As the world tries to negotiate its way out of the GFC, new emerging business issues and enabling technologies continue to test the resolve and skills of corporate real estate (CRE) executives. Most of the five major challenges are intertwined and solving one will likely impact the outcome of another. And to understand and manage
As with so many aspects of business, enabling technologies have driven changes in the way we work. Activity-based working (ABW) is the newest trend to take off in the design and use of office accommodation – a trend that appears to be getting universal approval. But there may be a downside to ABW and it
For companies seeking new office premises, manufacturing plants or distribution centres, during the procurement process the “own versus lease” debate usually arises. The issue is often phrased around why the company should commit to paying high occupancy and rental costs to a developer or investor rather than own its operating premises and facilities at a
The lease negotiation journey can be challenging for those without core property skills and not usually involved in the industry. The extensive jargon, variety of rental structures and plethora of complex lease terms can be daunting. Leasing incentives is another component of the lease negotiation process that is not well-understood, and that has details that
In the current commercial property market, tenant leasing incentives are well-entrenched. Based on the dynamics of the market, with landlords seeking to attract quality tenants to their properties, the capital payments involved can be significant. For tenants contemplating a relocation or consolidation, leasing incentives are often essential as a contribution to fit out costs or
As leases come to an end, there is usually the need to plan and manage a new fitout project in the premises. This project may involve relocation to new premises or possibly the reworking of the existing layout if there has been a successful renegotiation. After all the challenges of the lease negotiations, many believe
The scenario often plays out – a new CEO wanting to cut costs and make his mark in an organisation looks around to find sacrificial lambs. Property and facilities services are often on top of the list (‘what do these groups contribute anyway?’). These corporate support teams are seldom appreciated for their efforts, despite being
There appears to be significant inertia in the property services outsourcing industry, with incumbents regularly being awarded contract extensions for a variety of reasons, even in situations where service standards are not being met. But, at some stage change will likely happen. And, after the long arduous process of ‘testing the market’ and the awarding
As part of the decision to outsource non-core property and facilities services, many rulings about the nature of the service delivery model are required. Service specifications, performance frameworks, team structures, contract governance models and service fee arrangement all receive attention during the decision-making process. But, often, the important decision regarding the co-location of the service
Facilities and property management services contracts have matured and evolved significantly over the past decade. In most situations, the outsourcing of facilities and property related services as non-core support functions underpinning primary business objectives is now the norm. The outsourcing rationale is generally undisputed. But commentary is still variable about the success or otherwise of