Authors : Abdul Jalil Omar, Mohd Lizam Mohd Diah and Azlina Md Yassin
Abstract: Corporate Real Estate Management (CREM) is increasingly attracting attention from corporations. It is an evolving internal service provision that can be shown to make significant contributions to organisations’ success. Despite its importance, CREM faces dilution in justifying its importance especially through financial measures which is among the most important language to the senior management. This creates gaps between CREM’s performance financially with what the stakeholder understand that led to failure in improving its position within organisations. The study explores CREM financial ability through secondary data extracted from financial statement derived from companies’ annual report. These companies were selected from top 100 companies that fall under the category of corporate real estate based on three sectors namely as trading/services, industrial products and consumer products. Several financial measures were used such as property as percentage of total assets, return on property, property value per employee, property value increase or decrease and property as percentage of operating cost. The findings indicate that CRE increase over time in all sectors. Corporate real estate in consumer products sector found to be responsive compare to other sector in managing their corporate real estate.
Abdul Jalil Omar, Mohd Lizam Mohd Diah and Azlina Md Yassin, 2016. Exploring Financial Performance for Corporate Real Estate Management (CREM) in Malaysia. The Social Sciences, 11: 2732-2741.