Key Skills that a Corporate RE Expert Can Bring to the Company’s Leaders
When companies use a CRE expert to work effectively to align CRE strategies with the organization’s business strategies, it can have a significant impact on the bottom line. Because of the long-term nature of real estate, it is sometimes tempting to allow CRE strategy to drive the business, rather than the other way around. The role real estate plays in its core businesses and the type of real estate a company uses (office, industrial, manufacturing, warehousing, retail, etc.) in part dictate which technical real estate services a company will utilize. Additional factors, including an organization’s business cycle, the nature of its supply chain and the way the company financially positions its real estate (owned versus leased) will also significantly impact the company’s approach to, and the risks associated with, their Corporate RE portfolio and the business operations.
So, what are the CRE professional’s core skills?
Soft Skills:
■ Communications skills ■ Leadership ■ Vendor and Contract management ■ Relationship management ■ Corporate Culture & Workplace ■ Logistics & Supply Chain ■ Advanced Analytics ■ Return to Workplace management
Technical Skills:
■ Asset and portfolio strategy ■ Workplace strategy ■ Financial structuring & asset monetization ■ Site selection ■ Asset acquisition and disposition ■ Leading implementation of lean processes and best practices ■Project management ■ Property and Facilities management ■ Corporate services ■ Lease property administration
The One Constant is Change
Have the right mindset
Measure, measure, measure
Bend, don’t break
Learn from your mistakes
Be the change
Further, companies may need to reconsider that in a post-pandemic return to work environment, what is best for the company? Should they maintain the CRE role in-house OR review the possibility to outsource the function?
Reasons to Keep In-House:
• CRE functions are critical or even core to the business • Potential competitive advantages through knowledge transfer or Increased business risk if the company loses institutional knowledge • In-house skill-set exists can be leveraged with other business opportunities • CRE requirements are static and predictable • Cost to monitor & administer the outsourcing is prohibitive
Reasons to Consider Outsourcing:
• CRE function is non-core and/or low risk to the business • There will be many cost advantages to outsourcing • Limited or no opportunity for learning transfer across the business • The CRE skill-set is not available in-house • Cost of monitoring & administering to an outsourcing partner is low • Service provider/partner delivers better service levels • CRE expertise demand by the company ebbs and flows • The company cannot utilize a CRE skillset full-time, especially when the CRE expert is highly specialized • Significant improvements in process and technology are necessary, desired, and not available In-house
As executives consider what they want from their CRE expert, they should consider how they can integrate their CRE team into the organization’s strategic and tactical decision-making processes in order to facilitate alignment and provide best-in-class management for the entire real estate portfolio.
In conclusion, these are the key points of how CRE professionals support a company’s real estate portfolio:
By defining exactly what the role is of the Corporate RE professional.
By proving how can they assist a company’s leaders to lower P&L costs to create an efficient and engaging workplace environment.
By utilizing the key skills that CRE professionals bring to the table to provide the necessary portfolio strategies for the company’s real estate assets.
Now is the time to reach out to Corporate RE Advisory Services. Let us discuss how to be your partner with the strategic portfolio optimization, planning and implementing the company’s return to the workplace, or for any of your real estate asset needs. Please reach out to us via the website: https://www.corporaterealestateadvisoryservices.com/
Be sure to read Part 1 “How a Real Estate Team Supports a Company’s Business Strategies” and Part 2 “How Corp Real Estate Professionals Support the Company’s RE Portfolio and Business Strategies” of this blog series.
