Competitive differentiators that right-size portfolios across multiple asset classes
Executive Summary
In the ever-shifting world of corporate real estate, maintaining an efficient, cost-effective portfolio is an intricate balance between understanding present-day needs and their associated costs, while anticipating how those will change in the future. For many organizations (regional to global), keeping this balance becomes a complex undertaking rife with unnecessarily high costs and missed opportunities to maximize profitability.
Our Approach
Navigating the complexities of corporate real estate portfolio management demands a multi-faceted, data-backed, strategy-driven approach. It involves understanding the nuances of an organization’s unique portfolio. The terms of the lease, utility costs, vendor management, layout efficiency, internal asset management—all of these and more must be meticulously measured to achieve the best possible facilities cost-to-revenue ratio for any particular asset or portfolio.
By leveraging DEODATE's holistic expertise, our clients have improved these ratios by 10-25%. These gains often equal seven-figure annual cost savings.
Value Proposition
Our commitment to our clients' success has made us a trusted partner in portfolio management. By engaging with us, you are investing in a partnership that promises not only operational efficiency and cost savings but also strategic foresight and adaptability.
Our clients, on average, achieve savings (or revenue increase) of $10-$20 for every dollar spent with DEODATE. For larger facilities, this return on investment can be even higher.
Holistic Efficiency
Our comprehensive approach scrutinizes every aspect of your real estate portfolio. While some firms only look at typical, surface-level costs, our team at DEODATE uncovers opportunities to reduce costs, boost efficiency and production, and achieve a total cost-to-revenue ratio that helps you achieve your financial goals while helping your employees, investors, and your own clients achieve theirs.
Areas for Achieving the Highest ROI in Portfolio Optimization
Utility costs: This could involve renegotiating contracts with suppliers, improving the efficiency of HVAC systems, or investing in energy-saving technologies such as full and hybrid solar systems, LED lighting or high-efficiency machinery.
Vendors/Maintenance: We analyze your current contracts, compare them with market rates, and negotiate better terms if possible.
Lease management: Proper lease administration can avoid unnecessary costs and legal disputes. This includes being keenly aware of current market rates to make sure you're not overpaying, knowing when your landlord's books can be reviewed, and what to look for to ensure asset pricing is on par with or below market.
Lease renegotiation/benchmarking: Our services extend beyond analysis and advice; we step in when necessary to renegotiate leases and facilitate lease exits. We also maintain a continuous review of performance benchmarks, enabling our clients to make informed decisions about where to add or remove locations from their portfolios.
Physical space layout/production: By analyzing your workflow and space utilization, we can recommend changes that improve efficiency, increase production, and reduce costs. This could involve relocating certain departments or equipment, redesigning workspaces, or relocating to a more suitable property. Our utilization analysis may also identify excess space, which can be repositioned via sublease or renegotiation of lease for rightsizing of operating facility footprints.
Internal management structure: It's not uncommon for organizations to be inefficient in how they manage their assets. A department might be overstaffed or lack the right skills to efficiently handle certain tasks. Our work with multiple firms and their respective corporate real estate and facilities departments has granted our team a unique set of national best practices and performance benchmarks. These efficiencies can be applied to your current management structure and suggest proven improvements that can lead to more effective operations and significant cost savings.
Asset debt structure and management: Volatile debt markets create for potentially dangerous scenarios for operating portfolios. Proactive, wide-canvassed, and creative debt vehicle management is essential to avoid unexpected speedbumps in asset debt structuring. Our internal team of analysts monitors multiple asset-class-specific debts to ensure honest pricing from debt providers across multiple vehicles.
Conclusion
In an increasingly complex commercial real estate landscape, a strategic and proactive approach to portfolio management is not just a convenience, it’s a necessity.
We've successfully navigated countless clients on hundreds of engagements toward achieving substantial cost savings and improved efficiencies through forward-thinking approaches to portfolio optimization. This allows our clients to focus on their core business operations with greater peace of mind.
Reach out to us and learn more about how we can help optimize your commercial real estate portfolio, improve your cost-to-revenue ratio, enhance operational efficiency, and better prepare your organization for a more prosperous future.