Corporate real estate management as a source of competitive advantage

Organisational competitive advantage is a recent general management literature theme. Corporate Real Estate (CRE) as an organisational resource capable of improving organisational competitiveness is underrecognised. For CRE and its management to fully support a competitive organisation it is thought to be essential that CRE practices align with the organisational competitive positioning and its sources of competitive advantage. This paper presents part of a study of competitive advantage and CRE management (CREM) practices as a step towards recognising CRE's competitive contribution. A model of sustainable competitive advantage is introduced that contains theorised connections between CREM practices and Sources of Competitive Advantage (SCAs). Three advantages---Cost, Differentiation and Innovation---were identified and modelled. An empirical study of Australian CRE managers was then conducted to test the model and establish which competitive advantages were used. Of the three Sources of Competitive Advantage, Cost predominated, both in the model and the empirical data. The empirical study establishes the viability of the model as a useful device for CRE managers to evaluate their CRE practices and align their CREM with organisational modes of competition and competitive advantage.