Planning and developing real estate the proactive way

Portfolio management focuses on developing and optimizing corporate real estate to ensure an early identification of opportunities and risks. Thus, timely measures may be taken in order to safeguard the fulfillment of strategic goals. The creation of value-added potential via investment planning represents a central field of action, e. g. by implementing measures for maintenance and refurbishment. Furthermore, verifying opportunities for the enhancement of the portfolio structure plays a crucial role in improving corporate capital commitment and flexibility. Company-wide planning and coordination of portfolio usage are also essential for an optimized employment of resources. In addition, corporate developments such as the roll-out of a sustainability strategy comprise numerous property-related measures.

Systematic portfolio management aligns the full scope of duties on a company-wide scale. Subprojects are to be planned within a joint framework to initiate a balanced program of short-term (“Quick Wins”) and long-term activities. Therefore, it is essential to define a cross-site strategy for the development of the corporate real estate portfolio. The goal is to support value creation and cost effectiveness by deriving precise measures. For this purpose, metrics are used such as characterizing market attractiveness or an object’s relevancy for core businesses. This enables drawing a coherent picture of the company’s real estate portfolio – the so-called “Property Portfolio Matrix”. The following illustration shows an example for the strategic classification of corporate real estate and for the assignment of necessary actions.

bedeutung für das Kerngeschäft

Property Portfolio Matrices offer a powerful decision tool as they provide an overview of the current situation as well as facilitating strategic considerations regarding corporate real estate. In this way, a formalized, holistic review of specific objects and the problems associated to them can be established.