A company can optimize the utilization and condition of its major facilities by managing its real estate portfolio effectively. This involves having a clear understanding of the company's footprint, including the locations, types of land and buildings, utilization and condition of major facilities, lease terms, operating costs, and financial and environmental risks. Building in flexibility, such as financial (leasing instead of owning), physical (designing modular space), and organizational (redistributing work) flexibility, is also crucial. Additionally, leaders should cultivate intelligence by obtaining accurate real estate data, synthesizing it into relevant information, and interpreting it in the context of corporate and competitive realities. Teaming up with professionals in the industry can also be beneficial.
Real estate can be a great addition to an investment portfolio. But as with any investment, it has t...
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