Corporate real estate can be commercial, retail, industrial or even residential. The purpose of corporate real estate assets is to meet the financial, functional and future flexibility needs of a business. Corporate real estate leaders today have to go beyond the traditional role which has been primarily financial.
Given that real estate is usually one of the largest costs for an organization, the simplistic view that looks at reducing costs may seem like a solid approach. But a more strategic view takes into account other factors, such as the revenue-boosting potential of real estate.
What do you want to accomplish by buying corporate real estate? Any decision must be directly linked to the strategic objectives of the business. Some strategic objectives may be to evolve a flexible work environment that fosters collaboration, to strive for environmental sustainability or to increase employee satisfaction.
For example, if workspace flexibility is a guide-driver for a business, then the real estate strategy has to focus on providing the type of space that matches the needs of the business, supports this core strategy and adds value to the organization.
Businesses that want to increase employee satisfaction have to look at site selection, the design of the workspace, facility amenities and environmental standards. Increasing employee satisfaction can increase financial returns due to lower rates of absenteeism and increased productivity.
Have a plan
Once goals are in place, a plan is necessary to decide how to achieve them. For example, a plan may outline a set of new office standards that include alternative workspaces, such as desk sharing. Buildings would, therefore, have to include open plan workstations and medium-sized conference rooms for team collaboration.
If objectives revolved around environmental sustainability, factors such as air quality and energy efficiency have to be taken into account.
If employee satisfaction is an objective, having the right facilities, considering transportation and parking, etc. is essential.
All corporations lease and own property to support their core business but they have to plan how their property holdings can contribute to the productivity and profitability of the company.
Find the right partners
Achieving business objectives may require some bold decisions and when making such decisions, it can help to get advice from those unencumbered by any conflict of interest. The best real estate brokers gain insight into your specific business challenges and context, and then help you to align your real estate strategy with your business needs.
UpFlip is a company with popular commerce options all in one convenient location. It transacts in business and commercial sales and rentals, from the smallest apartment buildings to the largest warehouse space. Working with buyers and sellers enables the bringing together of like-minded investors to ensure they’re perfectly matched.
Create a flexible portfolio
When looking at corporate real estate strategies, there’s a necessity for stability and yet flexibility at the lowest possible cost. Businesses need to look at the space they must have and need to have as well the space they want to have for the future.
They should aim for stability where they need it, flexibility where they need it and a culture that can add workers on a temporary basis without having the carry the cost of additional space.
The new fluidity in relationships and roles in workplaces means that new corporate real estate strategies must be able to deliver flexible spaces where multiple disciplines are able to operate in one space. A flexible corporate real estate portfolio offers the ability to strategically respond to market conditions in an increasingly competitive business environment.