Enterprise Value Creation through Real Estate & Human Asset Optimization

摘要

Corporate real estate assets are usually the first or second largest balance sheet item and second biggest operating expense in enterprises after human capital. So why aren't public and private enterprises more proactive about optimizing real estate and providing cross organization data that reduce information asymmetry among company decision makers? The strategic importance of enterprise real estate optimization has elevated dramatically with the recent COVID-19 pandemic. This is not just due to employees working from home for months. The cost and future utilization of real estate space and work locations, in conjunction with the health, safety, and wellness of workers, is being re-evaluated by almost every entity. At the same time, there is a unique opportunity for enterprises to rethink how real estate can contribute to overall productivity and employee morale. Better understanding the value creation potential of scaling-up the strategic role of corporate real estate to enhance earnings, cost savings, is the ideal pathway to optimizing human capital, the most important asset in public and private enterprises. The journey begins with a diagnostic phase to identifying customized KPI's (Key Performance Indicators) that provide real-time strategic data on operating costs, occupancy patterns, capital expenditures, long range plans for space utilization, and formulas/algorithms that measure the financial and shareholder impact of optimization. Creating analytic dashboards that allow management to measure the value-adding elements of optimizing their real estate portfolios still remains one of the largest unexplored frontiers in corporate strategy. The following sections will present historical context, research findings, and recommendations on how to unlock this hidden treasure in enterprise management.