Real Estate Planning In An Uncertain Environment: Be Flexible And Involved
August 05, 2011
Strategic planning in corporate real estate is difficult under ‘normal’ economic periods but in these uncertain times, it’s even harder to get it right. Experience shows that by applying these strategies the process will be smoother and the results better:
Involve key functions early in the process. What do the IT, Human Resources, Finance, Manufacturing and Sales Depts need from the next generation of space planning? What worked in the last round? Giving cross-functional team members an early opportunity to understand and provide input on the real estate implications of potential decisions will minimize surprises later in the process and ensure a higher level of buy-in.
Expand scenario planning to include different economic scenarios. How many of you planned for the 08 recession to have a dramatic effect as it did? An effective planning model will put in place real-estate strategies that can be quickly implemented to support a number of different economic realities.
Initiate site selection exercises earlier in the planning cycle knowing that a lot of work will have to be discarded as location options are considered and eliminated.
Explore shorter-term leases to enable shorter-term adjustments to support business conditions.
Structure exit plans in all transactions – things change all too rapidly now.
Structure scalability into each commitment; if you have to expand or contract, it’s good to have options built in to the lease.
For more ideas and thought leadership regarding your space commitments call us.
< Return to News