Corporate business goals are more important than cost for portfolio decisions, according to the recent Annual Survey of Corporate Real Estate Practices. The survey was conducted through a partnership of Johnson Controls, Inc., the University of Reading, and the International Development Research Council (IDRC). Results of the survey include the following:
- Most global corporate real estate management mission statements place more importance on providing real estate services to support an organization’s business goals than on cost minimization, which was the previous focus.
- Despite widespread dramatic increase in internal e-mail and corporate networks/Intranets, corporate real estate executives still report insufficient information for a good evaluation of the performance of their real estate.
- Property costs have been taking an increasingly higher percentage of an organization’s total yearly expenditure in the last few years, up from 14 percent last year to 28 percent this year.
- The skills and knowledge most important to future corporate real estate executives include real estate portfolio management, the organization’s business or activity, strategic planning, and negotiating/deal making.
Based on a report from the Journal of Property Management magazine
