BEYOND SQUARE METERS
An agile approach to Corporate Real Estate management
Economic slowdown , relentless competitive pressure , and complex demands from customers and staff are driving companies to introduce agile ways of working across their entire organizations to stay successful . Modern-day corporations not only face the need to adapt quickly to constantly changing market conditions but also to rising costs .
Managing companies ’ Real Estate requirements is an effective way to reduce costs , particularly when economic conditions are weak . However , during periods of volatility , organizational functions like Corporate Real Estate ( CRE ) can no longer be viewed simply as a means to tackle rising cost pressures .
As Millennials and Generation C enter the labor force , companies have to adapt to changing expectations about the workplace and introduce new work practices and environments . They need to take a more agile approach to Real Estate and treat CRE as a strategic function rather than merely an administrative one , if they are to meet emerging workforce demands .
Strategic CRE enables companies to become more agile and flexible in how they manage their workspaces , while boosting their ability to attract and retain talent . And greater agility pays off : goetzpartners has found that agile companies are on average 2.7 times more successful ( as measured by financial performance ) than their non-agile peers 1 .
That continues to be an important driver of CRE if done well . Large companies can reduce their total Real Estate bill by as much as 30 % by taking the following steps :
Optimizing their current footprint (“ Where to play ”): Companies can achieve significant cost benefits by reviewing their existing Real Estate footprint and aligning their locations with the company ’ s strategy .
Site optimization (“ How to win ”): Improve workplace utilization , increase desk sharing ratios , and leverage innovative , new space design concepts . Companies also benefit from optimized facility services and utility bills . goetzpartners ’ findings show that up to 30 % of the workspace in large companies is surplus to requirements .
Re-define the Real Estate organization : Create a mission for Real Estate to act as a strategic business partner and shape the overall organization and its processes . By streamlining Real Estate operations , companies can unlock additional value .
CRE CAN CUT REAL ESTATE BILLS BY UP TO 30 %
Planning horizons for real estate decisions are challenged by unpredictable market environments . An agile CRE approach helps companies to unlock value and better adapt to business volatility .
ARMIN RAFFALSKI Partner , goetzpartners
REAL ESTATE ORGANIZATION
̃ 30 %
THREE STEPS TO CUT REAL ESTATE COSTS USING CRE
Using working space more efficiently has traditionally been an effective short-term solution during times of rising cost pressures .
1 ) “ Organizational Agility as a Competitive Factor ”, goetzpartners , 2017 : www . goetzpartners . com / publications / publication / organizational-agility-as-a-competitive-factor