Which Corporate Real Estate Management Functions Should be Outsourced?

Recently there has been much interest in outsourcing corporate real estate management functions. We explain why firms should consider outsourcing and identify both positive benefits and possible negative consequences of outsourcing. Further, we utilize concepts from the neoclassical theory of the firm, supported by the literature on corporate real estate outsourcing, to shed some light on how much and which corporate real estate management functions should be outsourced. Functions associated with “taskmasters,” “controllers,” and “dealmakers” are more likely to be outsourced successfully. “Intrepreneur” and “business strategist” management functions are more likely to be carried out more effectively by internal managers. Outsourcing the appropriate real estate management functions, consistent with each company’s individual needs, should enhance shareholder wealth.