May 19, 2006—Even though corporate real estate is a significant asset, productivity variable and high cost for any large organization, most executives arent applying the level of rigor, analytics and new approaches that they devote to other strategic functions, and the result is significant missteps according to new research from The Boston Consulting Group (BCG).
In the BCG study, more than 40% of corporate real estate executives say that business units projections of space demands are typically off by 100%. According to BCG, corporate real estate executives are too removed from business units; the executives and the business units themselves are not willing enough to pursue, and pay for, flexibility in leases and workplace models; and, too frequently, inaccurate forecasting models are used.
The BCG research points out that the best-performing corporate real estate groups interact frequently with business units — but too few corporate real estate units do this.
For more information, visit the BCG Web site.
