An output approach to property portfolio performance measurement

Abstract

Purpose – The purpose of this paper is to demonstrate the analysis of portfolios of office properties using measures of business outputs, namely occupation efficiency and staff satisfaction. Design/methodology/approach – Satisfaction is measured using a proprietary online survey instrument that has proved highly reliable and repeatable in three separate trials. The data on 192 buildings are analysed using data envelopment analysis. Findings – Instant and significant differences are revealed between clusters of buildings and individual properties. The approach reveals inefficiencies that are concealed by more conventional cost-based metrics. Practical implications – The study has proven to be of use in gaining organisational commitment to strategic property improvements. Originality/value – The authors are not aware of this approach having been applied elsewhere in either research or application.</p