In real estate, Due Diligence requires companies to explore all options that
lower the total cost of occupancy. Sound like a good idea? It is. Sound like
it takes a lot of work and expertise? It does. And it’s not something you do
once. Due Diligence means constantly plotting a fluid real estate market in
relation to your organizations evolving needs. It’s an ongoing process for
which most corporate real estate departments lack the resources and
technology. That’s why a partnership with Outsource Offices can be so
valuable.
Total Cost of Occupancy
Today companies are focused on methodologies that measure total occupancy
cost. Typical real estate portfolio blend for most Fortune 2000 companies is
compromised of core and non-core real estate. But with new information
technologies driving how, when and where employees work, more and more
companies are reconsidering the fixed expense of traditional real estate
strategies and moving toward flex space.
The Migration to Flex Space
It is estimated that nearly three quarters of non-core office requirements
are in the sub 10,000 square feet range. Business Centers (or Executive
Office Suites) are popping up everywhere to meet the demand with short-long
term turn-key solutions that can include furniture, equipment, connectivity,
administrative staffing and more. In the process, companies are
restructuring typical fixed costs to variable thus improving control of
expenses and risk.
Frankly, the idea of non-fixed real estate scares the bowties off some
entrenched old-school organizations. But smart companies are jumping at flex
space as an opportunity to make real estate responsive to the needs of the
core business. To be agile. To make real estate more of a business tool,
less of an expense.
Outsource Offices
Outsourcing cyclical real estate demand to Outsource Offices provides better
control of risk and expense. We free corporate real estate executives of the
burdens of Due Diligence and provide them with timely, focused information
to make smart decisions.
The Fixed Real Estate Model / Cost Saving Risk Management tool illustrates how other companies are embracing flex space alternatives into their overall strategy of corporate real estate portfolio management. It’s easy to see the competitive advantages of having increased lease flexibility to embrace
ever-changing workforce demographics and market dynamics.
Partnering with Outsource Offices gives you instant access to thousands of
flex space options in prime locations around the world. Put us to work for
you and let us do your Due Diligence.
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