Author: Ronald C. Rutherford and Robert W. Stone

Start Page: 121
End Page: 130
Volume: 4
Issue Number: 3
Year: 1989
Publication: Journal of Real Estate Research

Abstract: This research investigates relationships between a corporation's rationale for forming a Corporate Real Estate Unit (CREU), its industry, and the type of CREU formed. Four conclusions are offered. First, there is no significant relationship between industry and the type of CREU formed. Second, relationships exist between the formation motives and the corporation's industry. Third, CREU formation by wholly owned subsidiaries is likely to be motivated by development and profits, while centralized and decentralized real estate departments are likely to be motivated by contracting efficiency and cost control. Fourth, a segregated effect is observed for the motives of profit and cost control.