Real estate portfolio decision making

Real estate portfolio decision making

Arkesteijn, M.H.
Binnekamp, R.

Architecture

Real Estate and Housing

2012-06-18

In the Netherlands municipalities own a substantial number of buildings within their city which have been acquired to serve societal goals. However, some buildings might no longer serve these goals and could be sold or, conversely, buildings that could serve societal goals can be acquired. More than one decision maker decides which intervention to select, choosing the intervention that meets the different goals best is a multi-criteria group decision making problem. Multiple Criteria Decision Analysis (MCDA) methodologies enable the aggregation of the performance rating of alternatives on different criteria into an overall performance rating. Alternatives are rated on preference on each criterion. Given that criteria are properties by which to measure the portfolio’s performance on a goal MCDA approaches help to find the intervention that meets different goals best. A survey is carried out on models that help decision makers to align the real estate portfolio to the organizational objectives and to select the best performing portfolio. The methods did either 1) use (preference) scales to which mathematical operations do not apply or 2) not have a well-defined procedure for selecting the most preferred portfolio. See Barzilai (2007) for the requirements for these operations to be applicable. Binnekamp (2010) devised a Preference-Based Design (PBD) methodology using preference scales to which mathematical operations are applicable enabling group decision making. This paper describes how this methodology has been converted into a Preference-Based Portfolio Design (PBPD) methodology that 1) allows all decision makers to iteratively enter their criteria and preferences and 2) orders all possible portfolios based on the overall preference rating.

corporate and public real estate management
portfolio level
multi criteria decision making
preference measurement

http://resolver.tudelft.nl/uuid:a23e7904-9073-48bf-b875-9b46ed96c6f7

CESUN 2012: 3rd International Engineering Systems Symposium, Delft University of Technology, The Netherlands, 18-20 June 2012

Institutional Repository

conference paper

(c) 2012 Arkesteijn, M.H.
Binnekamp, R.
Creative Commons BY NC ND