Agency Risks in Outsourcing Corporate Real Estate Functions

24 Pages Posted: 3 Jan 2007

See all articles by Karen M Gibler

Karen M Gibler

Georgia State University - Department of Real Estate

Roy T. Black

Georgia State University - Department of Real Estate

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.

Keywords: agency cost, staffing, outsourcing, corporate real estate

JEL Classification: L85, D21, D23, D78, D81, D84, D92

Suggested Citation

Gibler, Karen M and Black, Roy T., Agency Risks in Outsourcing Corporate Real Estate Functions. Journal of Real Estate Research, Vol. 26, No. 2, 2004, Available at SSRN: https://ssrn.com/abstract=954724

Karen M Gibler (Contact Author)

Georgia State University - Department of Real Estate ( email )

P.O. Box 4020
Atlanta, GA 30303-4020
United States

Roy T. Black

Georgia State University - Department of Real Estate ( email )

P.O. Box 4020
Atlanta, GA 30303-4020
United States
404-651-2760 (Phone)
404-651-3396 (Fax)

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