Following the findings of Mind the Data Gap: Aspiration vs. Reality in Corporate Real Estate—a survey conducted by Forrester Consulting on behalf of JLL—it has been established that corporate real estate (CRE) is becoming a heavyweight for businesses for the reasons below:
- It impacts overall company strategy
- It has significant implications for financial planning, as it directly impacts the bottom line
- It plays a key role in improving the organization’s productivity
CRE has also been shown to become progressively more intertwined with other critical business functions within the organization these days than ever before. In fact, many times you’ll realize that when shaping your decisions, you often leverage the expertise of those who possess technical skills in real estate management and other related areas, such as legal and finance.
However, understanding the importance of CRE to the business is one thing; implementing a successful strategy is another. What is the key to successful implementation? One key feature that I’ve observed across multiple successful CRE strategies is the use of data and analytics.
If your organization has not yet embarked on this journey, it’s important to start now. The role that data and analytics play in CRE is indispensable—data and analytics in real estate present not only many benefits to the broader business, but also an opportunity for your teams to lead the broader business. This is especially so for businesses having more complex CRE requirements, e.g., multilocation and multiple CRE asset classes.
Rubbish in, rubbish out
While the use of data and analytics is key, your insights are nothing if the data is not accurate. We need to focus on the completeness and accuracy rather than the volume of data—these data do not mean anything if we are unable to tap into the actionable insights that can be made from it.
Over the course of my career, I have seen both ends of the spectrum—companies that struggle to create meaningful insights from their datasets, and clients who benefit from the insights that were generated for them. Through the use of data and analytics, they were able to enjoy many benefits, e.g., cost reduction, portfolio optimization, identification of underutilized assets and risk mitigation.
Not quite confident about data and analytics, or not sure where to start? It can be a daunting task, so consider working with an experienced partner, and you’ll be able to navigate through this complex field with ease.
Here’s how we helped one of our clients recently with the use of data and analytics:
Here’s a recent example of how we helped a client: a logistics client wanted to change location with minimal disruption to their staff members, but at a reduced cost. By using the GIS technology as part of our solution, we were able using standard data points, such as market indicators and rental benchmarking, to not only source the ideal location for the client, but also measure the impact of the business’ move to the staff’s commute time and the delivery cost to customers as part of the analysis. By creating actionable insights for our client from the existing data, we were able to identify the best value site that offered the optimal performance benefit to the client’s core business.
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