The traditional approach of corporate real estate strategy involved short-term results and cost minimization, but in the modern era, it looks at a long-term strategy that adds value to the business. The changing business environments and outward pressures from the market have led the companies to indulge more in the non-core operations.

1. usreeb - Corporate Real Estate Strategies for Businesses
A lot of companies believe that corporate real estate strategies are a method to use cost-
reduction strategies. Since the real estate accounts for the second or third largest
expenditure in a business, cost-cutting strategies by using corporate real estate strategies
seem like a satisfactory approach. By using this approach, there is increased productivity in
the business that is valuable to the business. It is extremely important to consider the
impacts of corporate real estate strategies on fulfilling the corporate goals instead of
tracking the efficiency of the operation.
Corporate real estate strategies
In various organizations, corporate real estate management has been based on transactions
for many years that are focused on reducing the costs in the short term. However, in reality,
the strategies involved in corporate real estate management is much more than that.
The traditional approach of corporate real estate strategy involved short-term results and
cost minimization, but in the modern era, it looks at a long-term strategy that adds value to
the business. The changing business environments and outward pressures from the market
have led the companies to indulge more in the non-core operations.
The returns that a business receives from the supporting act may be lesser than the returns
obtained from the core activities of the business, but these supporting activities provide
other forms of value to the business and help the business to grow. The corporate real
estate strategy is such a supporting activity that is valuable to the business.
Due to the rapid shift in the various business needs and technological capabilities, the
corporate real estate strategies are expected to deliver a better and a faster value than
before. The corporate real estate strategy should focus on implementing strategies that
would enhance the employee workplace experience and that are also cost-efficient in
nature.
Promoting sales and marketing
The corporate real estate can add great value by choosing those client-friendly locations for
the business that would attract the most number of customers, investors, employees, other
stakeholders to that organization for certain business activities or even recruitment. By
promoting the sales and marketing of the corporate real estate, there would definitely be a
value addition to the business. The design of the building may also support the business
value and the company branding. This strategy is widely used by a lot of corporate real
estate businesses.

2. Increasing the asset value
This corporate real estate strategy states that the properties in the business should be
viewed as capital assets, and these assets should be optimized and managed to grow and
thereby adding a significant financial contribution to the entire organization. The main
objective of this strategy is to maximize the value of a property portfolio that is currently in
use, select desirable locations, and also redeveloping obsolete properties. By increasing the
asset value of the business would, in turn, add value to the business. This is the most
common strategy that is used by corporate real estate businesses.
Delving into innovation
An approach that would lead to innovative thinking is the main goal. The emphasis on
increasing innovation shall not be the aim of the corporate real estate business, but rather
the aim should be on the facilities that would support and encourage innovative thinking.
Space inhibitors play a major role in innovative thinking. These space inhibitors apply their
innovative thinking and plan spaces by providing insights into the size, type, and workplace
design that creates a unique and inspiring working atmosphere for the organization. These
innovations are the key to the extravagant financial returns, in turn, adding value to the
business.
Productivity and employee satisfaction
This strategy of the corporate real estate business aims at increasing the employee
satisfaction by making decisions in relation to site selection, environmental standards,
facility amenities, and workplace design.

3. The business organizations caring for the employee and deciding in the workplace that
would increase the productivity and satisfaction of the employee can definitely expect to
increase the financial returns of the business by lower rates of absenteeism, innovation,
efficiency, and greater production. This strategy is very useful for the corporate real estate
as it takes care of the employee that has a direct addition to the value of the business.
Increased flexibility
The concept of flexibility can be seen at the location as well as the facility’s workspace in a
corporate real estate. Business organizations have understood the advantage of flexibility in
the workplace and hence they are reforming the work teams and allowing the employees
for more flexible working hours. The strategy has created a new set of requirements for
adaptability and flexibility in the office environment. The organizations should be ready for
any change in the market. If such a change takes place, then the organization should be
flexible enough to vacate or exit the market without any further delay. The flexibility at the
workspace and workplace is the key to a successful corporate real estate business. The
organizations should focus on a strategy that provides a flexible workspace that matches
with the business’s duration needs. This would help in value addition to the business and
also support the organization’s core strategy.
Cost reduction
The most familiar strategy used in corporate real estate is reducing the costs. The reduction
in cost has an immediate and the most direct impact on the financial activities and
performance of an organization. An important activity that is related to the strategy of cost
reduction is outsourcing.
Outsourcing provides maximum returns in the case of real estate services. Outsourcing is a
business practice where a company hires the individual of another company to provide
services, handle operations, or perform tasks that the employee of the previous company
would do.
Laying the groundwork
The heads of the corporate real estate teams should set and define a vision of the function
they are going to perform. An insular view shall be avoided by engaging with the business
partners early. Those activities should be considered that do not support the vision any
longer so that the resources can be free to support new initiatives.
The team of the corporate real estate must collaborate with the stakeholders and
particularly the Chief Financial Officer. This should be done in order to set out a particular
timeline for the process of strategic planning and obtain the commitment to such a plan.
This strategy would ensure the funding of corporate real estate initiatives.