Modeling the value-adding attributes of real estate to the wealth maximization of the firm

Firms develop strategies to help them achieve their primary goal of maximizing the wealth of the shareholders. These strategies should define the supporting role corporate real estate management plays; however, current theory and practice do not adequately identify the direct and indirect methods by which corporate real estate management (CREM) adds value to the firm. This paper develops a model of how real estate adds value to the firm to help fill this void. This model can be then used to develop more precise and complete metrics to measure the value real estate adds to the firm.