We're All In This Together
Whether or not to outsource lease administration audits was among the topics. Most corporates handle the task internally. One had outsourced the function for two years and then brought it back inside, citing complexity issues and fees. Another topic was the extent to which corporate real estate managers are involved in facilities management. Most preferred not to oversee that area, so that they could focus their resources more thoroughly on transactions. The norm was to leave that task to the plant managers or corporate headquarters.
Whether centralized or decentralized real estate management works better depends largely on the corporate culture or cultures, especially where mergers and acquisitions are concerned. Either way, the directive must come early from top management so that corporate real estate managers are seen as acting on instructions from the C-suite.
One topic likely to find its way into future programming is the role of corporate real estate managers in disaster-recovery planning, particularly in the wake of the hurricane damage in the Gulf Coast region. Look for some corporations to assign business-continuity experts to site-selection teams.
Opinions on donating properties as part of an asset disposition strategy were varied, but all agreed on the need to have a formal donation policy in place. Risk avoidance is a key driver of decisions to donate buildings or property, but hidden risks can jeopardize donations made with the best intentions.
The session revealed a disparity in when or if corporate real estate managers participate in the logistics and supply chain management functions. Ideally, the group agreed, the corporate real estate team should be a key player in those discussions from their earliest instances.
- Mark Arend
What does your company manufacture?
©200 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.