Business and marketing strategies in responsible property investment

Abstract

Purpose

The purpose of this paper is to give an overview of business and marketing strategies pursued by responsible property developers, funds and investors in the USA and to draw conclusions for future activities in that sector from a transatlantic perspective.

Design/methodology/approach

Personal interviews are conducted with 42 developers, fund providers and managers, institutional, nonprofit and major private investors representing more than US$60 billion of responsible property assets under management. The data are complemented by an analysis of promotional documents. A cluster analysis is performed to classify the strategies of the participating companies and institutions and to explore any commonalities and differences.

Findings

Business and marketing strategies in responsible property investment (RPI) can be described and characterised within the three dimensions of location, building and people. RPI activities and investors in the USA usually transcend pure green building and aim to contribute significantly to smart growth, to sustainable urban development and revitalization.

Research limitations/implications

The results in this study are not fully representative of the US RPI community, with the study focussing on the core network of developers, real estate funds and large investors. Furthermore, issues of corporate governance and financial performance are omitted from this study. Interviews are conducted in autumn 2008, i.e. at a time when the major financial crisis reached a global scale, potentially influencing participants' perspectives and subsequent responses.

Practical implications

The findings may help RPI practitioners reflect on business and marketing strategies. European developers, real estate funds and investors can benefit in many respects from US experiences.

Originality/value

The research approach, applied to RPI focussing on business and marketing strategies for the first time, provides new insights for practitioners on both sides of the Atlantic. Above all, the findings may initiate further research to deepen the understanding of the RPI business.

Citation

Kriese, U. (2009), "Business and marketing strategies in responsible property investment", Journal of Property Investment & Finance, Vol. 27 No. 5, pp. 447-469. https://doi.org/10.1108/14635780910982331