Debating the importance of separating the definitions of corporate real estate and facilities management. Two of the most misunderstood and misused concepts in the property industry are ‘Corporate Real Estate’ and ‘Facility Management’. This is particularly true if the latter term is prefaced with the word strategic. This confusion is further complicated by the use
Current wisdom in the CRE industry is that no relocation, corporate merger, workplace fit out or outsourcing arrangement can take place successfully without a well-constructed change management program. Previously all occurred successfully as part of normal business processes. So what is new? The simple answer is: the business landscape has changed. In the past, companies
Green buildings seem to be on everyone’s agenda and this is increasingly manifested in some form of green lease between owners and tenants. But what is the commerce and issues of these leases? For completed buildings with proven performance outcomes, this is not too problematic. But it is not so easy for pre-commitment lease agreements
In the boom and bust markets of Perth and Brisbane, industry activity has been bolstered in recent years by speculative developments. However the current financial hiatus is likely to bring reality back into even these markets and total or substantial pre-commitments will be required for any project to come out of the ground. On the
In many companies and organisations where property is an operating asset there is little effort spent in planning a strategy. Property decisions just seem to happen – the catalyst usually being an event such as a lease expiry, merger or the arrival of a newly appointed CEO. Even the definition of property is often unclear
With business sentiment strengthening, Australia’s office market is primed for change. Property Australia asked industry experts for their views on what the future holds. Who currently holds the balance of power between tenants and landlords? Melbourne is currently rather balanced and, maybe slightly, landlords have the upper hand for big space. In Sydney, landlords like
Extravagant space decisions made prior to the GFC, as well as merger activities, have left some organisations with excessive accommodation footprints. In the current economic climate, the development of strategies to consolidate and reduce recurrent lease commitment expenditure has become a focus for many businesses. This requires the preparation of a business case to support
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
Investment returns in property portfolios controlled by REITs and property investment funds are underpinned by existing lease agreements and on-going tenant demand patterns. Future demand patterns of tenants, manifested by the willingness and ability to pay rental, will determine future income growth and ultimately property asset values. Although some investment analysts analyse the underlying business