Future Fit
Real Estate Portfolios

Three Key Trends Impacting Portfolio Management of Corporate Real Estate:

• „From Static to Dynamic“
  The traditional hierarchical structures of corporations are becoming more fluid. New technologies are blurring the boundaries of physical location. In order to navigate this rapidly changing global and digital landscape, corporate real estate managers must embrace a more flexible approach to portfolio management.
• New Work
  As employees and decision-makers demand more flexibility and a new leadership style, the modern office concept is becoming increasingly important. To attract and retain top talent, companies must prioritize employee engagement, motivation and a strong corporate culture.
• Global Uncertainty
  With shorter product lifecycles and a more uncertain business environment, the gap between the lifecycle of a commercial property and product is widening. Corporate real estate managers must now focus on navigating change, rather than solely providing space, and become more strategic in their real estate decisions.

While this transformation process provides a unique opportunity to reposition CREM, it requires cooperation with other departments such as IT, HR, and Finance.

CREM organizations must overcome several hurdles in order to achieve success, including:

• Real estate management being viewed as a secondary process, leading to limited access to budgets and resources.
• Increasing complexity of the portfolio transformation process, involving a variety of stakeholders with different interests.
• A disconnect between the global CREM team at headquarters and local managers at the sites, making knowledge transfer and adapting strategy to local conditions difficult.
• The need to evaluate and decide on portfolio changes based on profitability in addition to factors such as ESG and changing working environments.