REoptimizer^® Blog

Whether you are a director of real estate for a corporate entity or function solely as a broker specializing in tenant representation, you know that managing the demands of a corporate real estate portfolio is not an easy responsibility. The job requires the latest technological capabilities to handle the day-to-day administration – managing lease calendars, CAM adjustments, renewals and options and monitoring tasks and projects.

You also need to strategize and make solid decisions to drive your business goals forward. Commercial real estate software provides robust and flexible tools that can help you manage effectively and make sound business decisions.

1. Make the Best Possible Real Estate Decisions

Real estate transactions for office, warehouse, retail and other spaces have a tendency to be very complex. For example, items like annual rent and initial year operating expenses provide you just a snippet of the multiple factors that determine whether a particular deal moves you closer to attaining your objectives.

You also need ready access to other important data, such as alternative spaces and key metrics when you need it to avoid over market leases that cut into profitability. Investing in commercial real estate software helps you avoid this pitfall by breaking down and comparing variety of data, including:

• Projected total cost by sites

• Detailed data

• Total occupancy cost per site

Commercial real estate software enables you to organize and track data without mass confusion. Understand a transaction from end-to-end, analyze the information and focus on making better top-level decisions.

2. Promote Unity and Collaboration

A primary challenge for any organization involves the elimination of waste. To survive and prosper, you need a more cohesive, cost-efficient operation that maximizes available resources.

Cloud-based commercial real estate software enhances collaboration with colleagues and partners by making critical decision making data available in real time. No more need to rely on dated, time-consuming and inefficient programs.  

Whether you need transaction data or market comparisons, a commercial real estate application puts key data in a centralized, secured location. Authorized persons with an Internet connection and computer, smartphone or tablet can easily access information.

3. Maximize Efficiency, Drive Costs Down

Companies are always looking for ways to reduce their total cost structure. A commercial real estate lease comprises the third largest expense item on a business’s income statement. Commercial real estate software curtails errors, duplicate activities and waste to help you reduce costs.

You benefit by freeing up capital for core purposes, redirect resources to improve customer satisfaction and increase market share.

4. Visualize Company's Location Opportunities

Having access to all the raw data you need is not sufficient for helping you to visualize all your spaces and make comparisons with properties in the surrounding location and broader market.

The application’s mapping component affords you the following advantages:

• Identify efficiency

• Analyze proximity of vendor or services

• Determine local concentrations of customer base

Find out which locations are accessible for truck deliveries, the best routes for getting employees to the workplace, exposure for storefront properties or new potential sites for opportunities.

5. Save Time

Having the right software saves you time whether you're managing current spaces or analyzing new opportunities. Relying on spreadsheets and standalone programs requires you to spend an excessive amount of time populating databases and pulling information from multiple sources.

This increases the possibility of human error and takes time away from other important activities. Commercial real estate software provides a one-stop source of data that is accurate and available when you need it.

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While a rent abatement is one of the more valuable concessions that a corporate real estate tenant can receive, it's also one of the least expensive ones that an owner can give. With this in mind, some landlords will use rent abatements as a way to get a tenant to settle for a less valuable package of concessions than might otherwise be available. Furthermore, rent abatements can come with varying terms and may not save you as much as you think.

An ideal commercial real estate team consists of more than just you and a broker. Buying a building is usually a multi-million dollar transaction, and building a comprehensive team of experts requires a relatively small investment of time and money. Every one of these professionals can add value to the transaction and help to ensure that you get the right building at the right price:

While computers have made it easier to do site selection from your office, a smartphone with the right commercial real estate app package gives you the best of both worlds. Instead of having to be stuck at your office to get access to the data that you need, you can be in the field at potential sites and still have access to all of the data that you need to support what you learn on-site. To be truly productive in site selection, you only need three apps:

When your company looks to expand internationally, the five leading markets are, not surprisingly, some of the world's leading business centers. All have a strong infrastructure to support your business and excellent corporate real estate options:

When you're negotiating lease terms, one of the most important clauses is your lease extension clause. It's one of the few parts of the lease that put you in the driver's seat and give you a degree of control over the landlord. Written correctly, it helps you mitigate the two biggest risks of leasing space -- losing the space at the end of the lease and uncapped rent increases. Written incorrectly, it can become worthless.

The site selection process isn't only about finding a space that works for your business and its customers. It's equally important to focus on what your workers need. Sometimes, the best space for your business isn't the best one for its workers, and choosing the wrong space for them can cost you millions in lost productivity.