Historically, most corporations have analyzed the lease or purchase of office and warehouse space using standard financial analyses of the project’s direct impact on “bottom line” figures like net operating income or EBITDA. Cutting edge corporations today are applying better operational and quantitative views to determine the true impact on a broader and more meaningful scale. They are taking a more thoughtful approach to understanding how corporate real estate decisions can enable improvement of productivity, profitability, attracting and retaining prime labor, continuity, sustainability, logistics and other key drivers. Additionally, the metrics for measuring performance and profitability, as they relate to a corporations real estate, can take a huge leap forward by applying similar, thoughtful applications.
We are only just starting to see the potential of these exciting new thought applications. Sensitizing a wide range of quantitative variables is allowing firms to leverage corporate real estate as a real strategic advantage in a highly competitive business environment. We continue to push the envelope in transforming corporate real estate into an enabler of the corporate business plan from the old line “necessary evil”. Exciting times for our industry!