Facilities Management and Corporate Real Estate Management: FM/CREM or FREM?

What is it about?

This paper explores similarities and dissimilarities between Facilities Management (FM) and Corporate Real Estate Management (CREM) regarding its history and key issues and whether the similarities may result in a further integration of FM and CREM. The paper is based on a review of FM and CREM literature, seven interviews with experienced academics and consultants, and the long experience of the author as a researcher and teacher in accommodating people and activities. The paper shows that both FM and CREM aim to supporting primary business processes by aligning the physical resources of organisations to the organisational strategies, in order to contribute to organisational performance and as such to add value to the organisation. Efficiently and effectively supporting of the primary activities and business purposes are key. Dissimilarities regard the focus on facilities and services (FM) versus a focus on buildings and real estate portfolios (CREM), and a shorter time frame and high flexibility of facilities (FM) versus a long life cycle and rather static buildings (CREM). In spite of the differences it is expected that both disciplines will be more integrated in the future.

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Why is it important?

This paper combines insights from two related disciplines with different histories and focus points and explores what they have in common. The common body of knowledge of FM and CREM may be used to improve both professions and disciplines and may result in a more integrated approach of Facilities and Real Estate Management (FREM).