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Corporate real estate ownership and the cost of occupancy in Finland
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School of Engineering |
Master's thesis
Electronic archive copy is available via Aalto Thesis Database.
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Maa-20
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Language
en
Pages
vii + 47 + [5]
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Abstract
Finnish companies own a significant share of commercial real estate.
Every company having its unique corporate real estate strategy being aligned to the core business.
The current thesis presents and analyses the CRE strategies from financial and operational point of view.
Previous research has observed the decreasing trend in CRE ownership and has predicted the increasing popularity of the sale and leaseback concept.
It is, however, impossible to foresee the turbulences and its impacts in the world economy and its impacts to CRE ownership.
Current research points out how the European financial crisis has tangled the asset ratios and the earlier predictions.
During last years the Finnish companies have recovered their financial positions and even executed new property investments.
The financial surviving is about cost, and the theoretic analysis and empiric study exhibits a direct link between ownership and cost higher CRE ownership results in lower occupancy cost and smaller CRE ownership in higher occupancy cost.
However, there are sectors where such link is not self-evident.
The thesis underlines the importance of understanding the company's whole expense base (including CRE related cost) which has a great impact to the business's profit (and loss).
The results of the thesis can be directly linked to the new features in the literature for CRE - cost effectiveness and competitiveness, industrial peculiarities and the direct impacts on company revenues.