Real Estate Portfolio Advisory

We support corporates and large Not for Profit organizations (Government, Education, Healthcare, Housing) with complex and challenging issues around

• Portfolio optimization
• Location and portfolio strategy
• Future of work
• Redevelopment
• Specific assets and campus real estate
• Footprint optimization
  

No consideration without data. In many companies and institutions there is insufficient information available for adequate steering towards added value. The availability of data supports real estate management processes and enables optimization of the portfolio. An organization must determine what data is needed in order to make steering at portfolio (and asset) level possible. In many cases, the data requirements can be determined based on the real estate value drivers for the specific organization. Data, combined with the correct tooling, supports the necessary integral decisions around real estate. Dashboards, for example, provide the opportunity to combine different aspects from different data sources in real estate, such as finances, functionality, strategic value, etc.

A characteristic of real estate is that different interests come together around an object. The different interest can arise from the various focus areas in the organization, such as finance, production, or personnel, for example. Within an organization, but also outside. The decision-making in real estate is always based around the interests related to the property. A simulation, showing the often-complex intertwining of interest, can contribute to the acceleration of complex and sensitive decision-making.

It is essential for the real estate strategy to be aligned with the company strategy. In fact, it comes down to the available properties having the highest possible value for the organization, by, for example, meeting the actual needs of the organization in the right location in the right building at the right price. Practice shows that such ‘alignment’ is missing in many organizations. By making a solid analysis of the accommodation portfolio, with a multi-year plan for assets, concrete actions can be formulated and executed so that the added value of the real estate can be as high as possible.

Dependent on the organization’s mission, a suitable operating model should be set up. An organization with a shrinking supply requires a different approach than one with a growing supply. Important is the definition of roles of the real estate department, process descriptions and the planning of the required expertise and capacity. Aspects such as insourcing and outsourcing are also part of this. Many organizations have drafted their plans around real estate without considering the organization that is needed for the execution of the plans.

The high vacancy rates in the office market mean that offices are increasingly being redeveloped to serve a purpose for which there is a greater demand—residential use for example. This offers property owners an opportunity to give obsolete property a useful purpose and sell it for a reasonable price.

Deloitte Real Estate supports companies in their real estate strategy, from individual objects to entire portfolios. This comprises, among other things, the development of real estate companies, restructuring, (operational) cost and revenue improvement, make or buy decisions, optimization of financing and benchmarking.

Deloitte Real Estate advises corporates about future business location by analyzing options in a transparent and objective way and supporting decision-making. A thorough understanding of the underlying relevant location criteria, knowledge of local markets and alignment with the client’s specific requirements (business ratio, market entry, cost reduction, partnerships/innovation etc.) are the characteristics of our service provision. From an evaluation between countries and regions, to a location screening and a thorough due diligence on a location and/or specific property.

Deloitte Real Estate makes real estate portfolios transparent and identifies opportunities for optimization. By charting the actual (future) needs of the organization (based on organizational strategy), combining this with new workplace strategies and matching this with the real estate offer within the organization, the footprint of the desired situation is determined. We do this, among other things, by making clever use of company data and combining this with market information. This combination provides new and often surprising insights into the way in which real estate supports corporate strategy and where the opportunities for savings lie. Based on these insights, a strategy is developed, together with management, to realize optimizations and cost savings.

Deloitte Real Estate has proven that creative solutions are needed for the disposition of obsolete real estate locations. We focus on creating partnerships to strengthen the (societal) added value of locations and on well-founded place branding. This thinking in creative solutions is what distinguishes us from real estate agents.

Deloitte Real Estate advises on the development of business campuses, science parks and commercial estates. These are, in fact, expressions of micro ecosystems focused on R&D, (scientific) knowledge development and open innovation, with an explicit role for an anchor tenant / user. Characteristic of our service provision is that we connect corporate objectives with the region’s strengths, market requirements and spatial-economic strategy. By combining these aspects, our clients profit optimally from the momentum, while safeguarding the long-term perspective.