For market-driven real estate development a variety of decisions have to be taken because success and failure of a development organization is affected by its decisions. Usually, decisions for initiating, continuing or terminating a real estate development project are based on evaluations of monetarily oriented criteria. It is hardly considered that at the early stages of a real estate development project there is a high level of risk and little information. Consequently, there is little quantitative data for effective valuation. In order to satisfy the requirements of a transparent and holistic approach for decision making it requires the consideration of qualitative indicators. Considering dynamic changing customer requirements and increasing demands of more flexible organizational structures it is necessary to contemplate the value creation process holistically. Furthermore, a process controlling system should be established based on a clear and transparent decision process in order to achieve the defined performance and objectives. For the implementation of a holistic, flexible process-oriented approach a hierarchically structured process model is developed. Here, universal reference modeling allows a base for easy modification or substitution of model components according to associated purposes. To achieve the objectives of transparent and effective process controlling a quality gates approach known from new product development of automotive industry is used and adapted to the specifications of sustainable office buildings. The main goal is to provide a clear and consistent process for making major decisions on real estate developments by evaluating process effectiveness. Additionally, the information obtained from evaluation process can be used for continuous improvement of value creation process through in-house benchmarking. According to scientific method of Deming a systematic approach is developed to help organizations improve its underlying processes and performance to achieve more efficient results. To ensure practical relevance the developed model is systematically verified by using appropriate valuation methods. The functionality and applicability of the reference process model and the developed methodology is verified through a research study and proved successful in practise. Flexibility and adaptability of the holistic, hierarchical process model could be demonstrated just as the possibility for easy modification or substitution of model components. Moreover, the scientific purpose of effective decision making in real estate development based on transparent, systematic and formal quality gate evaluation to benefit a development organization has been confirmed. Consistent and systematic feedback of information in the process of setting objectives, process modeling and controlling enables the targeted continuous improvement of process performance over the entire value chain of real estate development.     «

For market-driven real estate development a variety of decisions have to be taken because success and failure of a development organization is affected by its decisions. Usually, decisions for initiating, continuing or terminating a real estate development project are based on evaluations of monetarily oriented criteria. It is hardly considered that at the early stages of a real estate development project there is a high level of risk and little information. Consequently, there is little quantit...     »