(de Zu´n˜iga, 2005)

(McDonagh &
Hayward, 2000)

(Stoy & Kytzia , 2004 )

(Hayward &
McDonagh, 2000)

(Schaefers, 1999)

(Veale, 1989)
(Ventovuori, Sarasoja,
Andelin, & Masalskyte,
2014) (Amakie,
Agyeman, & Bugri,
2019) (Zappile, 2004)

(Kmpf-Dern & Pfnur,

2014) (van der Voordt,
2017) (Pfnuer, Seger,
& Appel-Meulenbroek,

22
 , 2021) (McDonagh,
New Zealand, 2008)
(Roper, 2001)
(Schuur, 2016)

Corporate real estate 5 (Bosch-Badia, Serrats, Using a prototype

investment Gubau, & Rodon, choice situation, the
study shows how a real
2017) (Pfnuer, option strategy can help
Schaefer, & Armonat, the decision maker
improve the underlying
2004)
information basis for
property divestment
decisions. As a result,
real estate decisions
benefit in two ways:
they are more visible,
and, more significantly,
they are better designed
if the firm intends to
use real estate holdings
to boost its overall
value.

TOTAL 50

23
Emerging themes
CRE management
Corporate real estate concerns the management of buildings and parcels of land at disposal of
private and public organizations that are not primarily in the real estate business. An
organization that occupies space is in the real estate business and needs to manage it properly.
The issues, challenges, and goals of CRE are similar to that of human resources and IT. What
is different is the long-term nature of real estate assets. This requires an even greater emphasis
on business and general trends in so far as they could affect the location, size and nature of the
physical working environment.

CRE investment

Using a prototype choice situation, the studies shows how a real option strategy can help the
decision maker improve the underlying information basis for property investment decisions.
As a result, real estate decisions benefit in two ways: they are more visible, and, more
significantly, they are better designed if the firm intends to use real estate holdings
to boost its overall value.

CRE strategies

The study concluded that CREM is a useful tool that the organizations can make effective use
of to improve their performance.

CRE performance

Only corporate real estate planning and the existence of a real estate unit have a direct impact
on corporate real estate performance.

1.4 Knowledge gap

From the literature review presented above, it is evident that there are no studies that have been
done on the challenges faced by corporate real estate mangers in Gaborone. Some studies such
as Gillies & Dow (2002) were concerned with real estate strategies and the value it adds to
corporations even the importance of managing it. In addition, these studies are not in the
peripheries of the area which is the scope of this research. It can therefore be inferred that there
has been no extensive research on the challenges faced by corporate real estate mangers in

24
Gaborone. This area has been overlooked by existing literature and has not been fully explored
by academicians. This research makes a significant contribution to the existing body of
knowledge on corporate real estate management, and it is believed to be one of the first studies
that critically assesses the challenges faced by corporate real estate managers as well as the
factors affecting challenges faced by corporate real estate mangers in Gaborone.

1.5 Core problem identification

Corporate real estate managers are facing challenges that affect their productivity on day-today
basis in Gaborone, Botswana.

1.6 Problem statement

Today's corporate real estate management professionals face more complex situations than ever
before. The most difficult challenge for these experts are being forced to do more with the
ignorance of their profession by company executives. These departments must provide
excellent service while also adhering to regulatory requirements and producing reports. The
primary objective of CRE managers is to optimize use company owned asset potfolios to
increase the value of the organisation. However, the adoption of this objective,appears so far
to have been limited. While some countries have or are developing ways on the adoption of
corporate real estate managementt, others, such as Botswana, are in stasis in terms of
introducing and paying attention to corporate real estate managers in organisations. The lack
of implementation and ignorance of corporate real estate management has many consequences..
This has not only had a negative impact on the organisation but on the profession as a whole.

25
 1.7 Problem analysis diagram
The following are variables of the challenges faced by corporate real estate managers; twenty
factors were identified namely

Property market
Increasing
Lack of skill dominated by
expectations of
diversity investment
shareholders and
thinking
stakeholders

Unclear roles and

responsibilities of CRE
function.

Inability to report to the Increased

highest possible level in outsourcing of CRE
the organisation Difficulties faced by corporate
real estate managers.

Increase rate of
change Ignorance of real
estate at board level

Difficulty in creating a coherent

set of responsibilities that fit the
organisation goals. Conflicting
corporate goals
with CRE
managers
objectives
Poor structure of the
Poor communication
organisation and CRE
- between CRE
functions
managers and CRE
executives
Lack of planning
Poor communication
between CRE Limited
managers and CRE Figure 1: Problem analysis diagram accessibility to
executives latest
Lack of skill organisation
Inconsistent objectives
diversity
performance Conflicting corporate
Poor management management system
skills 28 goals with CRE
managers objectives
:
 1.8 Group factors (classification of variables)
The following are a classification of poor practices in management of corporate real estate;
Figure 2: Classification of variables

HUMAN FACTORS
CORPORATE FACTORS
• Poor communication
Underestimation of • Lack of planning
CRE value by • Lack of skill diversity
executives • Poo management skills
Ignorance of real estate at • Failure to maintain current knowledge
borad level • Failure to develop measures and demost
Limited accessibility to latest performance
organisation objectives • Poor problem solving skills
Conflicting corporate goals • Poor time management
with CRE managers objectives
CHALLENGES
inability to report to the FACED BY
highest possible level in the CORPORATE
organisation REAL ESTATE
MANAGERS

ORGANISATIONAL FACTORS
Providers do not provide
what CRE managers need
FINANCIAL FACTOR
Poor structure of the oranisation and
Insufficient funds CRE functions

Incosistent managemet system

Management costs
Inadequate resources

Unclear roles and esponsibilities of

CRE funtion

27
 1.9 Research objectives and questions

1.9.1 General research objectives

The primary objective of this study was to assess difficulties faced by corporate real estate
managers in Gaborone, Botswana. Therefore, the objectives of the study are;

1.9.2 Specific research objectives

From the general objective above, the specific objectives were formulated. The objectives are
as follows:

1. To identify the difficulties faced by corporate real estate mangers in Gaborone,

Botswana.
2. To assess the impact on productivity difficulties affecting corporate real estate
managers in Gaborone, Botswana.
3. To come up with solutions that will help eliminate difficulties faced by corporate real
estate managers in Gaborone, Botswana.

1.9.3 Research questions

The main research question was exploring why there are challenges in corporate real esta in
Gaborone, Botswana. The specific research questions are:

1. What are the difficulties faced by corporate real estate managers in Gaborone,
Botswana?
2. How do these difficulties impact productivity of the corporate real estate managers in
Gaborone ?
3. What are the solutions that can help encounter challenges faced by corporate real estate
managers in Gaborone, Botswana?

1.9.4 Hypothesis
The following proportions have been outlined in order to guide the research design, data
collection and data analysis. This will enable the researcher to meet the objectives of the
proposal.
1.9.4.1 Null Hypothesis; There are no main significant difficulties faced by CRE
managers in Gaborone, Botswana.
1.9.4.2 Alternative Hypothesis; There are significant difficulties faced by CRE
managers Gaborone, Botswana.
1.9.4.3 Null Hypothesis; there are no ways that can be adopted to deal with
difficulties faced by CRE managers in Gaborone, Botswana.
1.9.4.4 Alternative Hypothesis; There are ways that can be adopted to help deal
with difficulties faced by CRE managers in Gaborone Botswana

28
 1.10 Conceptual framework
Independent variable
Dependent variable

Corporate
factors

Difficulties faced by
Organisational corporate real estate
factors

Human factors

Financial factors

Figure 3: Conceptual framework

The conceptual framework therefore shows the relationship between the dependent and
independent variables. The hypothesized model clearly indicates that corporate factors,
organizational factors, human factors and financial factors influence difficulties faced by
corporate real estate managers in Gaborone. Factors identified in this model are consistent with
those similarly identified in other literature.

The figure above presents the developed conceptual framework on the level of corporate real
estate within non-real estate organisations. The independent variables used are corporate
factors, organizational, human and financial factors.

29
 1.11 Scope, limitations and delimitations

Scope and delimitations of a study are two research elements of which the study explains the
extent to which the research areas will be explored in the work and specifies the parameters
which the study will be operating. The scope of a proposal or research paper defines the topic
and boundaries of the research problem being investigated. As for delimitations, these are
characteristics that limit the scope and describe the boundaries of the study. They are factors
and variables not to be included in the investigation e.g sample size, location and population
traits in addition, it explains why specific choices were made while others were excluded.
Lastly, limitations are factors that relate to validity and reliability of the study. In other words,
they are characteristics of the research design and methodology that are out of control but have
an influence in the research findings (Theofanadis and Fountouki,2019). The scope, limitations
and delimitations of the proposal will be explained below;

1.11.1 Scope of the study

The study focused on assessing the difficulties faced by corporate real estate managers in
Gaborone, Botswana.

1.11.2 Limitations of the study

The proposal was limited only in Gaborone as it is the area which is easily and mostly accessible
with some much convenience to the researcher. Furthermore, that target population i.e
corporate real estate managers are mostly situated in the capital city and there is also high influx
of CRE managers in the city as compared to other areas in the country.

1.11.3 Delimitations of the study

The first delimitation is that this study collected and analysed information from Gaborone. This
is because a large number of stakeholders and beneficiaries of CRE are situated in the capital
city. The results of this research might not be applicable to other towns in the country.

1.11.4 Significance and importance of the study

1.12 Significance and importance of the study
1.12.1 Significance of the study

As discussed under the knowledge gap, the study wanted to close the gap in the existing
literature of CREM. Most studies have discussed the similarities between CREM and FM and

30
the practices of CREM. Therefore the study would contribute to the existing body of knowledge
on CREM by thoroughly examining the challenges faced by corporate real estate managers.

1.12.2 Importance of the study

Researchers in developing countries should start embracing the concept of CREM context in
order to understand the challenges faced by CRE managers and how the challenges can be
mitigated. The research elaborates how the challenges faced by CRE managers can be dealt
with. Therefore the outcome of this research will be of importance to researchers, tertiary
institutions, CRE managers to better understand the challenges faced by CRE mangers in
Gaborone.

1.13 Beneficiaries and benefits of the study

According to Kajiwara(2019) beneficiaries and benefits of the study are more in helping
researchers and students ( undergraduates) to be more aware of the research problem in many
ways. It also involves ways in which students can advance the learning process of their studies
or area of study.

1.14 Methodology used

1.14.1 Primary source data

According to ( Ajayi 2017) primary sources of data provides first hand and direct data and
information about an event, object, person or work of art. Primary sources of data are real time
data and data collected for addressing the problem at hand. It is more of information retrieved
on surveys. Raw data, original, eye witness accounts, questionnaire and interviews. This
research therefore used a questionnaire as the primary data source and provides data that has
never been collected or produced by other researchers.

1.14.2 Secondary source of data

Secondary data refers to information that has already been collected and already in existence
through primary sources. It is data that is readily availed for researchers to adopt and utilise for
their own researchers or thesis that is to say, data that has already been collected in the past. In
addition, secondary data is a collection process is rapid and easy. It involves data sources such
as publications, books, journals, websites and internal records (Goodwin,2012). Therefore, this

31
research adopted journals, online research reports, EBooks, library books, newspapers and
online articles as the main sources of secondary data.

1.14.3 Tertiary Source of data

(Hoffman 2017) Explained tertiary sources of data as information bases on a collection of

primary and secondary sources. It is a consolidation of primary and secondary data sources and
some of the tertiary sources can be used as an aid to find other sources. Tertiary data sources
are sources that index, abstract, organize, compile or digest other sources i.e it presents
summaries or condensed versions of materials usually with references back to the primary and
secondary sources.

1.15 Chapter organization of the study

This proposal is made up of three chapters that discussed the study in the following manner and
order:
1. The first chapter gave a clear introduction and problem formulation of the study. It
clearly provides the background of the proposal, the problem statement and goes on to
give justification on the scope, limitations, delimitations, benefits and organisation of
the proposal. It basically lays the foundation for the discussion to be carried out in the
succeeding chapters.
2. The second chapter basically and briefly gave an evaluation of the literature related to
the management practices of corporal real estate (CRE). The chapter discusses the
concept of management of corporate real estate on non-real estate organisations, its
significance and the effects of management practices of corporal real estate on the
performance of the organisations revenue.
3. The third chapters now specifically based its evaluation on research methodology and
design. It focuses in providing the framework of how data was collected, the population
and sample size to be used for the research. Furthermore, it explains the methods
adopted to analyse and present the data collected.

4. The fourth chapter contains an interpretation of the responses of the survey

questionnaires and interviews undertaken. In this section, the researcher will
quantitatively examine the survey and interview results pertaining to the research
findings in relation to the research questions and objectives formulated in chapter one.

32
 5. The conclusion to the research report will be gathered in the final chapter. There
will also be a dialogue of the degree to which additional research on the topic could be
pursued, as well as recommendations for the future. Following the conclusion, a list of
references will be provided, as well as an appendix containing a list of all relevant
survey and interview questions that will be used as an example.

1.16 Chapter Summary

This chapter introduced the main purpose or aim of the research study which is to access the
effects poor management of corporate real estate has on non-real estate organisations in
Gaborone, Botswana. It was able to explain the background, brief preliminary review, the
knowledge gap, problem identification, research problem statement. Subsequently the research
scope, limitations and delimitations was outlined, followed by the beneficiaries and benefits of
the study, methodology used the budget of the study, schedule of the study. Finally, the
proposed organisation of the proposal was presented.

33
CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

This chapter gives a general overview of the concept of corporate real estate management
practices as found in other studies carried out on the similar researches. The focus of this
chapter is to gain an insight into the definitions of CRE.

2.2 Concept of corporate real estate

CRE, or the provision of working environments, has been around for as long as people have
engaged in commerce. However, it was not until the early 1990's that the term CRE came into
general use. The main driver of increased focus on CRE was the fact that technology developed
to the point where organisations could choose their location. This freedom of choice enabled a
whole range of real estate options to be used or considered in an attempt to gain competitive
advantage. At the same time, organisations started to focus on human capital and search for
new ways to recruit, motivate and retain key staff. The CRE role evolved from a reactive and
mechanical process to one of providing working environments in a way that stimulates the
organisation to achieve success.

Figure 4 sets out the diversity of responsibilities that a CRE manager must oversee. The
increase in sophistication and management input is driven by many concurrent trends. The
most noticeable is the impact of technology and the way in which business is being transacted.

The issues, challenges, and goals of CRE are similar to that of human resources and IT. What
is different is the long-term nature of real estate assets. This requires an even greater emphasis
on business and general trends in so far as they could affect the location, size and nature of the
physical working environment.

34
Figure 4:CRE responsibilities

Historically, CRE managers did not realise how critical the organisational and corporate
aspects were and, accordingly focused on property issues, losing sight of the big picture.
Similarly, a history of poor performance focus and reporting of property matters meant that
many organisations had little visibility on the costs and risks involved in real estate.

The IDRC (now CoreNet Global) developed a model of CRE competency as a step diagram to
guide the growing competency of CRE managers (see Figure 5).

Figure 5: Competency model

CRE is both a property function as well as a management function as shown in Figure 3.

35
Figure 6: Functional role of CRE

The CRE functions satisfy the organisation's need for a working environment. This requires
a range of abilities and skills. Changing technology and increased focus on people has
required CRE managers to develop new approaches and competencies. These can be viewed
as critical to the new role of CRE managers as the link between the organisation and the
property industry.

(Gillies & Dow, 2002) developed the four cornerstones (see Figure 7) as a comprehensive
framework for CRE performance. All of the cornerstones must be in place in order to
effectively manage corporate real estate. Policy is the "glue" which binds the management
cornerstones together. The principles are applicable to any management function. From their
experience the majority of management problems within CRE arise from poor definition in the
roles and accountabilities area.

Figure 7: The "Dow Cornerstones"

2.2.1 Why is CRE significant?

The CRE management function is synonymous with the provision and management of the CRE
assets. The function shares the role with similar property roles or professions such as facility

36
managers, strategic asset managers and property managers. CRE is, by definition, a high level
view of the corporate need and the provision of real estate to meet that need.

An organisation's property assets typically commise a third or more of the total assets of the
organisation. Real estate costs are generally the second or third highest cost to the organisation
behind HR costs and are often at a similar level to IT costs.

The CRE strategy can be a litmus test of the organisation's overall strategy, long-term financial
strategy., HR strategy and IT strategy. The absence of timely and practical strategies in these
areas is why many organisations make poor property decisions.

CRE is also significant to the commercial property industry. Skilled CRE managers can provide
developers with specific details on the performance requirements to specify clearly the most
useful building. This marketing role is important to develop an industry with more focus on the
end user of the real estate in place of the historic emphasis on the investment purchaser.

2.2.2 The importance of working environments

The workplace is a pivotal part of any business. It provides a physical platform for people,
technology and process. The nature and "feel" of the workplace helps shape attitudes, culture,
brand and self-image. The greatest impact of premises is on the way that people communicate,
collaborate and create. Procuring environments that enhance productivity, retention and
recruitment is an increasing element of the CRE function. Active management of real estate
assets is important, as adjustments will always be required to keep the working environment
optimal.

The way we all approach work is changing and accordingly, we need to adapt the working
environments we provide in order to suit the new styles of work. Technology has now
developed to a point where the location of work can be completely flexible. Despite the
technological advances, the office is still the focal point of activity. We conclude that this is
driven by the social nature of work. New technology is manifesting itself in subtle changes in
the nature of work and the type of worker now occupying a workstation. The knowledge worker
is replacing the clerical support staff.

The workplace is more important than ever. A recent study in the UK (Dixon, 2001) identified
that, of job seekers actively looking for work, 90% would not confirm an appointment until
they had seen the working environment.

37
The human resources and IT areas have been subject to close scrutiny in the past. The strategic
HRM movement started in the 1980s and the ongoing improvement and penetration of IT
systems and tools are impossible to ignore. However, CRE is an area that has yet to be subjected
to close scrutiny.

It was found that organisations are increasingly focusing on the working environment as a
differentiating factor. For example, the critical key success factor for major legal practices is
to attract the best talent from universities. One of the most direct ways to improve the appeal
is to create an impressive working environment. The working environment can be configured
to encourage teamwork, communication within the organisation and creativity. There appears
to be agreement from designers, architects and managers that the working environment has an
impact on these factors.

The conclusion is not so clear for productivity. Many attempts have been made to prove that
premises have a significant impact on productivity. The way in which a working environment
impacts on an individual's productivity is difficult to quantify and as a result, there is little
conclusive evidence.

2.3 Challenges for CRE managers

The pressures on CRE managers come from three areas:

The Organisation
Within any organisation, there is always a conflict between the agendas and specific
objectives of the various functions in the organisation. Quality, time and money are often
traded. Often the CRE manager has to resolve these conflicts and encourage individuals to
recognise the implications of CRE decision making/ planning in a broader context.

The typical corporate challenges include:

Increasing rate of change

Increasing expectations of shareholders and stakeholders

Increasing focus on performance/ measurement/ quality

Increasing outsourcing of CRE increasing the need for better definition and
clarity on future plans for real estate requirements

38
 Increasing requirements for probity, clarity, transparency/ visibility of property
transactions from managers and regulators.

A typical trade-off diagram for a property project is:

Cost

Time Quality

Quality covers many aspects such as future flexibility, image congruency, location and building
style/ features.
The CRE Function

The CRE manager is focused on timely and cost-efficient delivery of effective working/
operating environments. To achieve this requires competent and efficient application of general
business skills such as HR management, motivation, and presentation. The effectiveness of the
CRE manager will increasingly be subjected to more rigorous performance measurement and
reporting, often without any recognition of the complexity of many real estate issues.

The Property Industry

Property markets tend to be dominated by investment-based thinking. The CRE manager is at

the end of the property investment process. The organisation wants to maximise the business
benefit from occupying space while minimising cost and risk. These goals are generally in total
conflict with the property owner's objectives.

The CRE manager is constantly pushing against the flow of the property market. The property
related professions often do not communicate using the same language and terminology as the
occupier of the space. Therefore, the CRE manager must constantly act as an interpreter
between these groups. Even terms as fundamental as floor area are interpreted differently by
different parts of the property industry.

2.3.1 Understanding the corporate strategy

One of the major concerns that (Gillies & Dow, 2002) observe is the listening ability of those
involved with the CRE function. Organisations must reshape themselves increasingly rapidly
in response to economic conditions and market trends. This contrasts with real estate assets
that are generally less agile.
39
To set objectives, CRE managers must have access to the latest and most up-to date information
on the strategies and objectives for the organisation. Often this information is not readily
available, as the very latest ideas and possibilities do not find their way into formal
documentation for some time.

Corporate goals can conflict with the CRE manager's objectives. One large telecommunications
company we are familiar with recently sold their entire property portfolio and leased it back.
Rather than this being a strategy to improve the portfolio or change working environments, it
was simply to raise cash for a debt-laden corporate.

The most successful CRE managers understand exactly where the organisation is going, when,
why and how. With full information on objectives, strategies and timing, the CRE manager can
then plan and manage the real estate portfolio to best support the organisation.

Many CRE clients are public sector organisations. The drivers of their business are quite
considerably influenced by the politics of the day. Accordingly, many of these organisations
are unable to plan with certainty on a long-term basis. This presents special challenges for a
CRE manager, as no one in the organisation will confirm or project staff numbers even one
year ahead.

The need for flexibility in terms of planning processes, layouts and the way that deals are
constructed is now as fundamental as reaching agreement on size, quality, rental, and terms
and conditions of transactions.

2.3.2 Getting the organisation to listen

Real estate is often ignored at board level. A recent research project in the UK (Bottle, 2002)
found that 25% of UK blue chip companies had not discussed property at board level for 3
years.

A real estate strategy and sound information on real estate considerations should form a base
for decisions to be made on real estate. However, communication from the CRE professionals
to senior management is not often abundant. A recent survey (Johnson Controls, 2002) asked
respondents to agree that "Real estate information is regularly reported to corporate
executives". The response was 3.2 on a scale from I — strongly disagree, through 3 — not
sure, to 5 — strongly agree. The implication is that information is passed to corporate
executives less than half the time. Clearly, this is an area where the corporate real estate
industry needs to improve.

40
If the real estate strategy is not communicated to senior management, the organisation's options
can be restricted. One example is a large organisation we are familiar with which allowed too
little time prior to a lease end date before making a decision on whether or not to stay. The
CRE manager tried to tell senior management that a decision was required, but the message
did not get through. In the end, the organisation renewed its lease at close to the market rental.
However, the important aspect that had been missed is that the organisation had to forego an
opportunity to change. The CRE manager lost the opportunity to make a positive difference to
the organisation. Despite the difficulty of getting senior management to listen, it is our view
that the CRE manager is responsible for developing and implementing a strategy to ensure that
they are heard.

In another example, the CRE manager for an educational institution found that the management
board was constantly making decisions that impacted on real estate without any reference to
him. The consequence of these decisions, in the absence of full knowledge, was that additional
costs were incurred. Further, the ability to develop and implement a cohesive property strategy
was thwarted. In order to be heard, the CRE manager had to threaten to leave unless he obtained
access to the management board to advise on real estate issues. When access was obtained, the
CRE manager did make a clear difference to the organisation, providing timely advice on real
estate impacts. We are not suggesting that every CRE manager needs to threaten to resign, but
it is an indication of the level of assertiveness that may be required to change the behaviour of
senior management.

Performance management, regular reporting, developing a track record and building trust are
the ingredients required to communicate with senior management.

2.3.3 Organisation fit

There are two related issues. The first is the seniority and reporting level of the CRE
manager. The second is the structure of the organisation and the CRE function; e.g.
centralised, decentralised or functional arrangement.

Reporting level
The right reporting level reflects two things:

I. The critical nature/ importance to the organisation of property

2. The ability of the CRE manager to participate at senior level.

Examples of organisations with different levels of critical impact of property include:

41
 Correctional institutions — real estate is fundamental to achieving outputs
Healthcare — real estate influences most aspects of organisational activity
Software development — real estate requirements are non critical.

Many organisations have a low opinion of the importance of property. Real estate
managers rarely have a seat on the board or membership of the senior management
team.

Typically, the CRE manager reports to the CFO, Corporate Services Manager or
occasionally the HR Manager. The most senior property specialist in most
organisations is generally the person responsible for management of day-to-day real
estate matters. This may mean that strategic development and contribution to the
organisation in terms of workstyle trends and broader initiatives is neither expected
nor encouraged.

The CRE function can fit into an organisation in many ways. The most impact and
influence is gained when the real estate manager is part of the senior management
team. However, the CRE manager must have the understanding, experience and
knowledge to contribute to the management of the organisation.

Configuration
The configuration of the CRE function is a similar issue. The decentralised structure
is disappearing in favour of central corporate real estate teams. Technology, the
growth in competence of national service providers and the adoption of company-wide
policies and standards are making a compelling case for centralising and making best
use of the limited availability of experience and expertise in the corporate real estate
function.

In decentralised structures, it is difficult to get the region or subsidiary to appreciate

the importance of adopting mature corporate real estate strategies. There are
significant risks involved when inexperienced people deal with real estate. Problems
arise when real estate is managed and treated in different ways across a state or
country. There is not only an increased risk of technical incompetence, but also a high
probability of ad hoc reactive solutions driven by local managers reinventing the
wheel.

42
Whilst there is no right answer and every organisation has a slightly different structure,
it appears that a centralised CRE management structure is preferred.

The challenge for most CRE managers is to:

Centralise to build critical mass and expertise

• Report to the highest possible level in the organisation.

2.3.4 Developing diverse skills

Some years ago, (Gillies & Dow, 2002) worked with a number of property managers, who
were relatively new to the role. They produced the diagram below (see Figure 8) to give them
and their superiors an appreciation of the complexity of their role.

Figure 8: The complexity of property management

In many cases, no more than a familiarity is required but, at the very least, the CRE manager
must be aware of any potential pitfalls or dangers in every field. In addition to having a level
43
of competence with the full range, the CRE manager must be aware of macro trends and likely
changes. The most practical solution to this need for such diverse knowledge is to create
standards and templates. Each area can be considered in detail, with the result that there is no
need to reconsider the details every time. It is possible to outsource the creation of the templates
and guidelines to experts.

We were recently engaged to advise on property issues by a national operation with leased
offices around the country. The previous structure was decentralised with varying standards
and availability of funding. In addition to simply providing the resources to obtain new
property, manage projects and renegotiate existing leases, we are focused on creating standards
and guidelines.

Equipped with templates and guidelines, each additional project runs more smoothly due to the
better flow of information. The challenge that many CRE managers have is

that of finding time to develop forward thinking processes and standards, as well as coping
with the day-to-day demands of the role.

2.3.5 Presentation/ reporting skills

In 2001, (Gillies & Dow, 2002) ran a series of forums for CRE managers, focussed on achieving
better performance out of the real estate assets. The most common complaint of the CRE
attendees was that "senior management don't care about real estate".

At one of the forums, an attendee asserted that if senior management do not care, it is the result
of poor communication or reporting by the CRE manager. If the CRE manager cannot sell their
message to senior management, the method of communication must be improved. We agree
with this view. It is the CRE manager's responsibility to sell the value created by sound
management of the real estate resource.

CRE managers are often weak at reporting or selling their "value-add", as the mindset of typical
CRE managers is focused on getting the job done. The typical CRE manager is more familiar
with managing at a process and implementation level. This property management approach
encourages:

High motivation to get "things right"

An eye for detail

Risk aversion

44
 Technical skills.

Often this skill set comes with:

Low presentation skills

Limited confidence to present well

Limited "big picture" appreciation

Reactive vs. proactive approach

Meeting regulations vs. driving the organisation forward.

In organisations with stable workforces and few strategic changes, the CRE manager may have
nothing of interest to report to senior management. If this is the case, a financial statement and
occasional or exception reporting would be in order.

The challenge is to present the correct level of detail to the operational managers that are most
affected by the real estate provision. This area has historically been neglected. There is often
such a serious communication gap that the vast majority of managers have no recognition of
CRE

2.3.6 Building a robust planning process

In order to focus on key success factors, the CRE manager must develop clear, practical plans.
These will achieve the delivery of corporate objectives from the real estate assets. The
immediate task that CRE manager's face is defining and agreeing:

What is a property plan?

What is a strategic property plan?

What is a CRE strategy?

The plan must encompass a blueprint for the real estate assets, as well as a plan for the
management of the CRE function. We have formed the view that it is best to be quite clear
about the differences between the two. The asset management plan or strategic property plan
should focus completely on the property assets and the way in which the property assets help
achieve corporate objectives.

In contrast, a CRE management strategy should be a business plan for the function. This will
include elements such as the roles, responsibilities and accountabilities of the various players
for workplace/ real estate strategy, property, policies, planning protocols, performance
45
management, reporting guidelines and service level agreements between the CRE function and
other parts of the organisation.

Without going into detail on the requirements of a property plan, the key elements that need to
be addressed are as follows:

1. Understanding the overriding corporate strategy or corporate plan.

2. The linkages between the property characteristics and the corporate outputs.
Considerable thought must be applied to determine exactly how the real estate assets
enable or inhibit the organisation achieving its objectives. This requires thinking
iaterally and practically about a particular asset type that is used to service a particular
need. An example could be a public swimming pool where the ideal characteristics for
a pool need to be determined to ensure that the pool is built in the way that best meets
the operator's objectives. This may involve a complete rethink of the reasons why the
asset exists at all. Does a swimming pool exist to train athletes, does it exist to entertain
children, or does it exist as a social focal point for a community. These questions need
to be answered impartially in order to build the ideal profile for the asset to be provided.

3. Commitment and involvement from the business units. They understand their
business drivers better than an external adviser.

4. Developing a demand profile for real estate that is independent of the actual
location and size of assets. It is always tempting to use the existing ponfolio as a base
rather than starting from first principles to assess demand.

If the planning process is rigorous and it involves the users thinking through the reasons why
they use the asset and the benefits that the asset provides to help meet corporate needs, this
process will potentially result in a much clearer understanding of the location, size, quality and
timing of the requirement. The CRE manager needs to be assertive, but sensitive in working
with the business units to ensure that they feel a part of the process. If the process is foisted
upon them, they will invariably fight a rear guard action later, sometimes inespective of the
cost implications.

The plan must be created in partnership with the business units. By encouraging the business.
unit managers to reflect on why they occupy space and what it provides for them, including
considering non-property solutions, the CRE manager can add significant value to the
organisation.

46
 2.3.7 Constructing clear roles and responsibilities
It is self evident that the roles, responsibilities and accountabilities for the CRE function should
be focused on the needs of the organisation. The general intent is not normally a problem. A
mission and vision for the CRE function should be developed to provide a parallel perspective
to the organisation's mission and vision.

In management reviews, we look for three aspects in connection with roles and responsibilities.
These are:

l . The clarity of both the written and generally understood roles and responsibilities within the
organisation for the range of corporate real estate tasks. If a number of people/ business units
are undertaking the same or similar function, it is invariably a sign of confused thinking in
terms of role definition.

2. The most important role or responsibility in connection with providing real estate assets
is that of monitoring performance and in particular, ensuring "value for money" from the
whole-of-organisation perspective rather than the property/real estate perspective.

3. To focus on the above, we spend time tracking down the conceptual "owner" of the real
estate within an organisation. The "owner" is the one who pays for the real estate. Ideally,
the "owner" should also be the user or beneficiary of the real estate. In CIRE, the user pays
principle works well and encourages sensible decision-making.

As mentioned earlier, the key to success is to set objectives and achieve them efficiently. The
challenge is to create a coherent set of responsibilities that fit clearly with the organisations
goals. Clarity on roles and responsibilities is essential if performance is to be managed with
certainty.

2.3.8 Developing a robust performance management system

Frederick Taylor said, "If you cannot measure it, you cannot improve it".

This fits well with our approach to performance management, as we feel that a strong
performance management structure will focus on finding ways and means to improve
performance and improve achievement of the organisation's goals.

Performance management systems can be internally inconsistent. For example, the individual
or team is charged with meeting performance targets, but they have incomplete control over
the resources to achieve those targets. This inconsistency can lead to serious problems in terms
of motivation or stress on a CRE manager. To ensure that this consistency is achieved, we

47
include authority as a resource in the Cornerstone Model and have managers check that they
have sufficient authority to achieve their performance targets.

Review of the performance management system often uncovers poorly defined roles or
responsibilities and weak planning and project evaluation processes. Because the data exists,
many performance management regimes focus on the input of the real estate resource such as
total costs, rental levels, and space per employee. A major shift is required to focus on the
outputs.

The chief executive is likely to be more focussed on how the CRE function is helping to achieve
the corporate objectives. Is the accommodation:

Supporting image and branding?

Functional?

Enabling creativity?

Encouraging better work practices?

Flexible?

A low risk element?

The optimum performance management system will review and encourage better results for
the organisation. If presented well, this output-focused reporting will be a key communication
tool. The challenge is for the CRE manager to develop the measures and demonstrate
performance.

CHALLENGE 9 - DEALING WITH A DISPARATE PROPERTY INDUSTRY

There is no dispute that the skills, knowledge and motivations of different professionals
operating in the property industry vary considerably. The differences tend to arise from the
skills required for success in each particular field. The impact of the need for specialist skills
is an increase in the number of advisers and contractors involved in any property project. For
example, a relocation project could require a tenant to employ a number of advisers, many of
which will be involved only briefly. The CRE manager must build effective teams from this
group and achieve continuity throughout the project.

The CRE manager must see the whole process through from conception to completion. Project
management skills are imperative but are often only learned on the job. The challenge is for

48
CRE managers to build project management skills and capabilities. These are, and will be, a
critical success factor.

2.3.8 Challenges for academic research in cre

Academic research can assist the CRE management function by refining and developing
specialist areas. However, we feel that focus on the development of a number of models or
profiles will yield the maximum impact. These models are:

l. A profile of a typical CRE manager, their background and current skill base.

2. A clear view of best practice CRE management. We have constructed a detailed description
of best practice and are happy to share this with anyone who would like to take the task further.

3. A summary profile of the key success factors for CRE managers. Some of the key success
factors could be as follows:

big picture thinking

strategic understanding
assertiveness
negotiation skills
motivation
doing the right thing not just doing things right
salesmanship
education and communication.

If items I and 3 are reconciled, the gaps between typical skill sets and the ideal skill set could
be identified. If this were made widely available, the academic community would have clarity
on the areas with the highest demand for training and research.

Most CRE managers come to the function later in their career. The result is a diversity of
backgrounds. Part time or distance learning is likely to be more effective than attempting to
add CRE to already full undergraduate real estate courses.

CONCLUSION

CRE is here to stay as a profession. Standards and expectations of CRE managers will continue
to grow. If CRE managers have the skills required, the CRE role will be recognised and the
demand for CRE managers will increase.

49
Organisations are becoming more focused on the benefits of working environments.
Individuals are also becoming more aware of their working environments and the ability that
they now have to manipulate how and where they work. At the same time, development of
teclmology is enabling completely different ways of working. CRE managers must keep up
with these trends and strengthen their knowledge of the links between the characteristics of
working environment and output.

We expect that knowledge of the property industry will become an entry qualification for CRE
managers. The keys to outstanding success and the characteristics of exceptional CRE
managers relate to a range of additional management skills. We have examined many of these
in detail in this paper.

The most useful ability that CRE managers could develop is an appetite for learning and
continued improvement. There may be benefits in developing specific courses for CRE
managers. This will involve teaching across the range of related disciplines such as CRE,
facilities management, strategic asset management, property management and interior design
to find common ground.

We hope that this article has given an insight into the way in which the CRE profession is
developing and the challenges facing the typical CRE manager.

2.4.3 Organisational FACTORS

2.4.3.1 Providers do not provide what CRE managers need

2.4.3.2 Poor structure of the organisation and CRE functions

According to (Gillies & Dow, 2002) a decentralised structure is disappearing in favour of
central corporate real estate teams. Technology, the growth in competence of national service
providers and adoption of company-wide policies and standards are making a compelling case
for centralising and making best use of the limited availability of experience and expertise in
the corporate real estate function. In decentralised structures, it is difficult to get the region or
subsidiary to appreciate the importance of adopting mature corporate real estate strategies.
There are significant risks involved when inexperienced people deal with real estate. Problems
arise when real estate is managed and treated in different ways across countries. There is not
only an increased risk of technical incompetence, but also high probability of ad hoc reactive
solutions driven by local managers reinventing the wheel.
50
2.4.3.3 Inconsistent management system

2.4.3.4 Inadequate resources

(Corkindale, 2011) Poor organizational design and structure results in a bewildering morass of
contradictions: confusion within roles, a lack of co-ordination among functions, failure to share
ideas, and slow decision-making bring managers unnecessary complexity, stress, and conflict

2.4.3.5 Unclear roles and responsibilities of CRE function

According to (Gillies & Dow, 2002) the key is to create a coherent set of responsibilities that
fit clearly with the organizations goals. Clarity on roles and responsibilities is essential if
performance is to be managed with certainty.
Managers must allow their employees to work on peer reviews to prepare for annual
appraisals. Basically, an entire department—or even the whole organization—is forced to go
into shut-down mode and to put priority work on the backburner until yearly reviews are
completed (Aguinis, 2019)

2.4.4 Human factors

2.4.4.1 Poor communication
Communication from the CRE professionals to senior management is not often abundant. A
survey by (Gillies & Dow, 2002)asked respondents to agree that “Real estate information is
regularly reported to corporate executives”. The response was 3.2 on a scale from 1- strongly
disagree, through 3- not sure, to 5- strongly agree. The implication is that information is passed
to corporate executives less than half the time. Clearly this is an area where the corporate real
estate industry needs to improve. If the real estate is not communicated to senior management,
the organisations options can be restricted.

2.4.4.2 Lack of planning

(Mourot, 2019)Lack of planning is certain to result in shortages or delays of necessary
materials. Without an analysis of how often resources need to be replenished, these
necessities will not be found where and when needed.

2.4.4.3 Lack of skill diversity

51
According to (Gillies & Dow, 2002)the challenge that many CRE managers have that of finding
time to develop forward thinking processes and standards, as well as coping with the day to
day demands of the role.

2.4.4.4 Poor project management skills

As per (Gillies & Dow, 2002) there is no dispute that the skills, knowledge and motivations of
different professionals operating in the property industry vary considerably. The differences
tend to arise from the skills required for success in each particular field. The impact of the need
for specialist skills is an increase in the number of advisers and contractors involved in any
property project. For example, a relocation project could require a tenant to employ a number
of advisers, many of which will be involved only briefly. The CRE manager, must build
effective teams from this group and achieve continuity throughout the project. The CRE
manager must see the whole process through from conception to completion. Project
management skills are imperative but are often learned on the job. The challenge is for CRE
managers to build project management skills and capabilities. These are, and will be, a critical
success factor.

2.4.4.5 Failure to maintain current knowledge

2.4.4.6 Failure to develop measures and demonstrate performance

Federick Taylor said, “ if you cannot measure it, you cannot improve it”. Performance
management systems can be internally inconsistent. For example, the individual or team
charged with meeting performance targets, but they have incomplete control over the resources
to achieve those targets. This inconsistency can lead to serious problems in terms of motivation
or stress on a CRE manager. Review of performance management system often uncovers
poorly defined roles or responsibilities and weak planning and project evaluation processes.
Because the data exists, many performance management regimes focus on the input of real
estate resource such as total costs, rental levels, and space per employee. A major shift is
required to focus on the outputs.

The chief executive is likely to be more focused on how the CRE function is helping achieve
the corporate objectives. The optimum performance management system will review and
encourage better results for the organisation. If presented well, this output-focused reporting
will be a key communication tool. The challenge is for CRE manager to develop the measures
and demonstrate performance.

52
2.5 Chapter summary

The literature revie has discussed about the concept of corporate real estate management. It
went on to point out the importance of CREM. Furthermore, the literature gave an insight about
challenges faced by CRE managers.

53
CHAPTER 3: RESEARCH METHODOLOGY AND DESIGN

3.1 Introduction

This chapter reveals research methodologies and research methods that are commonly used by
researchers in the field of information systems. Research methodology and research method
used in this proposal are acknowledged and discussed. The chapter starts off by giving a brief
introduction to research then methodologies and research methods that are particularly used in
the proposal.

According to (Flick2015) research is inquiry that entails collection of data documentation of

critical information and analysis and interpretation of that data, in accordance with suitable
methodologies set by specific professional fields and academic disciplines. In addition, a
research is conducted to evaluate the validity of a hypothesis or proposing and also interpretive
framework. This is done assemble a body of substantive knowledge and findings for sharing
them in appropriate manners and generate questions for further inquiries.

According to (IGWENAGU 2016) a explains that methodology as a systematic, theoretical

analysis of methods applied to a field of study or research. It aims to combine the relevance of
thr research purpose with the procedures that will be followed. In addition, methodology has
to do with paradigm, theoretical models, phases and quantitative or qualitative techniques, it
does not wholly set out to provide solutions but rather offers that theoretical underpinning for
understanding a set of methods and best practices that can be applied on a specific case or area,
methodology therefore, has to do with the overall approach to a particular area to systematically
solve a research problem as it deals with the processes that researchers adopt in the research
design, reasons behind choosing the kind of research design and why other methods were
ignored and rejected (Swinton and Mowat 2016)

The purpose of this study as earlier stated was to critically assesses the effects of poor
management of corporate real estate on corporate success in Gaborone, Botswana. This chapter
therefore, generally discussed the suitable sources of data used and the methodology that was
applied in the research. There will be a description of the design of the study, data collection
instruments used, validation and reliability of the instrument, population and sample of the
study and questionnaire administration. Furthermore, there is a discussion on the techniques
that will be used for data analysis.

54
 3.2 A case study area

According to (Majid2018) population is the complete set of individuals or subjects that have
common features which the researcher is interested on. Therefore, the case study area that was
chosen for the study was Gaborone that is a capital city of Botswana. According to World
Population Review 2021 Gaborone currently stands at a population of about 208,411
individuals of which contains a significantly higher population comes as a result of a few pull
and push factors that influence the great migration and specifically the rural urban migration,
that is, the relocation of movement of people from rural areas to urban areas. Such pull factors
are a result of the urge that migrants have to look for better opportunities (either academic and
job wise), better health facilities, better services and green pastures. Famine, drought, poor
economic activities and unavailabitity of services are however, regarded as push factors that
may push migrants into cities. As a result, Gaborone was chosen as the area for the study
because of a large number of property

3.3 Research design

According to Creswell (2014), research design is a broad framework that includes translation
of the research question into research variables, choosing an appropriate sampling and data
collection method, choosing appropriate analysis method and deciding on the time frame and
budget. For this study, a deductive reasoning as chosen, this entails that the author developed
hypotheses based on existing theory. Questionnaires were prepared with what was deemed
from the literature. Information received from the respondents was compiled and compared
with existing knowledge in order to come to a conclusion. This suits the study’s goal to assess
the factors causing a decline 12 in market share and revenue in local real estate firms in
Gaborone. As literature and questionnaires were used to answer the research questions, the
approach can most accurately be described as deductive (Brayman, 2012). Given the open
ended nature of the questionnaires, literature was needed because new information was
collected from the questionnaires. This indicated a deductive approach.

3.3.1 Research approaches

There are usually three main research approaches that can be adopted in a study. They
include; quantitative, qualitative and a mixed method approach. To achieve the objectives of
this study, a quantitative approach will be adopted to test hypotheses about specific

55
phenomena. This research method enables researcher to analyze the relationship between the
independent and dependent variables identified in the research.

3.3.2 Measurement instrument

These are tools used by researchers and practitioners to aid in the assessment or evaluation of
subjects, clients or patients. The instruments are used to measure or collect data on a variety of
variables ranging from physical functioning to psychosocial wellbeing. Types of measurement
tools include scales, indexes, surveys, interviews, and informal observations and questionnaires
(Creswell, 2014). Choosing a measuring instrument depends on the type of study that the
researcher is carrying out (Creswell, 2014). For the purposes of this study, a questionnaire was
selected as the measuring instrument.
Table 2: Formation of variables

TYPES OF RESEARCH DEDUCTIVE STUDY

OBJECTIVES VARIABLES MEASUREME

NT
1. To identify the 1. Investigative question: What are the Linkert scale
challenges faced by corporate real estate
challenges faced by managers in Gaborone, Botswana? • Strongly
corporate real estate
agree(1)
mangers in Gaborone,
Botswana. • Disagree
(2)
• Neutral
(3)
• Agree(4)
• Strongly
agree (5)

CORPORATE FACTORS

56
 • Underestimation of CRE value
by executives
• Ignorance of real estate at
borad level
• Limited accessibility to latest
organisation objectives
• Conflicting corporate goals
with CRE managers objectives
• inability to report to the highest
possible level in the
organisation

HUMAN FACTORS
• Poor communication
• Lack of planning
• Lack of skill diversity
• Poor management skills
• Failure to maintain current
knowledge
• Failure to develop measures
and demostrate performance
• Poor problem solving skills
• Poor time management

ORGANISATIONAL FACTORS
Providers do not provide what CRE
managers need
Poor structure of the organization and
CRE functions
Inconsistent management system
Inadequate resources
Unclear roles and responsibilities of
CRE function

57
 FINANCIAL FACTORS
Insufficient funds
Management costs

2 To assess the factors 4. How do these challenges affect Linkert scale

affecting corporate real
estate managers in their productivity? • Very
Gaborone, Botswana. low(1)
• Low(2)
• Average(
3)
• High (4)
• Very
high(5)

3 To come up with 1. What are the solutions that can Linkert scale:
solutions that will help
solve challenges faced by help encounter challenges Very low (1)
corporate real estate
faced by corporate real estate Low (2)
managers in Gaborone,
Botswana. managers in Gaborone, Average (3)
Botswana? High (4)
Very high(5)

58
 1.3.2.1 Interview

According to (Easwaramoorthy & Zarinpoush, 2006), An interview is a conversation for

gathering information. A research interview involves an interviewer, who coordinates the
process of the conversation and asks questions, and an interviewee, who responds to those
questions. Interviews can be conducted face-to-face or over the telephone. The internet is also
emerging as a tool for interviewing. Semi-structured interviews: In a semi-structured interview,
the interviewer uses a set of predetermined questions, and the respondents answer in their own
words. Some interviewers use a topic guide that serves as a checklist to ensure that all
respondents provide information on the same topics. The interviewer can probe areas based on
the respondent’s answers or ask supplementary questions for clarification. Semi-structured
interviews are useful when there is a need to collect in-depth information in a systematic
manner from a number of respondents or interviewees.

1.3.2.2 Administration of interviews

Interviews were done to corporate rea estate managers in Gaborone. The questions asked were
regarding the challenges that they face in Gaborone. A maximum of 15min was spent on
interviews.

1.3.2.3 Reliability and validity

According to Kirk and Miller(2008) reliability refers to the consistency of a measure.

Reliability and validity are concepts used to evaluate the quality of research. They indicate how
well a method, technique or test measures something. Reliability is about the consistency of a
measure, and validity is about the accuracy of a measure. It’s important to consider reliability
and validity when you are creating your research design, planning your methods, and writing
up your results, especially in quantitative research. (Middleton, 2021).

1.3.2.4 Levels of scales of measurement

There were various levels of measurement that were used in the study, namely, nominal, ordinal
and interval. Nominal was used when collecting information about general characteristics of
corporate real estate organizations. These include information about where they were located

59
i.e. in the urban areas. An interval scale was used in the background section of the
questionnaire, to collect information such as age of the organizations.

1.4 Data collection methods

There are two data collection methods that have been used in the research proposal, namely;
primary data and secondary data. Data collection is the process of gathering and measuring
information on variables of interest, in an established systematic fashion that enables one to
answer stated research questions, test hypotheses, and evaluate outcomes. The data collection
component of research is common to all fields of study including physical and social sciences,
humanities, business, etc. While methods vary by discipline, the emphasis on ensuring accurate
and honest collection remains the same. (Responsible Conduct in Data Management, 2021)

Primary data

Primary data collection is the process of gathering data through surveys, interviews, or
experiments. A typical example of primary data is household surveys. In this form of data
collection, researchers can personally ensure that primary data meets the standards of quality,
availability, statistical power and sampling required for a particular research question. With
globally increasing access to specialized survey tools, survey firms, and field manuals, primary
data has become the dominant source for empirical inquiry in development economics (The
World Bank Group, 2021).

Secondary data

Secondary data is an important source of information and can provide valuable knowledge and
insight into a broad range of issues. Collecting information about different community aspects
will help explain factors that influence the community’s health. Types of secondary data can
often be categorized by specific area or population, such as Demographics, Health Behaviors,
Social Determinants of Health, or Environmental Factors (Good and Health, 2021)

1.5 Data collection process

1.6 Sampling design

60
An appropriate sample size was made in order to make inferences about the population based
on that sample. An appropriate sample size is required for validity, and it should be noted that
if the sample size is too small, it would not yield valid results (Henry, 1990). It should also be
highlighted that a sample size that is too large would result in money wastage and time. It is
also imperative to note that there is no certain rule of thumb to determine the sample size
(Henry, 1990). A sample size of 20 was chosen from the population.

3.6.1 Target population

The target population for this study consisted of corporate real estate managers, executives and
employees under the department. A criterion was set using the corporate real estate managers,
executives and employees to take part in the study. Firstly, the corporate real estate managers
should be qualified real estate manager with a certificate or degree as proof. Is is possible
therefore to use sampling techniques to select a smaller group from the population that will
statistically represent the whole population. It is often necessary to use sampling because
researchers usually do not have time, energy, money or resources to study the whole population.
Furthermore, there are two classification of sampling i.e. probability or nonprobability
(Traechoma2006). The criteria of choosing the target population was fully based on registered
corporate real estate managers and qualified mangers. Secondly the CRE managers should have
at least 5year experience on the job. The total CRE managers in Gaborone were (20).

3.6.2 Sampling frame and sampling location

A sampling frame is a list of all the items in your population. It’s a complete list of everyone
or everything you want to study. The difference between a population and a sampling frame is
that the population is general and the frame is specific (Statistics How To, 2021) and Sample
location means the actual place where an environmental sample was obtained.

Gaborone is the chosen sample location. This area is mainly chosen because it will be easy for
the researcher to conduct interviews and hand out questionnaires to CRE managers i.e.
proximity to the target population.

3.6.3 Sampling technique

3.6.4 Sampling size

The sample size is a term used in market research for defining the number of subjects
included in a sample size. By sample size, we understand a group of subjects that are selected

61
from the general population and is considered a representative of the real population for that
specific study (Omniconvert., 2021).

The formula for determining the sample is as follows:

N= sample size/population size ( it is calculated at 90% interval i.e. 5% confidence interval)

E= standard error 95% confidence level interval

n= where

n is sample size

N is the population

E is the margin of significance

The sample size for the study at 90% confidence level;

n=

𝒏 = 𝟏𝟎𝟏 𝒓𝒆𝒔𝒑𝒐𝒏𝒅𝒆𝒏𝒕𝒔

1.7 Treatment of bias

Eliminating the biasness in this proposal, no alterations are going to be performed in the
collected questionnaires and interviews. The data will be entered and analysed the way it
appears. When selecting the respondents is study sample, biasness is to be ignored.

3.7 Data processing

Data processing involves steps that changes disorganized and meaningless data into organized
and meaningful information Khan (2011). The steps that are involved in data processing
include data capturing, which involves capturing and measuring intended data in standardized
manner. The collected data would be tested through hypothesis and validations. Data would
then be coded through running statistical tests. The next step would be the data processing,

62
where the data is cleaned up and formal checks are done to remove errors and mistakes that
may occur.

1.8 Data analysis

Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data. According to Shamoo and
Resnik (2003) various analytic procedures “provide a way of drawing inductive inferences
from data and distinguishing the signal (the phenomenon of interest) from the noise (statistical
fluctuations) present in the data”.

For the purpose of his study, Microsoft excels and Statistical package for social science will be
used to analyse data. SPSS helps in explaining the relationship between variables and helps in
understanding the causes and impacts of a particular phenomenon.

3.10 Limitations of the research design

The main limitation of this study is the corvid 19 pandemic. The pandemic is the main
limitation in the sense that collection of data from the different managers in various firms was
difficult as most people avoid meeting up and being interviewed.

3.11 Confidentiality and ethical considerations

Ethics consideration takes into account issues of harm, privacy and confidentiality (Khan,
2011). Effort has been made to maintain ethical considerations and ensure confidentiality. In
the questionnaire to be administered to the respondents, option to withdraw from the study
upon any point in time will be provided without any charge for doing so. All the respondents
will have access to the researcher’s contact details for any clarity and uncertainty during
answering of the questionnaire. All participants in the research are people over the age of 18
years, hence there is 18 no need for parental consent. All the data collected is kept confidential
and access to any information controlled strictly. Lastly, anonymity of all the participants was
ensured and all responses were treated with outmost confidence.

3.12 Chapter summary

This chapter was mainly focused on identifying the research methods and methodologies that
were used and would be used in this study. The sample size was also determined for the study.

63
The chapter winds up with stating the main limitations of the design as well as the confidential
and ethical considerations that the researcher ensured in this study.

64
 CHAPTER 4: DATA PRESENTATION AND ANALYSIS
4.1 Introduction
This chapter is concerned with the presentation and analysis of results on factors influencing
inadequate material provision and management to projects sites in Gaborone. The findings are
primarily based on the data collected from CRE managers and employees working under the
CRE department. The chapter firstly, presents the data in its raw format as received from the
respondents i.e. response rate, background information and response on questions. After
presentation of results, the data is analysed and contrasted with the objectives and hypothesis
stated in the previous chapters and evolution of hypothesis and discussion of findings follows.
Analysis of data is done, to gain an understanding about the reason for an occurrence of
problem or phenomena.

4.2 Response rate

A total of 187 questionnaires were distributed to CRE managers and employees working under
the CRE department in Gaborone. 150 were returned and only 120 of questionnaires were
correctly and fully filled. This is because some of the respondents were too busy to fill the
questionnaires and some were unavailable when the questionnaires were to be returned. 64%
response rate was achieved. The high response rate was a result of giving the respondents a
longer duration with the questionnaires and also prompting them to answer.

4.3 Profile of the respondents

Background information of the respondents which consists of general information such as
whether the respondents experience in the project’s profession. The background of the
respondents is illustrated in the table below.

65
 Background information Caegory Frequency %
Type of organisaion Government 15 13%
Private company 105 88%
Total 120 100%
No of employees Less than 10 0 0%
11 to 50 120 1%
51 to 100 0 0%
101 to 500 0 0%
501 t0 1000 0 0%
more than 1000 0 0%
Total 120 1%
Real estate unit Yes 120 1%
No 0 0%
Total 120 1%
Employees in real estae unit 1 0 0%
2 to 5 4 3%
6 to 15 116 97%
16 to 25 0 0%
More than 25 0 0%
Total 120 100%
Member of REAC Yes 120 100%
no 0 0%
Total 120 100%

Table 3: Demographic characteristics of the respondents

4.4 Data presentation, analysis, and discussion

This section of the study mainly focuses on presenting the findings that were collected from
CRE managers and employees working under the CRE department in Gaborone. The
presentation of data addresses each objective that was outlined in the previous chapters of the
study. The findings are presented according to the other in which the questions were set in the
questionnaire.

4.5 Findings addressing objective 1

As a way of addressing the first objective, respondents were asked to give their perception on
factors contributing to the difficulties faced by corporate real estate managers in Gaborone. A
five point Likert scale was used, and respondents had to rank the factors according to the scale.
The factors were ranked on strongly agree (1), disagree(2), neutral(3), agree(4), and strongly
agree(5). After collecting data the mean and average scores of each gactor were determined.

4.5.1 Corporate factors

66
Figure 9: Corporate factors

Analysis
Table 4 below shows the summary of the results on corporate factors identified as contributing
to difficulties faced by corporate real estate managers in Gaborone. The use of percentages as
well as mean scores indicate the level at which each variable significantly contribute to the
difficulties faced by corporate real estate managers. The corporate factors consist of five
variables which includes: underestimation of CRE value by executives, ignorance of real estate
at board level Limited accessibility to latest organisation objectives, conflicting corporate goals
with CRE managers objectives and inability to report to the highest possible level in the
organisation. The overall mean score of the corporate factors is 3.58, this means that the
respondents agree that corporate factors contribute to challenges faced by corporate real estate
managers in Gaborone. Therefore, corporate factors have significance on contributing to the
difficulties faced by corporate real estate managers in Gaborone.

Interpretation
From the results, the influence of corporate factors is found to be statistically significant.
Ignorance of real estate at board level has the highest impact on the challenges faced by
corporate real estate managers in Gaborone. This is possibly due to directors not knowing the
value that real estate their organization owns can help increase its value. The lowest corporate
variable is limited accessibility to latest organization goals. This is possibly because
organisations are more transparent with their employees so as to encourage them to reach goals
set by them hence providing what they need from them.
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Discussion
A study by (Hartmann, Linneman , Pfnür, & Siperstein, 2009) agrees with this result as it
revealed that although corporate real estate remains an important asset on corporate balance
sheets, it is currently "under-managed" in both the United States and Europe, and CREM
departments lack prominence in most companies. As a result, companies are not realizing the
full value of their real estate assets and are turning attention to them only in difficult times
when property valuations are generally depressed. Furthermore, according to (Bootle , 2002)
real estate is often ignored at board level. In the book it was stated that a research made in the
UK found that 25% of UK blue chip companies had not discussed property at board level for
3 years. In 2001 (Gillies & Dow, 2002)ran a series of forums for CRE managers, focussed on
achieving better performance out of the real estate assets. The most common complaint of the
CRE attendees was that “senior management do not care about real estate”

In order to set objectives, CRE managers must have access to the latest and most up-to- date
information on the strategies and objectives for the organization as a whole. Often this
information is not readily available, as the very latest ideas and possibilities do not find their
way into formal documentation for some time. Corporate goals can conflict with the CRE
managers objectives. One large telecommunication company once sold its entire property
portfolio and leased it back. Rather than this being a strategy to improve the portfolio or change
working environments, it was simply to raise cash for a debt-laden corporate. With full
information on objectives, strategies, and timing, the CRE manager can then plan and manage
the real portfolio to best support the organization (Gillies & Dow, 2002).

According (Gillies & Dow, 2002) to real estate strategy is not communicated to senior
management, the organizations options can be restricted. An example is a large organization
which allowed too little time prior to a lease end date before deciding on whether or not to stay.
The CRE manager tried telling senior management that a decision was required, but the
message did not get through. In the end, the organization renewed its lease at close to the market
rental. However, the important aspect that had been missed is that the organization had to
forego an opportunity to change. The CRE manager lost the opportunity to make a positive
difference to the organization. Despite the difficulty of getting senior management to listen, it
is our view that the CRE manager is responsible for developing and implementing a strategy
to ensure that they are heard.

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Table 4: Corporate factors for objective 1

Total Total % Strongly disagree Disagree Neutral Agree Strongly agree Mean scores Remarks
Corporate facors 1 2 3 4 5
Underestimation of CRE value by executives 120 100% 0% 7% 20% 55% 18% 3.84 Agree
Ignorance of real estate at borad level 120 100% 0% 1% 14% 58% 27% 4.11 Strongly agree
Limited accessibility to latest organisation objectives 120 100% 0% 28% 61% 3% 8% 2.91 Neutral
Conflicting corporate goals with CRE managers objectives 120 100% 1% 13% 43% 43% 1% 3.33 Neutral
inability to report to the highest possible level in the organisation 120 100% 0% 3% 33% 49% 14% 3.71 Agree
Overall mean score 3.58 Agree

Source: researchers field data

4.5.1.1 Underestimation of CRE value by executives

The table above shows that 55% of the respondents agree that underestimation of CRE value
by executives contributes to difficulties faced by corporate real estate managers while 28%
were unsure and 7% disagree. No respondents strongly disagreed. A mean score of 3.84 was
recorded which means underestimation of CRE value by executives contributes to difficulties
faced by corporate real estate managers.

4.5.1.2 Ignorance of real estate at board level

From the table above, it shows that 58% of the respondents agree that ignorance of real estate
at board level contributes to difficulties faced by corporate managers real estate while 14%
were neutral and only 1% disagreed. A mean score of 4.11 was recorded which means
ignorance of real estate at board level contributes to difficulties faced by corporate real estate
managers.

4.5.1.3 Limited accessibility to latest organization objectives

The table above shows majority of respondents’ i.e. limited accessibility to latest organization
objectives contributes to challenges faced by corporate real estate managers while 3% of the
respondents agreed. The results show that limited accessibility to latest organization objectives
have an average contribution to difficulties faced by corporate real estate managers. This is
shown by the mean score of 2.91.

4.5.1.4 Conflicting corporate goals with CRE managers objectives

From the table above, majority of respondents were tied at 48% with other agreeing and others
being neutral. 13% of respondent disagreed and only 1% strongly disagrees and strongly
agrees. The results show that conflicting corporate goals with CRE managers objectives has an

69
average contribution to difficulties faced by corporate real estate managers. This is shown by
the mean score of 3.33

4.5.1.5 Inability to report to the highest possible level in the organization

The tale above shows that majority of respondents agree that inability to report to the highest
possible level in the organization. This is shown by 49% percent of respondents agreeing that
it contributes to difficulties faced by corporate real estate managers. 33% of respondents were
neutral and only 3% disagreed. This is shown by a mean score of 3.71

Table 5: Anova table for significance of corporate factors

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Underestimation of CRE value by executives 120 458 3.816667 0.604762
Ignorance of real estate at borad level 120 493 4.108333 0.467157
Limited accessibility to latest organisation objectives 120 352 2.933333 0.667787
Conflicting corporate goals with CRE managers objectives 120 399 3.325 0.557353
inability to report to the highest possible level in the organisation 120 455 3.791667 0.552871

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 103.4433 4 25.86083 45.371 2.84E-33 2.386909
Within Groups 339.1417 595 0.569986

Total 442.585 599

Source: researchers field data

4.5.2 Human factors

Figure 10: Human factors

70
Analysis
Table below shows the summary of the results on human factors identified as contributing to
difficulties faced by corporate real estate managers in Gaborone. The use of percentages as
well as mean scores indicate the level at which each variable significantly contribute to the
difficulties faced by corporate real estate managers. The human factors consist of eight
variables which include: poor communication, lack of planning, lack of skill diversity, poor
management skills, failure to maintain current knowledge, failure to develop measures and
demonstrate performance, poor problem solving skills and poor time management. The overall
mean score of the corporate factors is 3.65, this means that the respondents agree that human
factors contribute to challenges faced by corporate real estate managers in Gaborone.
Therefore, human factors have significance on contributing to the difficulties faced by
corporate real estate managers in Gaborone.

Interpretation
From the results, the influence of human factors is found to be statistically significant. Lack of
planning has the highest impact on the challenges faced by corporate real estate managers in
Gaborone. This is possibly due to too much workload hence they cant plan . The lowest human
variable is poor problem solving skills. This is possibly because most corporate real estate
managers have skills in all areas of real estate hence have acquired various skills to deal with
problems.

Discussion

71
Communication from the CRE professionals to senior management is not often abundant. A
survey by (Gillies & Dow, 2002) asked respondents to agree that “Real estate information is
regularly reported to corporate executives”. The response was 3.2 on a scale from 1- strongly
disagree, through 3- not sure, to 5- strongly agree. The implication is that information is passed
to corporate executives less than half the time. Clearly this is an area where the corporate real
estate industry needs to improve. If the real estate is not communicated to senior management,
the organisations options can be restricted.

According to (Gillies & Dow, 2002) the challenge that many CRE managers have that of
finding time to develop forward thinking processes and standards, as well as coping with the
day to day demands of the role.

As per (Gillies & Dow, 2002) there is no dispute that the skills, knowledge, and motivations of
different professionals operating in the property industry vary considerably. The differences
tend to arise from the skills required for success in each field. The impact of the need for
specialist skills is an increase in the number of advisers and contractors involved in any
property project. For example, a relocation project could require a tenant to employ several
advisers, many of which will be involved only briefly. The CRE manager, must build effective
teams from this group and achieve continuity throughout the project. The CRE manager must
see the whole process through from conception to completion. Project management skills are
imperative but are often learned on the job. The challenge is for CRE managers to build project
management skills and capabilities. These are, and will be, a critical success factor.

Federick Taylor said, “ if you cannot measure it, you cannot improve it”. Performance
management systems can be internally inconsistent. For example, the individual or team
charged with meeting performance targets, but they have incomplete control over the resources
to achieve those targets. This inconsistency can lead to serious problems in terms of motivation
or stress on a CRE manager. Review of performance management system often uncovers
poorly defined roles or responsibilities and weak planning and project evaluation processes.
Because the data exists, many performance management regimes focus on the input of real
estate resource such as total costs, rental levels, and space per employee. A major shift is
required to focus on the outputs.

The chief executive is likely to be more focused on how the CRE function is helping achieve
the corporate objectives. The optimum performance management system will review and
encourage better results for the organisation. If presented well, this output-focused reporting

72
will be a key communication tool. The challenge is for CRE manager to develop the measures
and demonstrate performance (Gillies & Dow, 2002).

Table 6: Human factors for objective 1

Total Total % Strongly disagree Disagree Neutral Agree Strongly agree Mean scores Remarks
Human factors 1 2 3 4 5
Poor communication 120 100% 0% 10% 67% 21% 2% 3.15 Neutral
Lack of planning 120 100% 0% 3% 13% 55% 29% 4.1 Agree
Lack of skill diversity 120 100% 0% 7% 56% 30% 7% 3.37 Neutral
Poo management skills 120 100% 0% 3% 16% 53% 28% 4.06 Agree
Failure to maintain current knowledge 120 100% 0% 5% 42% 45% 8% 3.56 Neutral
Failure to develop measures and demostrate performance 120 100% 0% 1% 38% 16% 45% 4.05 Agree
Poor problem solving skills 120 100% 0% 15% 58% 27% 0% 3.12 Neural
Poor time management 120 100% 0% 3% 34% 47% 16% 3.76 Agree
Overall mean score 3.65 Agree

Source: researchers field data

4.5.2.1 Poor communication

The table above shows that 67% of the respondents were neutral about poor communication as
a contribution to difficulties faced by corporate real estate managers while 21% were agreeing
and 10% disagree. A mean score of 3.15 was recorded which means poor communication has
an average contribution to difficulties faced by corporate real estate managers.

4.5.2.2 Lack of planning

From the table above, it shows that 55% of the respondents agree that lack of planning
contributes to difficulties faced by corporate managers real estate while 29% strongly
agreed.13% of respondents were neutral and only 3% disagreed. A mean score of 4.1 was
recorded which means lack of planning contributes to difficulties faced by corporate real estate
managers.

4.5.2.3 Lack of skill diversity

The table above shows that majority of respondents were neutral about the lack of skill diversity
as contributing to difficulties faced by corporate real estate managers. This is shown by 56%
percent of respondents. 30% of respondents agreed while only 7% of respondents disagreed. A
mean of 3.37 shown that lack of skill diversity has an average contribution to difficulties faced
by corporate real estate.

4.5.2.4 Poor project management skills

From the table above, it shows that 53% of the respondents agree that poor management skills
contribute to difficulties faced by corporate managers real estate while 28% strongly
agreed.16% of respondents were neutral and only 3% disagreed. A mean score of 4.06 was

73
recorded which means poor management skills contributes to difficulties faced by corporate
real estate managers

4.5.2.5 Failure to maintain current knowledge

The table above shows that majority of respondents agree that failure to maintain current
knowledge contributes to the challenges faced by corporate real estate managers. This is shown
by 45% percent of respondents agreeing that it contributes to difficulties faced by corporate
real estate managers. 42% of respondents were neutral and only 5% disagreed. This is shown
by a mean score of 3.56.

4.5.2.6 Failure to develop measures and demonstrate performance

From the table above, it shows that 45% of the respondents strongly agree that failure to
develop measures and demonstrate performance contributes to difficulties faced by corporate
managers real estate while 38% were neutral.16% of respondents agreed and only 1%
disagreed. A mean score of 4.05 was recorded which means failure to develop measures and
demonstrate performance contributes to difficulties faced by corporate real estate managers.

4.5.2.7 Poor problem solving skills

The table above shows that majority of respondents were neutral about poor problem solving
skills contributing to difficulties faced by corporate real estate managers. This is shown by 58%
percent of respondents being neutral about the variable contributing to difficulties faced by
corporate real estate managers. 27% of respondents were in agreement and 15% disagreed. This
is shown by a mean score of 3.12

4.5.2.8 Poor time management

From the table above, it shows that 47% of the respondents’ agree that poor time management
contributes to difficulties faced by corporate managers’ real estate while 34% were neutral. 3%
disagreed. A mean score of 3.76 was recorded which means poor time management contributes
to difficulties faced by corporate real estate managers.

Table 7: Anova table for human factors

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Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Poor communication 120 376 3.133333 0.335014
Lack of planning 120 495 4.125 0.513655
Lack of skill diversity 120 404 3.366667 0.503081
Poo management skills 120 488 4.066667 0.55014
Failure to maintain current knowledge 120 426 3.55 0.501681
Failure to develop measures and demostrate performance 120 487 4.058333 0.862115
Poor problem solving skills 120 342 2.85 0.128571
Poor time management 120 454 3.783333 0.557703

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 188.65 7 26.95 54.5552 0% 2.019181
Within Groups 470.2833 952 0.493995

Total 658.9333 959

Source: researchers field data

4.5.3 Organizational factors

Figure 11: Organizational factors

Analysis
Table below shows the summary of the results on organisational factors identified as
contributing to difficulties faced by corporate real estate managers in Gaborone. The use of

75
percentages as well as mean scores indicate the level at which each variable significantly
contribute to the difficulties faced by corporate real estate managers. The organisational factors
consist of five variables which include: Providers do not provide what CRE managers need,
poor structure of the organization and CRE functions, inconsistent management system,
inadequate resources, unclear roles and responsibilities of CRE function. The overall mean
score of the corporate factors is 3.27, this means that the respondents are not knowledgeable
enough to agree or disagree with the factor. Therefore, organisational factors have significance
on contributing to the difficulties faced by corporate real estate managers in Gaborone.

Interpretation
From the results, the influence of organizational factors is found to be statistically significant.
Inadequate resources highest impact on the challenges faced by corporate real estate managers
in Gaborone. This is possibly due to the organization not providing enough finance. The lowest
corporate variable is poor structure of the organization and function. This is possibly because
organizations have provided proper structures showing acceptability to corporate real estate.

Discussion
According to Gillies & Dow (2002) a decentralised structure is disappearing in favour of central
corporate real estate teams. Technology, the growth in competence of national service
providers and adoption of company-wide policies and standards are making a compelling case
for centralising and making best use of the limited availability of experience and expertise in
the corporate real estate function. In decentralised structures, it is difficult to get the region or
subsidiary to appreciate the importance of adopting mature corporate real estate strategies.
There are significant risks involved when inexperienced people deal with real estate. Problems
arise when real estate is managed and treated in different ways across countries. There is not
only an increased risk of technical incompetence, but also high probability of ad hoc reactive
solutions driven by local managers reinventing the wheel.

According to Gillies & Dow (2002) the key is to create a coherent set of responsibilities that
fit clearly with the organization’s goals. Clarity on roles and responsibilities is essential if
performance is to be managed with certainty.

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Table 8: Organizational factor for objective 1

Total Total % Strongly disagree Disagree Neutral Agree Strongly agree Mean scores Mean scores
Organisational factors 1 2 3 4 5
Providers do not provide wha CRE managers need 120 100% 0% 11% 44% 42% 3% 3.37 Neutral
Poor structure of the oranisation and CRE functions 120 100% 0% 25% 60% 14% 1% 2.91 Neutral
Incosistent managemet system 120 100% 0% 16% 49% 34% 1% 3.2 Neutral
Inadequate resources 120 100% 0% 13% 50% 12% 25% 3.49 Agree
Unclear roles and esponsibilities of CRE funtion 120 100% 0% 15% 40% 39% 6% 3.36 Neutral
Overall mean score 3.266 Neutral

Source: researchers field data

4.5.3.1 Providers do not provide what CRE managers need

The table above shows that majority of respondents were neutral about providers do not provide
what CRE managers need contributing to difficulties faced by corporate real estate managers.
This is shown by 44% of respondents being neutral about the variable contributing to
difficulties faced by corporate real estate managers. 42% of respondents were in agreement and
11% disagreed. This is shown by a mean score of 3.37

4.5.3.2 Poor structure of the organisation and CRE functions

From the table above, it shows that 60% of the respondents were neutral about the contribution
of poor structure of the organisation and CRE functions to difficulties faced by corporate real
estate managers while 25% disagreed and only 14% agreed. A mean score of 2.91 was recorded
which means poor structure of the organisation and CRE functions as an average contribution
to difficulties faced by corporate real estate managers.

4.5.3.3 Inconsistent management system

The table above shows that majority of respondents were neutral about inconsistent
management system contributing to difficulties faced by corporate real estate managers. This
is shown by 49% of respondents being neutral about the variable contributing to difficulties
faced by corporate real estate managers. 34% of respondents were in agreement and 16%
disagreed. This is shown by a mean score of 3.2

4.5.3.4 Inadequate resources

From the table above, it shows that 50% of the respondents’ were neutral about the contribution
of inadequate resources to difficulties faced by corporate real estate managers while 13%
disagreed and 25% were in strong agreement while 12% agreed. A mean score of 3.49 was
recorded which means inadequate resources has a contribution to difficulties faced by corporate
real estate managers.
77
4.5.3.5 Unclear roles and responsibilities of CRE function

The table above shows that majority of respondents were neutral about unclear roles and
responsibilities of CRE function contributing to difficulties faced by corporate real estate
managers. This is shown by 4% of respondents being neutral about the variable contributing to
difficulties faced by corporate real estate managers. 39% of respondents were in agreement and
15% disagreed. This is shown by a mean score of 3.36

Table 9: Anova test for organizational factor

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Providers do not provide wha CRE managers need 120 406 3.383333 0.52409
Poor structure of the oranisation and CRE functions 120 350 2.916667 0.446779
Incosistent managemet system 120 384 3.2 0.480672
Inadequate resources 120 421 3.508333 1.02514
Unclear roles and esponsibilities of CRE funtion 120 404 3.366667 0.671148

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 25.03333 4 6.258333 9.940713 8.61E-08 2.386909
Within Groups 374.5917 595 0.629566

Total 399.625 599

Source: researchers field data

4.5.4 Financial factors

Figure 12: Financial factors

78
Analysis

Table below shows the summary of the results on financial factors identified as contributing to
difficulties faced by corporate real estate managers in Gaborone. The use of percentages as
well as mean scores indicate the level at which each variable significantly contribute to the
difficulties faced by corporate real estate managers. The financial factors consist of two
variables which include: insufficient funds and management costs. The overall mean score of
the corporate factors is 3.06, this means that the respondents are not knowledgeable enough to
agree or disagree with the factor. Therefore, financial factors have significance on contributing
to the difficulties faced by corporate real estate managers in Gaborone.

Interpretation

From the results, the influence of financial factors is found to be statistically significant.
Insufficient funds highest impact on the challenges faced by corporate real estate managers in
Gaborone compared to management costs. This is possibly due to the organization not
providing enough finance. The lowest corporate variable is management cost of the
organization and function.

Table 10: Financial factors for objective 1

Total Total % Strongly disagree Disagree Neutral Agree Strongly agree Mean scores Mean scores
Financial factors 1 2 3 4 5
Insufficient funds 120 100% 1% 21% 59% 18% 1% 2.97 Neutral
Management costs 120 100% 0% 18% 50% 31% 1% 3.15 Neutral
Overall mean score 3.06 Neutral

Source: researchers field data

4.5.4.1 Insufficient funds

From the table above, it shows that 59% of the respondents were neutral about the contribution
of insufficient funds to difficulties faced by corporate real estate managers while 21% disagreed
and 1% was in strong agreement while 18% agreed. A mean score of 2.97 was recorded which
means insufficient funds has a contribution to difficulties faced by corporate real estate
managers.

4.5.4.2 Management costs

The table above shows that majority of respondents were neutral about management costs
contributing to difficulties faced by corporate real estate managers. This is shown by 50% of

79
respondents being neutral about the variable contributing to difficulties faced by corporate real
estate managers. 31% of respondents agreed and 18% disagreed. Looking at the overall mean
score of 3.06, it shows that this variable has an average contribution.

Table 11: Anova test for financial factors

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Insufficient funds 120 357 2.975 0.495168
Management costs 120 379 3.158333 0.504132

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 2.016667 1 2.016667 4.03616 0.045664 3.880827
Within Groups 118.9167 238 0.49965

Total 120.9333 239

Source: researchers field data

4.6 Findings addressing Objective 2

To identify variables that were significant in contributing to the challenges faced by corporate
real estate managers in Gaborone, overall mean scores and regression analysis was used.
Regression analysis helps in determining e relationship between two or more variable. The
dependent variable was difficulties faced by corporate real estate managers in Gaborone. The
independent variables were all the variables that were classified under corporate,
organizational, human and financial factors. The results of the overall mean scores are
discussed below followed by those of the regression analysis

4.5.1 Corporate factors

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Figure 13:Corporate factors

This factor consists of five variables namely underestimation of CRE value by executives,
ignorance of real estate at board level Limited accessibility to latest organisation objectives,
conflicting corporate goals with CRE managers objectives and inability to report to the highest
possible level in the organisation as depicted in table below. The findings reveal that the
corporate factors highly contribute to the difficulties faced by corporate real estate managers
in Gaborone. This is emphasized by an overall mean score of 3.74 ANOVA was then used to
determine whether the factor is significant or insignificant, the results show that the P-value is
less than 5%. Therefore corporate factors have a significant contribution to difficulties faced
by corporate real estate managers in Gaborone.

Table 12: Corporate factors for objective 2

TOTAL Very low Low Aveage High Very high Mean scores Remarks
Corporate facors 1 2 3 4 5
Underestimation of CRE value by executives 100% 0% 2% 49% 47% 2% 3.49 Average
Ignorance of real estate at borad level 100% 0% 5% 56% 36% 3% 3.37 Average
Limited accessibility to latest organisation objectives 100% 0% 2% 10% 52% 36% 4.22 High
Conflicting corporate goals with CRE managers objectives 100% 0% 3% 48% 48% 1% 3.47 High
inability to report to the highest possible level in the organisation 100% 0% 2% 13% 51% 34% 4.17 High
Overall mean score 3.74 High

Source: researchers field data

4.5.1.1 Underestimation of CRE value by executives

The table above reveals that the majority of the respondents at 49% showed that
underestimation of CRE value by executives highly contributes to the difficulties faced by
corporate real estate managers in Gaborone while the other 49% of the respondents revealed
the impact in average. The remaining 2% of the respondents believed the contribution to be

81
low. Therefore, the results suggest that underestimation of CRE value by executives highly
contributes to the difficulties faced by corporate real estate managers as shown by mean score
of 3.74.

4.5.1.2 Ignorance of real estate at board level

The above information showed the majority of the respondents at 56% believe that ignorance
of real estate at board level averagely contributes to the difficulties faced by corporate real
estate managers in Gaborone. 39% of the respondents believed the impact to be high while the
remaining 39% believed the impact to be low. The results revealed that ignorance of real estate
at board level having an average contribution to difficulties faced by corporate real estate
managers as shown be mean score of 3.37.

4.5.1.3 Limited accessibility to latest organization objectives

The results show that 88% of the respondents which is majority believe that limited
accessibility to latest organization objectives has a high contribution to the difficulties faced by
corporate real estate managers while 10% of the responds believed the contribution to be
average. A minimum number of respondents at 25% believed the impact to be low. Shown by
the mean score of 4.22, the result reveals that limited accessibility to latest organization
objectives contributes to difficulties faced by corporate real estate managers.

4.5.1.4 Conflicting corporate goals with CRE managers objectives

From the table above it can be noted that most of the respondents at 49% showed that
conflicting corporate goals with CRE managers objectives highly contributes to the difficulties
faced by corporate real estate managers while 48 & of the respondents revealed that the impact
is average. Therefore, the results suggests that the conflicting corporate goals with CRE
managers objectives highly contributes to the difficulties faced by corporate real estate
managers as shown by the mean score of 3.47.

4.5.1.5 Inability to report to the highest possible level in the organization

According to the table above it is clear that most of the respondents at 85% believes that
inability to report to the highest possible level in the organization highly contributes to the
difficulties faced by corporate real estate managers while 13% of the respondents revealed that
the impact is average. The remaining 2% of the respondents believed the impact to below.
Therefore, the results suggest that inability to report to the highest possible level in the
organization as shown by the mean score of 4.17.
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4.5.2 Human factors

Figure 14: Human factors

Analysis
The overall mean score for the human factors is 3.76 which means that the respondents agree
that human factors are factor variables that highly contribute to the challenges faced by
corporate real estate managers in Gaborone. According to figure 6 above and table 13 below,
the human factor variable with the highest mean score are poor time management and poor
problem solving skills. The human variable with the lowest mean score is lack of skill diversity.

Interpretation
From the results, the influence of human factors is found to be statistically significant. Poor
time management and poor problem-solving skills has the highest impact on the challenges
faced by corporate real estate managers in Gaborone. This is possibly due to the amount of
work that is demanded from little or limited staff usually assigned to the corporate real estate
department. Hence this affects the manager as he overworks and sometimes does not have
enough staff to consult when having issues that may assist in problem solving situations. Lack
of skill diversity on the other hand had a low impact. This is possibly due to experience that
corporate real estate managers have as they usually have worked in different areas of real estate
hence learned to tackle different situations related to real estate.

This factor consists of eight variables namely poor communication, lack of planning, lack of
skill diversity, poor management skills, failure to maintain current knowledge, failure to
develop measures and demonstrate performance, poor problem-solving skills and poor time
83
management as depicted in table 13 below. The findings reveal that the human factors highly
contribute to the difficulties faced by corporate real estate managers in Gaborone. Therefore,
human factors have a significant contribution to difficulties faced by corporate real estate
managers in Gaborone.

Table 13: Human factors for objective 2

TOTAL Very low Low Aveage High Very high Mean scores Remarks
Human factors 1 2 3 4 5
Poor communication 100% 0% 2% 50% 47% 1% 3.63 High
Lack of planning 100% 0% 15% 8% 76% 1% 3.48 High
Lack of skill diversity 100% 0% 23% 8% 67% 2% 3.20 Average
Poo management skills 100% 0% 36% 9% 54% 1% 3.72 High
Failure to maintain current knowledge 100% 0% 3% 47% 25% 25% 3.74 High
Failure to develop measures and demostrate performance 100% 0% 1% 39% 45% 15% 4.08 Very high
Poor problem solving skills 100% 0% 1% 27% 35% 37% 4.10 Very high
Poor time management 100% 0% 3% 16% 49% 32% 4.10 Very high
Overall mean score 3.76 High

Source: researchers field data

4.5.2.1 Poor communication

The results show that 48% of the respondents believe that poor communication has an average
contribution to the difficulties faced by corporate real estate managers while 50% of the
responds believed the contribution to be average. A minimum number of respondents at 2%
believed the impact to be low. Shown by the mean score of 3.63, the result reveals that poor
communication contributes to difficulties faced by corporate real estate managers.

4.5.2.2 Lack of planning

The results show that 80% of the respondents which is majority believe that lack of planning
has a high contribution to the difficulties faced by corporate real estate managers while 8% of
the responds believed the contribution to be average. A few respondents at 15% believed the
impact to be low. Shown by the mean score of 3.48, the result reveals that lack of planning
contributes to difficulties faced by corporate real estate managers.

4.5.2.3 Lack of skill diversity

From the table above it can be noted that most of the respondents at 69% showed that lack of
skill diversity has an average contribution to the difficulties faced by corporate real estate
managers while 8% of the respondents revealed that the impact is average. Therefore, the
results suggests that lack of skill diversity has an average contribution to the difficulties faced
by corporate real estate managers as shown by the mean score of 3.20.

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4.5.2.4 Poor management skills

The results show that 55% of the respondents which is majority believe that poor management
skills has a high contribution to the difficulties faced by corporate real estate managers while
9% of the responds believed the contribution to be average. A few respondents at 36% believed
the impact to be low. Shown by the mean score of 3.72, the result reveals that poor management
skills contribute to difficulties faced by corporate real estate managers.

4.5.2.5 Failure to maintain current knowledge

From the table above it can be noted that most of the respondents at 50% showed that failure
to maintain current knowledge has a high contribution to the difficulties faced by corporate real
estate managers while 47% of the respondents revealed that the impact is average. Therefore,
the results suggests that failure to maintain current knowledge has a high contribution to the
difficulties faced by corporate real estate managers as shown by the mean score of 3.74.

4.5.2.6 Failure to develop measures and demonstrate performance

From the table above, it shows that 60% of the respondents indicated that failure to develop
measures and demonstrate performance has a high contribution to difficulties faced by
corporate managers real estate while 39% were neutral.1% of respondents believed to have a
low impact. A mean score of 4.08 means failure to develop measures and demonstrate
performance has a very high contribution to difficulties faced by corporate real estate managers.

4.5.2.7 Poor problem solving skills

The table above shows that majority of respondents believed that poor problem solving skills
has high contribution to difficulties faced by corporate real estate managers. This is shown by
72% percent of respondents. 27% believed it had an average contribution. This is shown by a
mean score of 4.1 which proves that it has a very high contribution.

4.5.2.8 Poor time management

From the table above, it shows that 81% of the respondents believe that poor time management
has a high contributes to difficulties faced by corporate managers’ real estate while 16% has
an average contribution. A mean score of 4.1 was recorded which means poor time
management has a high contribution to difficulties faced by corporate real estate managers.

4.5.3 Organizational factors

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Figure 15: organizational factors

The organisational factors consist of five variables which include: Providers do not provide
what CRE managers need, poor structure of the organization and CRE functions, inconsistent
management system, inadequate resources, unclear roles and responsibilities of CRE function.
The overall mean score of the corporate factors is 3.35, this means that the variables averagely
has an impact on difficulties faced by corporate real estate mangers. Therefore, organisational
factors have significance on contributing to the difficulties faced by corporate real estate
managers in Gaborone.

Table 14: Organisational factors for objective 2

TOTAL Very low Low Aveage High Very high Mean scores Remarks
Organisational factors 1 2 3 4 5
Providers do not provide wha CRE managers need 100% 0% 8% 62% 27% 3% 3.25 Average
Poor structure of the oranisation and CRE functions 100% 0% 14% 62% 22% 2% 3.12 Average
Incosistent managemet system 100% 0% 12% 43% 42% 3% 3.36 Average
Inadequate resources 100% 0% 15% 39% 28% 18% 3.49 Average
Unclear roles and esponsibilities of CRE funtion 100% 0% 5% 50% 30% 15% 3.55 High
Overall mean score 3.35 Average

Source: researchers field data

4.5.3.1 Providers do not provide what CRE managers need

According to the information depicted above most respondents at 62% believes that providers
not providing what CRE managers need averagely impacts difficulties faced by corporate real
estate managers need in Gaborone. 30% of the respondents believed the impact to be high while
the remaining 8% of respondents believed the impact to be low. The results revealed that

86
providers not providing what CRE managers need has an average impact as shown by the mean
score of 3.35.

4.5.3.2 Poor structure of the organisation and CRE functions

From the table above, it shows that 62% of the respondents’ believed that there is an average
contribution of poor structure of the organisation and CRE functions to difficulties faced by
corporate real estate managers while 14% believed that the variable has a low impact and only
24% has a high impact. A mean score of 3.12 was recorded which means poor structure of the
organisation and CRE functions has average contribution to difficulties faced by corporate real
estate managers.

4.5.3.3 Inconsistent management system

The table above shows that majority of respondents believe there is average inconsistent
management system contribution to difficulties faced by corporate real estate managers. This
is shown by 43% of respondents. 45% of respondents believed it had a high impact and 12%
believed was low. This is shown by a mean score of 3.36

4.5.3.4 Inadequate resources

From the table above, it shows that 39% of the respondents’ believed that inadequate resources
had an average impact on difficulties faced by corporate real estate managers while 46%
believed to have a high impact and 15% had a low impact. A mean score of 3.49 was recorded
which means inadequate resources has an average impact to difficulties faced by corporate real
estate managers.

4.5.3.5 Unclear roles and responsibilities of CRE function

The table above shows that majority of respondents believed that unclear roles and
responsibilities of CRE function had an average impact to difficulties faced by corporate real
estate managers. This is shown by 50% of respondents. 45% of respondents believed the impact
to be high and 5% low. This is shown by a mean score of 3.55

4.5.4 Financial factors

87
Figure 16: Financial factors

The financial factors consist of two variables which include: insufficient funds and
management costs. The overall mean score of the financial factors is 3.39, the variables
averagely have an impact on difficulties faced by corporate real estate mangers. Therefore,
financial factors have significance on contributing to the difficulties faced by corporate real
estate managers in Gaborone.

Table 15: Financial factors for objective 2

TOTAL Very low Low Aveage High Very high Mean scores Remarks
Financial factors 1 2 3 4 5
Insufficient funds 100% 0% 32% 49% 16% 3% 2.9 Average
Management costs 100% 0% 1% 24% 62% 13% 3.87 High
Overall mean score 3.39 Average

Source: researchers field data

4.5.4.1 Insufficient funds

From the table above, it shows that 49% of the respondents’ believed that insufficient funds
have an average impact to difficulties faced by corporate real estate managers while 19%
believed to have a high impact and 32% was of low impact. A mean score of 2.97 was recorded
which means insufficient funds has an average impact to difficulties faced by corporate real
estate managers.

4.5.4.2 Management costs

88
The table above shows that majority of respondents believed management costs have a high
contribution to difficulties faced by corporate real estate managers. This is shown by 75% of
respondents. 24% of respondents believe the impact to be average and the remaining 1%
believed the impact was low. Looking at the overall mean score of 3.39, it shows that this
variable has an average impact.

SPSS regressiom table

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .946 .895 .874 .186
a. Predictors: (Constant), maint, confl, planning, provs, poor,
limit, strc, ignor, fund, incos, tome, devel, prob, inad, Comm,
uncl, rep, failure, skill, value

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression 29.250 20 1.463 42.383 <.001b
Residual 3.416 99 .035
Total 32.667 119
a. Dependent Variable: DV
b. Predictors: (Constant), maint, confl, planning, provs, poor, limit, strc, ignor, fund,
incos, tome, devel, prob, inad, Comm, uncl, rep, failure, skill, value

89
 Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .692 .232 2.978 .004
Comm -.358 .152 -.386 -2.360 .020
planning .398 .125 .566 3.185 .002
skill .123 .118 .204 1.037 .302
poor .047 .063 .085 .736 .463
failure -.422 .104 -.700 -4.070 <.001
devel -.026 .091 -.036 -.284 .777
prob -.320 .098 -.502 -3.278 .001
tome -.160 .087 -.234 -1.845 .068
value .744 .285 .823 2.615 .010
ignor .139 .104 .161 1.347 .181
limit .324 .107 .428 3.018 .003
confl -.032 .269 -.035 -.119 .905
rep .155 .116 .209 1.330 .187
provs .043 .077 .051 .555 .580
strc .464 .102 .569 4.566 <.001
incos -.111 .102 -.155 -1.089 .279
inad -.208 .093 -.385 -2.240 .027
uncl .306 .103 .473 2.984 .004
fund -.084 .091 -.121 -.921 .359
maint -.079 .087 -.095 -.905 .368
a. Dependent Variable: DV

Looking at the table above it shows that only two variables were significant

4.7 Findings addressing objective 3

The third objective of the study was to develop a model that will help eliminate the difficulties
faced by corporate real estate managers in Gaborone through implementation of strategies that
enhance their an improve their productivity. Below is the discussion that explains the model
that was developed for the study.

90
 Challenges

FINANCIAL FACTORS
ORGANISATIONAL FACTORS Human factors
Insufficient funds
• Underestimation of CRE value
• Poor communication Management costs
by executives
• Ignorance of real estate at borad • Lack of planning
level
• Lack of skill diversity Solutions
• Conflicting corporate goals with
CRE managers objectives • Poor management skills
• inability to report to the highest Poor problem solving skills
possible level in the organisation
•
• Limited accessibility to latest
Poor time management
organisation objectives
•
Solutions
Include CRE in budgets
Solutions
Improve management

Time management
Set strategic planning
Educate executives on the value
of real estate Offer diverse mentorship

Cultivate interest of real estate at Develop measures and

board level demonstrate performance

Transparency Strengthen decision making skills

Improve communication Training

between executives and
managers
Review organizational structure
periodically
Set clear roles and
responsibilities for CRE function

Figure 17: Model

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4.7.1 Summary of findings

4.8 Hypothesis evaluation

This chapter outlines the hypothesis outlined in chapter 1 of the study

4.8.1 Hypothesis 1
Table 16: Correlation matrix

DV Human factors Corporate factors Organisational factors Financial factor

DV 1
F1 0.89 1
F2 0.91 0.971 1
F3 0.85 0.973 0.95 1
F4 0.90 0.938 0.94 0.94 1

Source: researchers field data

Table above was used to determine whether the factors significantly influences the difficulties
faced by corporate real estate managers in Gaborone. All the values of the identified factors are
greater than the critical R-value of 0.195 therefore they are outside the acceptable range which
means that there is a strong positive relationship between them and the research problem.

The null hypothesis of this study formulated that there are no identified significant factors
influencing difficulties faced by corporate real estate managers in Gaborone. The alternative
hypothesis formulated that there are significant factors influencing difficulties faced by
corporate real estate managers. From the literature review and results of the study factors
influencing the difficulties faced by corporate real estate management were identified and
discussed. Statistical analysis was also done through the use of ANOVA and it was revealed
that there are two factors that were identified to be influencing difficulties faced by corporate
real estate managers. These factors were corporate and human factors and had high overall
mean scores of 3.58 and 3.65 respectively.

4.8.2 Hypothesis 2
The null hypothesis of this study formulated that there are no significant impacts assessed on
factors that influence the difficulties faced by corporate real estate managers in Gaborone. The
alternative hypothesis on the other hand suggested that there are significant impacts on the
difficulties faced by corporate real estate managers in Gaborone. According to the results using
mean scores corporate and human factors had high overall mean scores at 3.74 and 3.76
respectively.

92
 4.8.3 Hypothesis 3
The last hypothesis was concerned with developing possible solutions for the study. The null
hypothesis was that there are no possible solutions that can be used to help with difficulties
faced by corporate real estate managers in Gaborone. In contrast, the alternative hypothesis
was there are possible solutions that can be developed by the researcher to solve difficulties
faced by corporate real estate managers in Gaborone. The results of the study and literature
discussed possible solutions that could eliminate the difficulties faced by corporate real estate
managers.

93
 CHAPTER 5: SUMMARY, CONCLUSION, RECOMMENDATION, AND
FURTHER AREAS OF STUDY

5.1 Introduction
The purpose of this chapter is to give a summary of the findings, conclusions,
recommendations, and limitations pf the research findings and areas of further study.

5.2 Summary of findings of the study

5.2.1 Objective 1 findings

The first objective was concerned with identifying the different factors influencing challenges
faced by corporate real estate managers in Gaborone. Twenty variables were identified, and
they were grouped under four factors which are human, corporate, organizational, and financial
factors. The results from the study show that the respondents are both agree and are neutral to
whether the proposed factors influence the difficulties faced by corporate real estate managers
in Gaborone through the mean scores. After analyzing with ANOVA, four of the factors which
were proposed were revealed to be significant in influencing the the difficulties faced by
corporate real estate managers in Botswana.

5.2.1 Objective 2 findings

The second objective was to assess how these factors impact the performance of corporate real
estate managers in Gaborone. Regression analysis was used to determine the factors which
impact the performance of corporate real estate managers in Gaborone. From the four factors
which were analyzed using the regression analysis, three were significant while only one was
insignificant. The significant factors were corporate factors, organizational factors and
financial factors.

5.2.3 Objective 3 findings

The third objective was to develop a model that can be used to eliminate or tackle the
difficulties faced by corporate real estate managers in Gaborone.

94
 5.3 Conclusions and implications of the study

Problem Results Implications Recommendations

To identify the Corporate, Corporations paying There should be an

difficulties faced by organisational, attention to property appointed member of
corporate real estate human and financial values and the board that will
mangers in factors had a importance attend to issues
Gaborone, significant influence relating to CRE
Botswana. management.

To assess the impact Corporate, Formulation of There should be an

on productivity organisational and strategies to mitigate easy communication
difficulties affecting finance factors had a the impacts of between CRE
corporate real estate significant impact on corporate, financial managers and
managers in the difficulties faced and organisational corporate executives
Gaborone, Botswana by corporate real impacts. so they always be on
estate managers. the same page.

To come up with Solutions were Implementation of There should be a

solutions that will pointed out that may the solutions pointed proper department
help eliminate help solve the out by CRE mangers that deals with CRE
difficulties faced by difficulties faced by management.
corporate real estate CRE managers in
managers in Gaborone
Gaborone,
Botswana.

5.3.1 Conclusions and implications of the study

The first implication of the research study is that it will help improve the work of corporate real
estate managers as solutions have been provided to eliminate the challenges faced by corporate
real estate managers in Gaborone.

95
 5.3.2 Implications on academia and society
The research study will have an implication on academia as it increases the availability of
information available on difficulties faced by corporate real estate managers especially in
Botswana where there is little information on corporate real estate management. Students and
other researchers will be able to reference this study for their own work. The study will also be
beneficial to corporate real estate managers in identifying factors that influences the challenges
faced by corporate real estate managers at their companies and a way to curb them.

5.3.3 Conclusion
This study has identified and explained the different variables that may influence difficulties
faced by corporate real estate managers in Gaborone. It is also explained and analyzed the
impacts of these variables on the difficulties faced by corporate real estate managers in
Gaborone. As discussed above the study has a significant impact on the academia. According
to the results the variables includes poor communication, lack of planning, lack of skill
diversity, poor management skills and poor problem solving skills.

5.4 Recommendations
The researcher recommends that there are should be awareness and accountability within the
organization to allow effective and efficient communication with the corporate real estate
managers and corporate executives.

The researcher recommends that there should be at,east one member of the board of directors
that will act as a link between the corporate executives and the CRE mangers to form a good
information flowing system.

5.5 Limitations
The major limitation to the findings of the study was the outbreak of Covid-19 pandemic
because data collection was restricted as some CRE managers were said to work from home
and were unavailable to answer questionnaires distributed. It was very difficult to administer
and collect questionnaire from the respondents due to precaution measures of the pandemic.

The other limitation was the strict financial budget. There was a lot of printing, binding and
money spent on transport to administer and collect data.

Respondents were also reluctant to respond to answering questionnaires as some felt that it was
just a waste of time and wanted to keep their companies’ confidentialities.

96
 5.6 Further areas of study
Additional research could be done on the challenges faced by corporate real estate managers in
other parts of the country so as to have an overall results on these challenges in the whole of
Botswana.

5.7 Chapter summary

This chapter has discussed the major findings of the research study and the implications on
academia. Recommendations by the researcher were outlined on what can be done to eliminate
the difficulties faced by corporate real estate managers in the future. Limitations to the findings
of the study were also discussed to show the constraints that the researcher underwent. Lastly
further possible areas of study were given which can be useful to other researchers in the field.

97
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