Spp community session strategy and portfolio planning for corporate real estate
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SPP Community Session- Strategy and Portfolio Planning for Corporate Real Estate. Benchmarking Strategic Planning Activities and Next Steps. SPP Benchmarking Study. Starting Point. A simple question: What are CoreNet End-Users doing in their strategic spaces?. SPP Benchmarking Study.

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SPP Community Session- Strategy and Portfolio Planning for Corporate Real Estate

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Spp community session strategy and portfolio planning for corporate real estate

SPP Community Session-Strategy and Portfolio Planning for Corporate Real Estate


Spp community session strategy and portfolio planning for corporate real estate

Benchmarking Strategic Planning

Activities and Next Steps


Spp benchmarking study

SPP Benchmarking Study

Starting Point

A simple question: What are CoreNet End-Users doing in their strategic spaces?


Spp benchmarking study1

SPP Benchmarking Study

Step One

Design a survey

  • Corporate Info:

    • Portfolio size & complexity

    • CRE department size

    • Data accessibility

  • Strategic Plan Info:

    • Scope / Composition / Time Horizons

    • Accountability / Approvals

    • Corporate Alignment / Driver Metrics

  • Success Stories / Challenges

    • Interviews

      Vet survey questions with End-Users and Service Providers before distribution

      Multiple iterations until survey is finalized

Baseline Portfolio Complexity

Staffing, and Data

Correlational

Analysis

Baseline Planning

Practices

End-User

Interviews

Case Studies

Successes & Challenges


Spp benchmarking study2

SPP Benchmarking Study

Step Four

Follow-up with In-Depth Interviews

  • Standardized Interview Format / Obtain Comparative Qualitative Data

    • Obtain details on look and feel of strategic plan

    • Confirm metrics and goals

    • Delineate management approval / interaction process

    • Obtain success stories / understand challenges

    • “How to Succeed” knowledge delivery via Webinars

      Five Interviews done to date

      Goal: 15-35 interviews

      2012 Goal: Webinar Presentations to roll-out results


Spp benchmarking study3

SPP Benchmarking Study

Step Two

Distribute Zoomerang Surveys

  • Chapter / Group Participation:

    • New York

    • No. California

    • Chicago

    • SPP End Users

    • Atlanta

    • Carolinas

Excellent participation: 76 End Users


Spp benchmarking study4

SPP Benchmarking Study

Step Three

Preliminary Results

Portfolio SF

(Millions)

50+

20-50

16%

0-5

Portfolio Locations

(No. of Sites)

8%

45%

5-20

<25

>700

9%

25-100

23%

18%

24%

300-700

100-300

16%

29%

  • 63% have more than 100 locations

  • 47% have more than 5 million SF

Corporate End-Users deal with complex portfolios


Responsibility and approval

Responsibility and Approval

  • Responsibility for strategic plans differs by organization.

  • Less than 50% of organizations require formal approval by business line management or senior staff external to CRE.

What group is responsible for real estate strategic planning?

Is your real estate strategy document formally approved by senior management?

Other category does not include service providers or space planners.


Strategic planning drivers

Strategic Planning Drivers

  • Business alignment is the primary driver for 60% of respondents

  • Cost reduction is the primary goal for 32% of respondents.

  • Only 42% of plans have explicit cost saving targets

What is the primary driver for

your real estate strategy?

Does the approved strategic plan have established cost savings targets?


Strategic planning metrics

Strategic Planning Metrics

  • 72% consider real estate cost per person a primary driver.

  • Less than half compare real estate cost to enterprise revenues or costs

  • 43% of respondents are including sustainability metrics in their plans

Which metrics are the primary drivers for CRE strategy / performance?

Are sustainability metrics part of your organization's real estate strategic plan?


Long term plans and documention

Long-Term Plans and Documention

  • Just over 60% have written plan that includes more than performance goals and guiding principles.

  • The largest share of respondents complete plans for 3-5 years.

If you have a written plan that includes more than annual performance goals and guiding principles, what is the number of years for the planning horizon?

Do you have a written plan that includes more than annual performance goals and guiding principles?

Percentages are share of total resondents


Data challenges

Data Challenges

  • Most respondents have access to basic real estate data.

  • More than half have headcount forecasts that are directionally accurate for 1-3 years. Is that sufficient for planning?

What information is tracked by CRE?

Do you have access to directionally accurate ( + / - 20%) headcount projections? If yes, for how many years?


Round table discussions

Round Table Discussions

  • Current research task forces

    • Discussion of current activities

  • Other topics

    • What are your challenges?

    • Best practices - what resources have you found most beneficial?

    • What could be next steps for this topic?


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