One of the most prevailing discussion in 2014 about Corporate Real Estate Management (CREM) was around adding value.
How does CREM add value to the overall business result?
Many CRE manager has asked hemself/herself this question and probably has been able to give some common sense and/or pragmatic solutions.
However, these may not have been as structured and as complete as one might have wanted. And that is what is needed to really open-up the discussion with the executive management team and be able to discuss the impact of housing on a par with them.
There has been (academic) research by several very knowledgeable experts in this specific field. I have used research that in my view had the most complete set of areas where CREM can add value (*). Originally this research shows 9 values and I have (based on my own experience) added a tenth value: Implement Corporate Social Responsibility.
Below I have depicted the 10 Value Drivers for CREM
Underneath the picture are sliders for each of these 10 value drivers where you can learn more about my view on how this driver can add value to your organization's CRE department and what other functions CREM needs to team with. Having this on-top-of-mind is crucial to enable a meaningful collaboration between CRE and the company management and between CREM and their peers in the organization. All geared towards valuing CRE as an integral part of the organization's business that contributes actively, measurably and meaningfully to the business result.
Improve Finance Position
|Improvement of possibilities to get real estate financed by external parties, e.g. by regarding real estate as an asset to improve the overall finance position of the organization or an assessment of the (future) marketability of the building. |
Sub-leasing space or renting-out meeting rooms in a multi-tenant building are examples. But of course sale & lease-back also can be a strong driver.
For this Value driver CRE works closely with Finance and Procurement.
(*) Source: Van der Voordt, D.J.M., Van der Zwart, J. (2011), Value-Based design and management of Hospital Buildings. Conference paper MISBE, Management and Innovation for a Sustainable Built Environment, Amsterdam, 20-23 June 2011