IS GOING LEAN A DREAM? Facilities managers face an ongoing paradox, constantly being asked to deliver on two conflicting portfolio objectives. First, to ensure there are short-term and flexible portfolio occupancy strategies which provide agility in the face of rapid business changes. Second, to also reduce occupancy costs – since real estate costs are inversely
Corporate real estate executives face an on-going paradox, constantly being asked to deliver on two conflicting portfolio objectives. First, reduce occupancy costs which – since real estate costs are inversely correlated to length of term of the lease – usually means committing to long-term leases or even ownership. Secondly, also ensure there are short-term and
Many in senior management have failed to be convinced that CRE has more value to add than managing real estate transactions and providing associated facility services. It is seldom recognised that well structured real estate strategies can provide strategic advantage. But why are CRE professionals struggling to build this credibility internally? CRE is not a
Facility managers need to be able to draw on a wide range of skills and experience in order to be able to adequately fulfill their mandate. Managing the tail of a lease is no exception. The principles behind make-good obligations are sound. The tenant leases generic premises from the landlord with standard finishes and services.
In an effort to drive down costs in recent years, businesses have climbed onto the outsourcing treadmill – until there was very little left. But company captains seeking to achieve competitive advantage, want more. The next step in attempting to dramatically reduce costs is off-shoring. Off-shoring can best be described as the relocating of business
Commercial lease transactions: The top 10 mistakes tenants make Everyone loves a big office lease transaction. Landlords and developers with vacancies in their trophy buildings get excited about the prospect of a new tenant. Agent and tenant representatives start short-listing the sports car they will buy with their commissions and payments. Architects and fit-out specialists
Despite all the value-added corporate performance models, cost still seems to be the key performance monitor in virtually all aspects of business, including property decisions. And a core skill requirement of all CRE executives is to be able to think and communicate in financial terms. The first challenge for the non-accountant CRE professional is to
To own or lease? The theory and the traps The subject of real estate ownership versus lease decision- making always leads to great debates. Most industry participants expect a definitive answer – either own or lease – to cover all situations. In reality, however, the answer is … it all depends. Needless to say, this
Understanding the real needs and objectives of a business strategy always seems to be a daunting task for a corporate real estate executive. These are continually changing because of market dictates. They are seldom clearly articulated in written form. And they are seldom stated in property terms. But the real challenge is translating these needs
Major lease transactions – the top 10 mistakes Everyone loves a nice big office lease transaction. Landlords and developers with vacancies in their trophy buildings get excited about the prospects of a new tenant. Agents and tenant representatives start short-listing the Porsche or sportscar they will buy with their commissions and payments. Architects and fit-out