Start Page: 137
End Page: 160
Volume: 26
Issue Number: 02
Year: 2004
Publication: Journal of Real Estate Research

Abstract: Firms outsource business functions to focus on core competencies and cut operating expenses.  However, companies must consider agency costs in determining the optimal staffing/outsourcing balance.  Analysis of the views of corporate real estate managers and real estate service providers indicate that although they share a common vision of the role of corporate real estate, providers focus more on traditional real estate tasks than on corporate business strategy.  The optimum balance of staffing/outsourcing may consist of a corporate real estate staff that understands the overall corporate strategy and devotes its resources to strategic planning, program development, contracting, and monitoring outsourced tasks.