Corporate Real Estate aligns property strategy to business strategy, creating opportunities for innovation within a real estate portfolio, and enhancing business functions. An effective CRE strategy needs to achieve four key outcomes
1. Engage with Stakeholders
It is important to engage with a variety of stakeholders, in both the private and public sectors. One of the keys to building a better partnership between landlords and tenants is a mutual understanding of the value creation specifically generated by the tenant and their lease.
For instance, how many tenants can quantify the contribution of their lease to the investment assets within their landlord’s portfolio.
2. Relevant, accurate information
It is also important to analyze and understand relevant and accurate information and – more importantly – the implications of the information.
Qualitative and quantitative measurement, along with an analysis of transactions and strategies, ensure that the portfolio holding structure is optimized to suit corporate requirements. Removal of internal biases adds to the benefit of third party validation and verification in compiling, assessing and presenting a recommended strategy. Quite simply, well-informed corporate occupiers are more powerful.
3. Seize Opportunities
Significant value can be created at any stage of the property cycle by a structured approach to CRE with and independent and impartial partner.
Unique experience and expert perspectives expand the universe of possibilities. The core question is always: what can we do differently?
4. Craft Strategies
To manage future uncertainties, strategies must be created, with a great deal of flexibility. An end-to-end CRE service provider allows for a holistic view across the spectrum of strategic and operational considerations. Controlling the value chain from strategy and implementation, to the full suite of estate management functions provide key advantages.
A careful implementation of a CRE strategy matches innovative and efficient property solutions that align types of users, location, demand and supply. Delivery according to the organizational objectives is crucial – whether those aims are cost savings, space utilization efficiencies, productivity gains or reputational value.
By Malcolm Horne