Why a Strategic Approach to Real Estate?
Real estate is a significant cost to business; It is also fairly permanent and visible. For a large part of the real estate public, the emphasis is on the “deal,” not how real estate will improve the business. For this reason, a strategic approach will give the real estate user new tools to improve its use of property.
Here are a few goals in the strategic use of property:
- Real estate has the potential to be a competitive advantage if the opportunities and business are thoughtfully considered. Strategize to make real estate improve the business.
- As a counter to the deal-driven real estate market, a strategic approach analyzes what is best for the business, not what is best for the developer.
- Real estate is the fount of identity for customers and employees. It is the place of production, creation, and administration.
- Business changes and companies require ever more complex analyses. But real estate tends to be more stable and visible.
- Functionally, properties can be acquired or modified to improve business processes.
- Operationally, real estate is a key component in communication and networking with customers and business allies.
- Develop a strategic mindset throughout the organization
I learned much of this material from Dr. Martha O’Mara, Ph.D in her book and seminar entitled Strategy and Place: Managing Corporate Real Estate and Facilities for Competitive Advantage. The original work from 1999 can still be found on Amazon.