If real estate is managed from an individual transaction perspective – instead of by applying a holistic portfolio strategy – the typical results are costs that are much higher than necessary, severely limited flexibility to adapt to changing demands, and a lack of fit with the operational and functional needs of the businesses. Few companies have created their portfolio of real estate holdings based on a holistic strategic vision aligned to the broader goals and objectives of the overall business. Instead, as demand for space surges and wanes, individual transactions are executed to meet the momentary needs for space. Transactions to acquire space usually are executed during economic up-ticks that create a need to expand. Not coincidentally, these economic up-ticks are usually accompanied by strong real estate markets and high costs for purchasing or leasing space. Often, even at high economic premiums, the properties acquired are poorly suited to the needs of the business and, instead, are simply the best from among a number of poor options. Likewise, the disposition of unneeded space generally occurs in economic down-cycles. As a result these transactions are made in weak real estate markets leading to unfavorable disposition terms, or even an inability to dispose of the space at all, resulting in accounting charges and write-offs for excess space.

Major reductions in occupancy costs			Optimized transaction terms, financial restructuring and renegotiations, identification of options with highest value potential, more efficient utilization, disposition to avoid excess charges, improved accounting treatments
Access to the right amount of space, when and where it’s required			The flexibility necessary to ensure that space is available to accommodate growth when needed, but also that costs can be reduced by shedding space when it is no longer required
Properties that are optimally suited to business requirements			Providing the business with the type of space required, in the right location, when it’s needed
Greater efficiency and flexibility			Applying standards and practices that ensure space is used wisely and effectively today, while also creating the flexibility necessary to make sure it can also quickly accommodate the needs of the future
Improved operational performance			Ensuring that the businesses can be configured correctly to facilitate interactions that are necessary to the efficient and effective operation of the company
Greater employee satisfaction and performance			High-quality workspace and amenities, improved access and commutes, an environment that allows people to perform to their highest potential
Improved real estate decision-making			Enhanced real estate processes and tools that provide decision-makers with the right information, rapidly, so they can quickly make the right decisions
Enhanced corporate image and identity			A physical environment that projects the right message about a company to its employees, customers, partners, the community, and its competitors

Case Studies

Please take some time to look at just a few of the many examples of how we have helped companies maximize the value of their portfolios:

Nailing the Purchase Price (pdf file)
Rethinking the Headquarters (pdf file)

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