Mastering Corporate Real Estate Strategy: Key Steps for Success

Imagine a workplace where every square foot is optimized, expenses are watched, and staff members thrive.

It doesn’t have to be an unattainable dream if you have a powerful, well-thought-out corporate real estate strategy.

Your CRE strategy does more than handle logistics. It touches everything from business goals to employee experience and can make or break employees’ engagement and productivity.

We're all about helping you handle the tricky parts of planning your real estate initiatives. Use this know-how and tools to make smart choices that set you up for growth.

Why do you need to build your CRE strategy?

Picture yourself stepping into an office where every corner is designed to boost productivity. A well-planned corporate real estate strategy can turn spaces into buzzing work centers. By looking at how your people use space, you can spot where resources are put to good use and where you can cut costs.

A savvy real estate plan will show empty spaces you can reuse or eliminate, saving you money. Forbes says companies that use these plans often see their overhead costs drop.

The goal is for your staff to walk into a workspace that suits their needs, making them feel at home and driven. Well-planned offices have a significant effect on employee engagement and loyalty.

Benefits of a corporate real estate strategy:

Better use of space: It makes the most of every square foot to support business activities and reduce unused space.
Lower costs: Spots ways to trim expenses, leading to savings in overhead costs.
Happier employees: Builds a workspace that meets employee needs, boosting satisfaction and output.
More involvement: Well-designed offices help increase employee commitment and loyalty.
Easy to change: Allows quick changes to spaces as business needs shift.
Company image: Improves the company's reputation by creating an attractive work environment.
Green practices: Encourages eco-friendly methods by maximizing space use and cutting waste.

‍

How to assess your current situation

Before you make your corporate real estate plan, you must look into how you use your workspaces, what your lease deals say, and how much you spend to run things.

Space utilization analysis: Do you have too much or too little space?

Start by conducting a space utilization analysis. Determine if your current space works for your business needs. Do you have spots that nobody uses? Or do you often feel like you don't have enough room?

Leave no stone unturned and no space unexamined: underused spaces could cost your business a hefty penny yearly. Look for opportunities to expand, downsize, or reconfigure your real estate to maximize usage and lower costs.

Cost-effectiveness: How much do you currently pay?

Understanding the financial aspect of your real estate is crucial. Take a look at how much you’re spending on office space management across locations. Is there a way to cut costs without sacrificing efficiency or employee satisfaction?

Review this step-by-step guide on cost-effectiveness in real estate for practical strategies to help you manage expenses effectively and ensure your CRE strategy not only meets the budget but also gets the job done.

Business Goals: Does the space align with your plans?

Ideally, your office space should match your big-picture business objectives. Recently, a local start-up had envisioned expanding its team by 50% within two years. As they began the process of interviewing, hiring, and setting up new workspaces, they quickly realized their current space was not necessary for their plans. A majority of their employees worked hybrid, and a dedicated space for every employee was costing them thousands.

Had they considered their space and needs first, they could have saved by downsizing while still growing their company to meet their goals.

Look at whether your current workplace supports your company’s operations and helps reach its goals. Does the setup enhance your employee’s productivity and communication?

Employee satisfaction: Are your employees getting what they need?

Employee satisfaction can make or break your corporate real estate strategy, especially in the hybrid work era.

A good office setup impacts both employee morale and efficiency. Consider conducting surveys and getting feedback to gauge what your employees think about their workplace.

Some questions you can ask employees include:

Is the commute to the office too long?
How often do they want to come in per week?
What type of spaces do they use when in the office (e.g., small meetings, large gatherings, brainstorming sessions, breakout rooms, open spaces, focus areas, etc.)
Do they find their workspace comfortable, inspiring, and fit for purpose
Do they need more rest areas, natural lighting, or greenery in the space

By addressing employee needs, you’re creating an environment that promotes passionate work, ultimately aiding in your overall business strategy.

Risk analysis: Are there environmental or financial threats to your current real estate?

Depending on where your real estate is located, you may be more susceptible to certain threats. Consider environmental factors like natural disasters or pollution. Also, look at possible financial risks, such as changing property values or growing upkeep costs.

A full risk check-up can provide foresight into possible scenarios and help you prepare for them. This ensures that your real estate strategy can handle tough times and last in the long term.

What questions should you ask to dig deeper?

When developing your corporate real estate strategy, look closer at workplace data and extract insights specific to your organization that can help you make wise, cost-effective decisions. Most importantly, ask good questions to recognize what data is most valuable. Here are some key areas to consider.

Employee commute: Where do employees commute from?

Understanding your employee commute requirements matters a lot when considering their overall productivity and workplace satisfaction. Look at where your workers live and how they travel to the office. Are they spending too much time on the road? Long or arduous trips to work can negatively impact how much people get done and how they feel.

These are just a couple of examples of metrics we highly recommend tracking, especially since hybrid work has become a critical part of post-pandemic workplace strategies.

Market analysis: What are the current market conditions?

Your real estate market analysis should involve researching current trends and forecasting the market value of the properties around you.

What deals are available in your area? Can you negotiate better lease terms or take advantage of market trends? For instance, if you find that office spaces in neighboring districts are becoming more affordable due to new developments, you might negotiate better lease terms or relocate.

By making your corporate real estate portfolio work for you, you can make clever choices that fit with what you want. To see what's new and get some numbers, check out this report from JLL.

Building requirements: What type of building do you need?

Evaluate what type of building best suits your business needs. Do you require a modern, open-plan office to help with collaboration or a more traditional setup with private offices?

Consider the specific requirements of your industry and operations for optimization. Additionally, consider future growth and whether this building will serve your current needs as well as those of your business in one year or five years.

A comprehensive list of questions

To help you conduct a full analysis and aid your real estate decision-making, here’s a list of questions for you to consider:

Is the current space flexible enough to adapt to future changes?
How does the office layout impact team collaboration and productivity?
Are there adequate amenities and facilities to support employee well-being?
What is the total cost of occupancy, including hidden expenses?
How does the building’s location affect your supply chain or logistics?
Are there any upcoming lease expirations or renewal options?
How do the building's energy efficiency and sustainability align with your company values?
What is the landlord’s reputation and responsiveness to tenant needs?
Are there opportunities for subleasing unused space?
How does the current space impact your company culture and brand image?
What are the security measures in place for the building?
How does the location affect your recruitment and retention efforts?
Are there any legal or zoning issues that could affect your business operations?
What is the quality of the building’s infrastructure, such as HVAC, elevators, and internet connectivity?
Are there plans for future development in the area that could impact your business?

Asking these questions will help you gain a deeper understanding of your current real estate situation.

Creating a corporate real estate strategy that thinks long-term

Creating a CRE strategy means thinking long-term. This section will guide you through key areas to consider when planning for the future, so your strategy stays relevant and works well over time, not just for the short term.

Scaling occupancy: Getting ready for growth or changes

As your business grows, your long-term real estate planning will grow too. It's key to plan scaling occupancy, ensuring your office can handle future growth or downsizing.

You will be prepared to avoid balance sheet disruptions and make changes seamlessly. Additionally, if you have hybrid or remote employees in some areas and hubs, you can use coworking spaces on-demand to supplement your office capacity and scale as you grow.

Read our step-by-step guide on gathering employees in coworking spaces >>>

Making work better: Adapting spaces to employee needs

Your employees are the heart of your business. Satisfied employees do better at their jobs.

This means everything from how the office looks to what resources there are for them. When you put your workers first, you create a place where they can do great work in great time. Think about comfortable chairs, quiet spots, and places to engage together to make communication simpler.

Understanding productivity: How employees use spaces

Look at how people use different areas. Which parts of the space do they tend to congregate in, and which ones are chronically underutilized?

Once you figure this out, you can make sure high-traffic areas are set up to help people work smarter by providing collaborative workspaces with adequate seating, whiteboards, and technology.

For example, if you notice that employees tend to gather by the break area for impromptu meetings, you could redesign that space to include comfortable seating and presentation tools, transforming it into a collaborative zone.

Leveraging technology: Understand utilization and predict workplace patterns

Using tools to track how space is utilized and to optimize predicting workplace patterns can give you valuable insights.

This data-driven approach lets you make the best use of your space, boost productivity, and align your CRE with your corporate strategies. Implementing advanced analytics can help you stay on top of real estate trends and make proactive choices.

Here’s what you should look for in a good space management software:

Easy-to-use desk and room scheduling
Interactive maps and floor plans
The ability for employees to see when their coworkers are coming into the office
Integrations with access control and messaging tools like Slack and Teams
Seat assignments and neighborhoods for easy cross-collaboration
Mobile app for easy, on-the-go office bookings
Visitor bookings and management
Real-time workplace data and insights

If you’re on the lookout for office space management software, consider Gable HQ.

It’s the most affordable space management tool on the market, offering desk booking, room scheduling, visitor management, and robust data and insights.

The best part? It integrates perfectly with Gable On-Demand, a flex space marketplace for companies adopting hybrid and remote work. If you combine the two, you’ll manage coworking spaces and offices side by side, all in one platform.

Implementing and monitoring your corporate real estate strategy

Creating a corporate real estate strategy is just the beginning. To ensure your plan works well and stays in line with your business goals, you need to put it into action and keep checking on it.

Implementation steps

To get your strategy up and running, you need a clear plan. Define your goal clearly and list the steps to achieve it.

Give team members jobs to do and set realistic deadlines for each task.

Think of all the details and small tasks, from announcing a revamped space to employees to onboarding a new workplace tool. Use project management tools and communicate frequently to ensure all steps are covered.

Use KPIs to measure success

Monitoring the success of your corporate real estate strategy involves tracking key performance indicators (KPIs). Some essential KPIs include space utilization rates, employee workplace experience, and real estate cost-effectiveness.

Look at these metrics often to understand how well your strategy and real estate portfolio work.

Adjust the strategy based on feedback and data

No strategy is static; it should evolve based on what people say and what numbers show. Continuously gather feedback from employees, stakeholders, and senior management to understand their needs and concerns.

Use this information and your KPIs to make informed adjustments to your strategy. This could mean moving things around, updating the workplace design, or getting new tech. When you listen to the data, your plan stays useful and works well.

Get ahead of your CRE Strategy

A good CRE plan can give your company a competitive advantage, especially in a distributed work landscape.

Take a good look at what you have now, ask the right questions, and think about the future. Using the right tools, you can put this plan into action.

Want to get a grip on your corporate real estate plan? Check out Gable's HQ Management. Our expertise and unique, innovative features will turn your office into a place that helps your business hit goals and do great things.

Resources