Corporate real estate management: a study of the viability of a combined property management style.(a case study of nssf and pck commercial properties)

Abstract

Corporate property management is the management of an organization or a corporation’s properties. In Kenya, considerable number of state corporations, institutions, private and public company own properties. The properties can either be purely for operational or sometimes for investment purposes. The various management styles that can be adopted by an organisation include; in house, outsourced or combined management style. In management of corporations’ property, no particular method can be termed to be adequately suitable. As a result, the study embarked on an analysis into the viability of a combined management style in commercial properties. It involved exploring the merits and demerits of in house and outsourced management styles and how they can be harmonised to form a possible combined management style. A two case study approach was chosen to avoid the likelihood of bias in the findings and to advance the credibility of the study. The case studies chosen were National Social Security Fund and Postal Corporation of Kenya. Two commercial buildings were selected purposively from the corporations to enable a possible in depth study. One of the buildings is located within the CBD while the other fronts Ronald Ngala Street. The entire research project started in October 2011 and was intended to end by 30th April, 2012. The field study was carried out between 27th February 2012 and the 16th of March 2012. The study adopted secondary and primary research methodology in collection of data and information on corporate property management. Secondary data was integral in the development of introduction, problem statement and literature review. Observation, self and research administered questionnaires were the main primary methods used to collect essential data from the case studies. According to the findings, there are three types of management styles in practice today, which is in house, outsourced and combined management style. Both NSSF and PCK have adopted a combined management style. A number of reasons were cited for opting for a combined style, and this included, the size of property investment, cost of management, independence and to ensure security of capital and income. The findings also made known the various mechanisms and measures put in place by the corporations and management firms to enhance partnership in a combined style; namely frequent meetings, a management agreement, delivery of promised services and a stable communication system. In order to ensure effectiveness and efficiency, the corporations should develop a practical property management policy that covers all the roles of property management and xi how a combined management style can function in the light of increased property investment by corporations. Furthermore, the policy can only be effective by instituting an annual or semi-annual capacity building and training program targeting the property managers, managers and subordinates involved in property management tasks. The research process had few setbacks, mainly from the case studies; some of the sampled respondents were not willing to fill the questionnaires. Consequently, the researcher had to increase the sample size to replace those who declined to fill the questionnaire. Moreover, the researcher was allowed to seek more information on the questionnaires meant for ISK officials (Valuation and estate management chapter) from the ISK library, this was helpful in overcoming the challenge of unanswered questions.