Every company we talk to is looking for ways to reduce their facility costs.  At a minimum they want to better align facility and other administrative costs with their current revenue structure.  There is nothing new here, but CEO’s everywhere are challenging their CFO’s to make things happen.

Here are three specific things you can do right now to reduce facility operating costs.

Years ago a real estate developer friend called and asked if I could help him sell an industrial project he was developing in a Southern state capital city.  He had gotten the project started but was having difficulty securing leasing and the project stalled.  He concluded that selling the property partially developed was his best exit opportunity.

Do more with less is every company’s mantra in a challenging economy.  Yes, but how?  

Partnering can offer an amazingly effective solution.  By combining in-house knowledge of strategy and culture with outside market-tested Corporate Real Estate (CRE) expertise, Partnering can deliver a significant ROI …. and fast.  

To create a successful CRE partnering arrangement, you must:

At a recent luncheon in Atlanta, Marci Rossell, economist and former co-host of CNBC’s SquawkBox, offered an interesting explanation as to why the US economy appears so slow to recover from the 2008/2009 “Great Recession”.  Speaking to a joint session of CREW and CoreNet members and guests, Ms. Rossell chalked up our economy’s performance to a tale of two recoveries.

Effective corporate real estate management uses leverage to maximize value.  A seasoned, professional real estate consultant creates leverage by using experience, know-how, and time-tested processes.  The following story wonderfully illustrates this concept and is presented with the permission of Mark Fitzgerald.

“Moving Pianos”

Executing a multi-facility “roll-out” program can seem to be daunting.  However, by clearly defining goals and parame­ters, this assignment can be streamlined to a manageable, efficient process.  Careful planning and disciplined plan implementation are the keys to success.  Incorporating the following elements should yield positive, measurable results:

You are a corporate real estate executive or business owner and are about to select a broker to aid you with a specific assignment: selling one of your firm’s surplus properties.

Now What?

How do you assure your superiors, your shareholders and yourself that you will receive optimum results and the best
service that your broker has to offer? The answer is simple: Ask the right questions and require your broker to perform certain crucial tasks.

Questions to Ask –

What is a Lease Audit?

Lease audits (also commonly referred to as Lease Reviews, Operating Expense Reviews, CAM audits, and Escalation Expense Reviews) are detailed reviews for a Tenant of a Landlord’s periodic expense billings to determine whether the tenant is being charged properly for its share of building oper­ating expenses. 

Why are Lease Audits needed?

Evaluate these five characteristics when choosing a CRE services provider to support your organization.

Many costs necessary to operate commercial properties are visible but many potentially significant costs are nearly invisible. Even though not readily seen, these costs are very real.

Following is a discussion of these “invisible” costs and three proven techniques to drive them from your financial results. 

Problems You Can See