Strategies for Real Estate<br />A primer on various real estate activities<br />Prashant Das<br />Partner<br />
Objective<br />Introduction<br />PART-I: Corporate Real Estate Strategies<br />PART-II: Service Provider Strategies <br />...
PART-ICorporate Real Estate<br /><ul><li>Real estate owned by corporate has traditionally been one of the largest asset co...
Annual spending on a company’s real estate may vary from two to more than 10 percent of the total revenue </li></li></ul><...
Typical Corporate Strategies<br /><ul><li>Integration of </li></ul>real estate and corporate strategy<br /><ul><li>Central...
Leveraging technology
Outsourcing real estate </li></li></ul><li>Cornell Balanced Real Estate Assessment model (COBRA)<br />The model considers ...
Architectural Branding,
Building Adaptability,
Defined Boundaries,
Regional Economic Volatility .
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Realism.in real estate_strategies

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A primer on various real estate activities which includes Corporate real estate strategies, Service Provider strategies & Real Estate Company Strategies

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Realism.in real estate_strategies

  1. 1. Strategies for Real Estate<br />A primer on various real estate activities<br />Prashant Das<br />Partner<br />
  2. 2. Objective<br />Introduction<br />PART-I: Corporate Real Estate Strategies<br />PART-II: Service Provider Strategies <br />PART-III: Real Estate Company strategies<br />
  3. 3. PART-ICorporate Real Estate<br /><ul><li>Real estate owned by corporate has traditionally been one of the largest asset components.
  4. 4. Annual spending on a company’s real estate may vary from two to more than 10 percent of the total revenue </li></li></ul><li>CRE: The Finance’s view <br />Why is Finance team interested?<br />Savings on all other fronts of business such as sourcing, business process redesign etc have been extracted already<br />CFO’s role has expanded up to the level of strategic planning<br />
  5. 5. Typical Corporate Strategies<br /><ul><li>Integration of </li></ul>real estate and corporate strategy<br /><ul><li>Centralizing Real Estate Functions
  6. 6. Leveraging technology
  7. 7. Outsourcing real estate </li></li></ul><li>Cornell Balanced Real Estate Assessment model (COBRA)<br />The model considers the following attributes <br /><ul><li>Community Impact,
  8. 8. Architectural Branding,
  9. 9. Building Adaptability,
  10. 10. Defined Boundaries,
  11. 11. Regional Economic Volatility .
  12. 12. Net Income Per Employee (“NIPE”)</li></ul>Uncertainty Analyses, <br />Risk-Reward Analyses <br />Monte Carlo Analysis<br />
  13. 13. PART-IIService Provider Strategies<br /> Strategic Approach<br />Needs assessment<br />Specification of service offering<br />Compensation arrangements and pricing level<br />Market segment coverage—geography, property type, scale, financing form, etc.<br />Form of work product deliverable<br />
  14. 14. Service Provider Strategies<br /> Competitive Differentiation<br />Cost<br />Service<br />Expertise<br />Market coverage<br />Prestige<br />Strength (deep pockets)<br />Risk allocation between client and service provider<br />One-stop shopping<br />Scale/Size<br />Focus/Specialization <br />
  15. 15. Service Provider Strategies<br /> Initiative to Stimulate Demand<br />General—i.e., You should invest in real estate because . . .<br />Service—i.e., You should have an independent due-diligence analysis because . . .<br />Type of service provider—i.e., You should retain a firm with these qualifications . . .<br />Specific company—i.e., You should work with our company because . . .<br />Transaction—i.e., You should retain us for this specific transaction because . . .<br />Contract terms—i.e., You should retain us to provide these services on these terms because . . .<br />Ongoing support—i.e., You can count on us to help you on an ongoing basis . . .<br />
  16. 16. PART-III Development Company Strategies<br /> Need for a Real Estate (Development) Company to strategize<br />Changing Economic and Real Estate Environments: A looming shift between phases of the real estate <br />Changes in Ownership and/or Leadership: Either an orderly or traumatic shift in key leadership <br />Mergers and Acquisitions: Every aspect of a company’s strategy <br />Tremendous Growth: Complete structure of the organization<br />Challenges to Growth: Reposition, expansion, diversification, or rationalization<br />Legacy Vision: desire to create a long-term vision and lasting legacy for good and bad times<br />
  17. 17. http://www.realism.inThe new ‘ism’ in Indian Real Estate<br />realism.IN™ is a partnership of entrepreneurs from India and the United States striving to provide high quality knowledge backbone to the real estate business in India. Our core competencies include real estate, land development, finance, banking, investment, marketing, branding, strategy, statistical modeling, econometrics, Information Technology and architectural design.<br />

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