Real Estate Strategy

Real estate represents a major investment to any organisation. It is therefore essential that the strategy supports the business goals and objectives. Businesses that operate without a strategy tend to be impeded by unforeseen lease events and disruptive landlord actions.

We can tailor our ‘diagnostic toolkits’ to analyse the real estate data that matters. Ensuring that a portfolio not only reflects the needs of the business but enhances it. Importantly, the outcome of the ‘health-check’ review, also provides the visibility to manage lease events and the foresight to identify value creation within the portfolio. From this position, the business can take long-term investment and capacity decisions aligned to the business plan, not as a consequence of real estate failure.

As a starting point, we can run a ‘light-touch’ portfolio health-check for clients and are happy to work towards either contingent fees or a fixed fee proposal.

Many businesses see the real estate portfolio as an overhead or a liability, at Director Group we see it differently.

We provide:

  • Portfolio health-check programmes (align footprint to current and future business need)
  • Business capacity planning – scenario modelling and costing
  • Investment project appraisals and approvals
  • Estate rationalisation, cost and efficiency reviews
  • Estate and asset disposal
  • Mergers and acquisition due diligence support and combined estate rationalisation strategies
  • Oversight of future transaction pipeline and proactive estate management

 

“Without data you are just another person with an opinion” – Marc Edwards of Virginia Tech

Global Real Estate Strategy

For many rapidly expanding companies, coping with the effective management of the real estate portfolio is often considered a secondary or non-strategic activity. That is, until the scale and diversity of a global estate becomes a significant cost, or it starts to affect the agility and performance of the company. At this stage it quickly starts to inhibit growth, reduce flexibility and above all becomes an administrative and strategic burden.

We were approached by one such global organisation and asked to work with them to gather all the available and hitherto unavailable data. This enabled us to align the real estate and workplace strategy, to business case and budget.

Using our unique analytical toolkit, we were able to present the data against internal and market benchmarks. It soon became obvious to the client that far from inhibiting the business growth, if managed strategically and as part of the business, the real estate portfolio could create opportunities to reduce operating costs and liability.

Acting across four continents, we designed and implemented a global strategy that provided visibility and oversight of future costs, capacity and location decisions. We are now managing an infrastructure that enables the company to realise its ambition of rapid global growth into existing and new territories by:

  • Aligning and delivering workplace and location strategies with the business strategy
  • Undertaking workplace reviews with ‘in country’ leadership teams
  • Providing support to in house teams on leasing strategy and leading on commercial negotiations
  • Appointing and managing professional and technical teams to deliver workplace fit out
  • Helping drive alignment of local demands and needs with global and corporate requirements through creating standards and processes

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