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Real Estate Portfolio Decision Making

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Infranomics

Part of the book series: Topics in Safety, Risk, Reliability and Quality ((TSRQ,volume 24))

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Abstract

Corporate or public organizations often own a real estate portfolio which has been acquired to serve certain organizational goals. However, some buildings in the portfolio might no longer serve these goals and could be sold or, conversely, buildings that could serve goals can be acquired. Choosing the combination of interventions that meets these different goals best is a multi-criteria group decision-making problem. Multiple Criteria Decision Analysis (MCDA) methodologies enable the aggregation of the performance rating of alternatives on different criteria into an overall performance rating. Given that criteria are properties by which to measure the portfolio’s performance MCDA approaches should help to find the intervention that meets different goals best. A survey on such approaches showed that they (1) use preference scales to which mathematical operations do not apply or (2) do not have a well-defined procedure for selecting the most preferred portfolio. In this chapter, a design methodology using preference scales to which mathematical operations are applicable has been converted into a portfolio design methodology so that it (1) allows all decision-makers to iteratively enter their criteria and preferences and (2) orders all possible portfolios based on the overall preference rating. It has been evaluated based on a case simulation with data from a Dutch municipality.

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Notes

  1. 1.

    Note that within this procedure preference is rated at an object level and portfolio level. For example, ‘user satisfaction’ and ‘technical state’ are rated on an object level. The percentage of buildings within the (new) portfolio having an overall preference rating of 40 or more on the criterion ‘user satisfaction’ is rated on a portfolio level.

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Author information

Authors and Affiliations

  1. Faculty of Architecture and The Built Environment, Department Real Estate & Housing, Delft University of Technology, P.O. Box 5043, 2600 GA, Delft, The Netherlands

    Monique H. Arkesteijn & Ruud Binnekamp

Authors
  1. Monique H. Arkesteijn
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  2. Ruud Binnekamp
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Corresponding author

Correspondence to Monique H. Arkesteijn .

Editor information

Editors and Affiliations

  1. Engineering Mngmt & Systems Engineering, Old Dominion University, Norfolk, Virginia, USA

    Adrian V. Gheorghe

  2. Institute for the Protection and Security of the Citizen, Joint Research Center, Petten, The Netherlands

    Marcelo Masera

  3. Engineering Management and Systems Eng., Old Dominion University, Norfolk, Virginia, USA

    Polinpapilinho F. Katina

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Arkesteijn, M.H., Binnekamp, R. (2014). Real Estate Portfolio Decision Making. In: Gheorghe, A., Masera, M., Katina, P. (eds) Infranomics. Topics in Safety, Risk, Reliability and Quality, vol 24. Springer, Cham. https://doi.org/10.1007/978-3-319-02493-6_7

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  • DOI: https://doi.org/10.1007/978-3-319-02493-6_7

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-02492-9

  • Online ISBN: 978-3-319-02493-6

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