In this paper a conceptual model is set up with regard to stimulating innovation-output of employees through supplying them with the right Corporate Real Estate (CRE). Literature study confirms that the existing relationship between different levels of cooperation and innovation output is strongly present. However, a knowledge gap can be identified for the effect that the physical environment can have on innovation and cooperation in particular. The conceptual model shows the way in which ongoing research is trying to reduce this gap by proving a link between CRE and cooperation within a company and with other parties of the so-called innovation system. Different levels of cooperation are distinguished and an extensive literature study on the link with CRE is described for each level. Both the advantages as possible dilemmas in choosing the right CRE-solutions are discussed.