SR Inc. to Convene Corporate/Commercial Real Estate Executives and Drive an Industry Closer to Greater Sustainability

November 12, 2011

The Sustainability Roundtable, Inc. (SR Inc.), the for-profit, shared cost research and consulting firm will bring together corporate/commercial real estate executives and sustainability professionals who represent over 60 member-client organizations at SR Inc.’s Third Annual Summit entitled, “The Change Driving Sustainability” on November 30th and December 1st at the St. Regis Hotel in Washington D.C.

This invitation only two-day event will feature: sustainability excellence award winners; presentations and case studies of SR Inc.’s 2011 Research Program; panel discussions with Federal agency representatives; and, facilitated sessions to develop SR Inc.’s 2012 Research Program.

Management Best Practice Sessions will include:

Portfolio-wide Sustainability Strategies: What strategies do Real Estate Executives use to resource and create sustainable value. (Includes Innovative Finance for Energy Efficiency)

Benchmarking Sustainability: What sustainability KPIs should Leaders adopt and what are the relevant performance benchmarks.

Sustainable Leased Space: How Leaders move to more sustainable leased space? How Tenants and Landlords systematically implement green leases and what provisions in RFPs, LOIs and Leases are used.

Alternative Workplace Strategies: What AWS strategies are successfully adopted to increase productivity and how can landlord’s best respond.

Working with the Federal Government: What are the best sustainability resources available within the Federal Government and how can Real Estate Executives partner with them.

The collaboration of SR Inc.’s member-clients supported by SR Inc.’s analysts, researchers, consultants and advisors is rapidly driving the real estate industry toward greater sustainability with breakthrough management best practices about ‘what works’ to apply the principles of sustainable real estate strategies across a portfolio that reduce operating expenses/occupancy costs; enhance enterprise/asset value; and align with organizations’ commitment to the environment.

If you would like to learn more about SR Inc.’s Annual Summit III or how SR Inc.’s resources and implementation guidance could help you drive your organization closer to sustainability, contact SR Inc.’s Larry Simpson, Executive Vice President – Advisory Services at larrysimpson@sustainround.com.

(The author is Larry Simpson, Executive Vice President, Advisory Services, Sustainability Roundtable, Inc. Additional posts can be found in SR Inc.’s Forum found at http://www.sustainround.com/aboutst/blog/)

 


Looking Back at the Top CRE3 Forum Posts in 2010

December 20, 2010

As 2010 draws to a close we want to provide a list of CRE3 Forum’s Top Posts of the year based on page views of our readers.

As you will see they fall into a few key themes of:

  • The impact corporate real estate has on company financial performance
  • Move to sustainability being integrated into CRE strategy
  • Role information systems play to support CRE department objectives

We hope you will take a look at the past posts and use some of the highlighted “best practices” as you prepare your department to support your organization in 2011 and beyond.

The Impact of Real Estate on Corporate Assets and Financial Performance

“The More Things Change in the CRE Industry…” Evolving Trends in the Coming Decade

“GREEN is the New BLACK”…Sustainability Comes to Corporate Real Estate

The Convergence in Corporate Real Estate

How Corporate Real Estate Can Boost Your Company’s Share Price

Solutions to Manage an International Corporate Real Estate Portfolio

Leased corporate real estate portfolios to be overhauled by new accounting standards

Tomorrow’s ‘Workplace of the future’ Impact on Today’s CRE Strategy

Budgeting Season Fodder – Preparing Your CRE Portfolio and Your Department for Performance Measurement in 2011

2010 Midterm Election Results Impact on the Economy and Corporate Real Estate

“You Don’t Pay For What You Don’t Use” — Strategies to address the efficiency, economics and environmental sustainability of your real estate portfolio

Corporate Real Estate Benchmarking White Paper NOW AVAILABLE

Are You Ready? The Role of Information Systems to Develop a CRE Strategy and Support Your Organization

“CRE Information System Tools are Cool but Data Integrity and Business Processes Rule”

Best wishes for a joyous holiday season and the hope for a personally and professionally prosperous New Year!!!


“The More Things Change in the CRE Industry…” Evolving Trends in the Coming Decade

December 9, 2010

As the first decade in the 21st century draws to a close the “CRE3 Forum” offers some insight on trends and changes the corporate real estate industry might anticipate in the coming decade.

While it is likely many of the cited dynamics will occur, some may not and others will emerge but, the most important thing to consider for you as a CRE professional is that change in our industry will happen and it’s your job and responsibility to find out how it will affect your organization. It is more likely there will be a convergence of trends creating complex issues that will impact your role to deliver efficient facilities in the right place at the right time at the right cost.

The companies of which you are employed are counting on you to be the subject matter expert on corporate real estate ready to anticipate and act on the inevitable changes associated with occupancy costs, sustainability and technology among others that are coming in the next few years. Read the rest of this entry »


Solutions to Manage an International Corporate Real Estate Portfolio

November 11, 2010

 

The challenges in managing an international corporate real estate portfolio is much more difficult than to mitigate disparities of multiple languages, currencies and measurements.

 

In the past, few companies had international teams to develop effective strategies, create standards and employ consistent work processes across all property types and all business units.

 

Organizations with locations worldwide would often have corporate real estate resources available but, more often would rely on the foreign business units themselves to negotiate and coordinate CRE decisions. Very often professionals given the authority to make decisions were sales directors, logistics managers, human resource coordinators or the business leaders themselves.

 

Many of these professionals did not possess the requisite real estate expertise as they already had a full-time role on which their career advancements would be judged so real estate and facilities was not given the priority it deserved. Sometimes the tactical decisions were made without strategy and proved inefficient at best, costly at worst.

 

Expanding manufacturing companies entering new markets and navigating transitional economies often had to evaluate joint ventures, consortiums or establish their own facilities. Securing office space and lease vs. buy decisions were driven by cost, flexibility and corporate policy.

 

Some of the inherent challenges include:

  • unpredictable time for permitting and approvals – different countries have differing levels of approval processes
  • bureaucratic inconsistencies – difficult to identify officials responsible in administering laws governing the operation and ownership of facilities
  • government/legal uncertainty – interpretation and inconsistency of laws/legislation and lack of coordination between authorities
  • animosity toward foreign investment – varying levels of acceptance of civil servants to welcome foreign companies to operate within their country
  • unsatisfactory transportation and telecommunications infrastructure – critical to the success of getting materials to/from market and transferring data are acceptable modes of transport, internet and telephony
  • differences with property rights and real estate law – privatization of land, reform and ownership present unique challenges that require substantial internal/external counsel to determine rights and privileges

Today, managing global portfolios is made easier based on several factors:

 

Sarbanes-Oxley ComplianceWith the passage of the Sarbanes-Oxley Act in 2002, US-based public corporations and the companies that support them are now held to a higher standard of accountability. Compliance requires that automated or manual CRE procedures must be documented and consistently repeatable across multiple business units to reduce the number of different business processes being monitored. An information system provide a secure environment to document every transaction and process producing more reliable information and improves the accuracy of the audit trail.

 

Information Systems – Enterprise-wide information systems help CRE professionals become more productive and knowledge-based decision support more effective. Systems can manage transaction risks, facilitate work requests and perform property services due to more complete and accurate information. A team of professionals located in one country with counterparts located around the globe can utilize a common information platform enabling enterprises to operate more efficiently, responsively and profitably. Systems enable roll up reporting to aggregate occupancy cost information, calculate future rent obligations and manage environmental sustainability initiatives.

 

Use of Outsourced Professionals – The emergence of truly international service providers allow global companies to align with real estate service providers who can provide brokerage, tenant representation, and construction/project management to develop and execute strategy and establish global management agreements. While compensation models pose another set of challenges, the benefits of accessing a global network with local market knowledge are irreplaceable.

 

The good news is that the ability to overcome challenges to managing large, complex portfolios are made much easier with a combination of compliance, technology and people.

  

What solutions have you found to be effective in managing a global corporate real estate portfolio?