How a Real Estate Team Supports a Company’s Business Strategies

What is the role of the Corporate RE 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?

In the world of real estate, occupiers, landlords, and property investors are now beginning to understand that the Corporate Real Estate (CRE) function is a necessity in a post-Covid-19 era. The right CRE professional can partner with their company’s senior management and key stakeholders to develop and implement programs that support and help drive core business strategies and mitigate risks.

So, let’s investigate the role that CRE plays in the company by asking these questions:

• What scope of CRE services does the organization require and for how long?

• How should the company ensure the CRE strategy is aligned to its current and future business strategies?

• To whom should the CRE role work with inside the company to best integrate into the organization? CFO, COO, Chief HR Officer?

To provide a frame of reference for answering these questions, please read what is outlined below:

What is the role of corporate real estate in the company?

Depending upon the nature of the company’s core business(es), CRE can play many different roles. Before defining the current or ideal role CRE plays, the company should first identify what it is specifically that CRE contributes to the core business(es). Does the corporate real estate professional:

• enable employees’ best work environment and maximize productivity

• contribute to corporate culture and provide a positive impact for recruiting and retention efforts

• reinforce and reflect the brand identity

• contribute to the company’s “bottom line”

• provide a sustainable and energy-efficient workplace

• offer CRE strategies to support or drive the company’s business objectives

• facilitate the supply chain function

Next, company executives need to consider what they want from their CRE professional and consider how they can integrate CRE into the organization’s strategic and tactical decision-making processes in order to facilitate alignment.

And then, company leaders also need to decide where the CRE expert will report within an organization because their input will impact their effectiveness: Should they report to CFO if the decisions relate to operating expense and capital allocation? Or to the Chief HR leader if the organization’s corporate culture, innovation, and entrepreneurialism of the CRE function are important to the workplace environment. Or, to the COO if operational influences are where CRE will make the most impact.

In conclusion, as the company determines how much experience is required from a CRE professional, it should give thought to these questions as it seeks CRE guidance and thought leadership in all matters related to its real estate and facilities functions:

1. How many annual business cycles, and economic and real estate market cycles, has the CRE expert lived through?

2. Does that CRE expert demonstrate the ability to anticipate and flex with unexpected business and market dynamics?

3. Will the CRE leader be given a seat at the table with the company’s leaders to utilize their unique technical skills?

   Here are key skills of a CRE expert:

   • Asset/portfolio strategy

   • Workplace strategy

   • Financial structuring/asset monetization

   • Site selection  and real estate asset acquisition/disposition

   • TI Project management

   • Facilities management

   • Corporate asset lease and/or owned property administration expertise

Be sure to read our next blog for Part 2 of this strategy, “How Corp Real Estate Professionals Support the Company’s RE Portfolio and Business Strategies” and Part 3, “Key Skills that a Corporate RE Expert Can Bring to the Company’s Leaders”. In the meantime, contact Corporate RE Advisory Services to discuss how they can be your partner with all of your real estate assets needs.