How Corp Real Estate Professionals Support the Company’s RE Portfolio and Business Strategies
What is the role of the Corporate Real Estate professional? How can they assist a company’s leaders to lower P&L costs, create an efficient and engaging workplace environment, and provide the necessary portfolio strategies for the company’s real estate assets?
The CRE professional can lead change by partnering with key stakeholders to play a significant role in the stakeholder management and effectiveness of the company’s organization. Aligning department and company strategies will leverage the technical knowledge of the CRE expert and allow them to utilize their business acumen to communicate effectively and transparently with the company’s executives and their respective teams, as well as key vendors, and contractors. Developing relationships with department heads utilize collaborative, cross-functional, and strategic relationships to facilitate the accomplishment of enterprise-level goals. Working with these key stakeholders helps the CRE expert to prepare the company’s real estate goals and devise a budget to meet the objectives of those critical goals. That CRE expert leads a team of HR, IT, Security, Finance, Supply chain to do the following:
Being held accountable for the operational plan, budget, finance, and corporate real estate activities of the company.
Developing and ensuring execution of a multi-year plan for the Company’s real estate portfolio that is in alignment with their goals.
Leading the development of capital expenditure plans, budgets, and forecasts, including cost efficiency efforts in partnership with finance, and operations leaders.
Let’s investigate an example of how this stakeholder partnership could work:
XYZ manufacturing company has historically had their CRE expert report to the supply chain leader in order to ensure that the CRE strategy is aligned to supply chain concerns and strategies.
Because investment decisions relating to manufacturing operations can significantly impact a company’s P&L, perhaps it is a better idea that there could be a team of stakeholders (noted above) working together to effectively make decisions regarding all of these company aspects. That team could also consist of the Supply chain or Procurement), and the individuals of CRE team that specialize in transactions, facilities, construction management, and EH&S. Then, why not have them report directly to a Chief HR Officer to ensure that this team approach has combined all pertinent factors for consideration regarding all of the costs that can impact the company’s real estate portfolio.
Please check back for our upcoming blog, Part 3 of this Strategy: What are the key skills that a corporate Real Estate expert can bring to the company’s leaders. Also, in case you missed it, be sure to read Part 1, How a Real Estate Team Supports a Company’s Business Strategies.
Reach out to Corporate RE Advisory Services to discuss how they can be your partner with all of your company’s real estate assets needs.
