Questions for the Corporate Real Estate Director

by CoyDavidson on October 23, 2010

The “Top Five” Questions that Corporate Real Estate Directors are being asked by Senior Management

CRE executives are being challenged by senior management like never before to reduce occupancy costs and contribute to bottom line savings.

The key for the CRE team will be to access, source and deploy a solution or solutions that calculate the components that comprise total costs of occupancy and measure the financial performance of all owned and leased facilities.

As importantly, these solutions will help them answer the “Top Five” questions that are being asked by senior management in regard to their corporate real estate portfolio:

1)  What is our “Total Cost of Occupancy” Per Square Foot?

  • Employee Per Square Foot
  • Electricity Cost Per Square Foot
  • Data Processing/IT Cost Per Site
  • Cost Per Site
  • Cost Per Full Time Equivalent
  • Market Comps by Location

2)  What are our Future Rent Obligations?

3)  What is our Space Utilization?

  • Shadow Space
  • Total Occupancy Per Net Sales
  • Occupancy Rate
  • Churn by Location
  • Square Foot Allocations

4)  Can you produce Dashboards and Real Time Information?

  • Project Tracking
  • Market Comps by Location
  • Financial Modeling
  • Budget Forecasting

5)  What are we doing to move our portfolio toward environmental sustainability?

Source: This post is and excerpt from the Corporate Real Estate Benchmarking Whitepaper, courtesy of Larry Simpson, Principal  and Founder of CRE3 Consulting. More information is available on his blog CRE3 Forum.

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