An output approach to property portfolio performance measurement

Purpose – The purpose of this paper is to demonstrate the analysis of portfolios of office properties using measures of business outputs, namely occupation efficiency and staff satisfaction.

Design/methodology/approach – Satisfaction is measured using a proprietary online survey instrument that has proved highly reliable and repeatable in three separate trials. The data on 192 buildings are analysed using data envelopment analysis.

Findings – Instant and significant differences are revealed between clusters of buildings and individual properties. The approach reveals inefficiencies that are concealed by more conventional cost-based metrics.

Practical implications – The study has proven to be of use in gaining organisational commitment to strategic property improvements.

Originality/value – The authors are not aware of this approach having been applied elsewhere in either research or application.