Commercial real estate playing a larger role in U.S. corporate expenditures is the effect of a recovering economy fueling broad-based growth. In Working Smart: Value Management for Corporate Real Estate, a recent report presented by CFO Research and IBM, 47% of senior financial executives polled forecasted an increased scope of their company’s operations over the next three years. Executives mentioned investment in sectors such as office real estate and industrial space, as well as overseas expansion and the re-evaluation of current space.
CFO Research and IBM add insight to the results of the study, “In the past, real estate may have been treated almost as an afterthought in a company’s business planning. Today, it’s likely that the CFOs who relegate real estate to the back office do so at their own peril.”
As corporations grow in a rebounding economy, real estate is needed to house more employees and expanded operations. However, the report showed executives were not necessarily looking to expand office space, but rather to invest in real estate strategies to accommodate changing work practices, such as an increasingly mobile workforce.
According to CFO Research and IBM, “Fifty percent of respondents named the reducing operations and occupancy costs as one of the top three objectives for corporate real estate, and 47 percent cited improving real estate utilization as a top priority.”
If your corporation is considering expanding or streamlining your commercial real estate portfolio, get in touch with the Intelica Corporate Services Group. As a strategic partner, we help corporations align their workplace with business processes, people, operations, and information technology.