Perception is finally changing! Corporate real estate is not merely an operating necessity; it’s a strategic resource. It affects everyone – customers, employees, investors, regulators. Real estate is not easy to manage. In many organizations, real estate remains a reactive, second order staff function, focused on discrete projects and transactions rather than on the company’s…
ENABLE THE BUSINESS PLAN Develop and propose solutions proactively to build sustainable, trusted relationships with key business and functional stakeholders. It’s also an opportunity to add value consistently across the business cycle, rather than at the time of transactional or operational events. DON’T LIMIT YOUR FOCUS TO FACILITIES & REAL ESTATE Instead, focus first…
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…
The market pendulum has fully swung to “landlord favored” in the vast majority of markets in the USA and globally, and is likely to stay that way for several years to come. This shift, coupled with rising inflation (that will increase the cost of building operating expenses), means significant cost increases for corporations whether they…
Every year, different industry groups, consultants and government entities publish their lists of “Top Locations for Business” (Cities, States & Countries). While the intent is good, and the methodology sound, there is significant fault in the findings and corporations should only use them as a comparative starting point. The data points are solid: Accessibility, cost…
Few areas hold as much impact on capital outlay as real estate and leasehold expenses. Ensuring that your company is not overpaying is integral to fiscal management. You know an audit is in order when you see: SIGNIFICANT JUMPS IN OPERATING EXPENSES / ADDITIONAL RENT Performing a simple trend analysis of your year-to-year operating…
Corporate leadership ranks “overall efficiency” as very high on their list of priorities. It’s not always directly related to corporate real estate, but it should be. When you tour one of your company’s facilities, it seems to be fairly efficient. What isn’t fully apparent are the significant gaps in utilization rates & overall efficiency created…
“If you always do what you always did, you will always get what you always got”. -Albert Einstein OLD SCHOOL THINKING The historic approach goes something like this: “We currently lease X square feet. We probably need about the same going forward or Y square feet because we have fewer people or more people,…
Although corporate real estate and facilities represent a very significant portion of the balance sheet and operating expenses, they often do not receive the attention they deserve despite the huge potential for creating competitive advantages, reducing costs and improving operating efficiency. Corporate real estate must be viewed as a strategic asset, not a liability or…
The costs to construct / renovate and furnish office space are key components in your company’s overall cost of space, particularly under current economic conditions. During the past few years, the costs of labor and materials have increased sharply while the lack of availability of each has become a significant problem. In addition, municipal permitting…