Background and aim – The aim of this paper is to look at the professionalization of municipal real estate management (MREM) from an organizational design perspective.Methods / Methodology – Analysis of current and recent MREMliterature in a Dutch context on organizational design. Results – It appears that organizational design is implicitly or explicitly concluded as being interesting and relevant, but no research was performed on this topic. In general, it seems MREM could be significantly better organized creating higher value of its real estate for society. Practical or social implications – The finding that organizational design is an interesting yet underexposed parameter contributes to an awareness at real estate professionals. A better organization of MREM will not only increase professionalism, but also create higher value for local authorities and society. Moreover, possibilities for future research have been identified. Ultimately, new research and more best case practices can advance the management of real estate at local governments.
In The Netherlands, the Real Estate Assessment Act regulates the yearly appraisal of all Dutch real estate. Municipal real estate is a sizable, and thus important, segment of this real estate market. This results in assessed values that are used for official purposes and taxes. The Dutch municipalities also use these assessed values for their budgeting plans and in their considerations concerning their real estate portfolio (e.g. disposal). The act provides quality requirements these assessed values have to meet. One of these requirements is that the appraised value corresponds with the market value of the real estate objects.
The purpose of this study is to show how local authorities (municipalities) deal with their community real estate. The study is an annually recurring research: every year since 2008 (except for 2013), Dutch municipalities have been asked to complete a questionnaire about how they manage their real estate. With these results it is possible to perform quantitative analyses on both trends and the current situation.The questionnaire responses have led to the following conclusions: (1) Half of themunicipalities has a policy but takes few risk measures, (2) Withdrawing local government, (3) Management and operations most outsourced tasks, (4) Obstacles remain unchanged, (5) Cost reduction most relevant policy theme since 2009, (6) Relevance of some policy themes depends on municipality size, (7) More real estate is offered, smaller percentage is sold, 8) More FTEs for real estate management, especially executive tasks and (9) Conscious focuson quality. Dutch municipalities tune their new developments of the municipal real estate policy to the results of the Barometer for Municipal Community Real Estate. This leads to a further development of professionalism of the municipal real estate portfolios.The contribution to science is showing patterns of community real estate management at Dutch municipalities. A longitudinal study of this size on this subject is unique in The Netherlands.
