Category Archives: Property Strategy / Portfolio

Lease: time to cut costs?

Need to make occupancy cost savings? During the business planning cycle, often the occupancy costs of leases are identified as excessive, needing to be reduced to maintain financial sustainability. A cost saving review will succeed best if there is a systematic approach and hard decisions able to be made. Each location and lease agreement needs

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Portfolio planning in the connected age

Portfolio planning in the connected age

Is technology driving a move towards more proactive portfolio planning? The nature of property, with long decision gestation periods, needing significant capital expenditure and inflexible leasing arrangements, means portfolio planning is seldom done proactively. It is the norm for portfolio decisions to be driven by events such as lease expiry dates, business mergers and sudden

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Own Versus Lease – The Debate Continues

Own Versus Lease

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

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Location Decision Dilemmas

Business processes have changed. Today, business is conducted differently from the way it was conducted five years ago and the way business is conducted today is unrecognisable compared to business models from the last decade. But, some aspects of the decision- making processes, including corporate accommodation decisions, appear to have changed little. As always, location

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New lease reporting challenges for facilities managers

Facilities managers have a diverse range of ongoing challenges to manage. These include service performance standards, lease renewals, relocations and consolidations, workplace churn, green initiatives, new premises roll-out, and various capital projects. Now the spectre of new complex lease reporting standards is on the horizon. Although most facilities managers understand the necessity to stay in

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Portfolio Objectives- The link to Business Strategy

Understanding the real needs and objectives of a business strategy is a daunting task for facilities managers – they seem to change continually because of market dictates, and are seldom clearly articulated in written form or stated in facilities or property terms. But the facilities team needs to deliver. The real challenge is translating business

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Stop the world – I want to get off!

To become a more effective facility manager, accept that doing everything that comes along without priority is not OK. To function without planning does not provide optimal outcomes. There is no need to be over-extended – all it takes is planning, having processes and realising it is acceptable to say no and to focus on

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Surviving in a tough economic climate

The challenge of ensuring future stability is to find tactics to survive all those ‘legacy decisions’ based on the never-ending growth scenarios of the last year, which involved commitments of too much space at ridiculously high rental levels. What are the priorities to make sure your company survives the downturn over the next few years

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Space invaders: Where has all our accommodation gone?

Space assessments are based on functional requirements, work relationships, types of work – autonomous or collaborative – and team spaces. Meeting rooms and break-out spaces, informal lounges, kitchens, coffee machines and fruit bowls are all there. The accommodation quantum projected to the planned relocation date – maybe two or three years for construction – is

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Data centre decisions are property decisions

Data centres seem to have come full circle. The 1980s saw the emergence of large data centres, generally remotely located from the main corporate office and filled with enormous mainframe computers. With the emergence of the PC and small x86 servers, data centres tended to migrate back to the main office in smaller, specially air-conditioned

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