SIX
priorities for cost savings
in office real estate
01
Align office strategy with business goals
Linking the office strategy to an organisation’s unique business goals is the first
step to identifying strategic opportunities for cost reduction.
Decisions around owning versus leasing should be aligned to location objectives and expected length of requirement for each office.
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Taking support from large landlords and analysing their debt positions and credit ratings could help businesses gain insights into potential negotiation leverage.
01
Align office strategy with business goals
Leverage energy-efficient lighting, HVAC systems and building automation systems to reduce utility costs while improving the overall environmental impact of your office space.
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By prioritising sustainability initiatives and green building practices, you can achieve long-term cost savings while enhancing the environmental performance of your office buildings.
05
Prioritise energy efficient systems and upgrade
Ensure a positive work environment to drive employee engagement, satisfaction and productivity. Happy and engaged employees are more likely to utilise office space efficiently and contribute to cost-saving initiatives.
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06
Drive employee engagement and satisfaction
Consolidation opportunities, including reimagining office campuses or adopting hubs, could be a game changer to unlock cost efficiencies.
Monetising non-core assets, along with right-sizing and repurposing offices to match new ways of working, is key to thriving in today’s dynamic environment.
02
Portfolio strategy
For instance, in hybrid work models, analysing occupancy and optimising space utilisation, as well as taking advantage of long-term labor-cost arbitrage opportunities and government incentives, are at the core of reducing real estate costs.
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Another option is to relocate to markets that offer a competitive edge with talent availability and affordability, while also being compliant with ESG requirements.
By leveraging technology to automate routine tasks, track space utilisation, and enhance operational efficiency, you can achieve cost savings and improve the overall performance of your corporate office real estate.
Using occupancy sensors and space management software allows for efficient tracking of space utilisation metrics such as occupancy rates, desk utilisation and meeting room usage.
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Embrace technology solutions and automation tools to streamline office operations, improve efficiency and reduce administrative overheads.
04
Data-driven space utilisation
Invest in smart building technologies, digital workplace platforms and facility management software to optimise facility management, space planning, maintenance and tenant services.
When putting together an office strategy, being able to capitalise on favorable conditions by understanding market cycles and timing is key.
Save on rent arbitrage by identifying areas of above market rent or by relocating to a lower cost market.
03
Maximise lease negotiations leverage
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Dispose of excess space by subleasing or exercising termination or contraction options. Consider shorter-term and coworking options to minimise up-front costs.
Renegotiate leases and contracts.
These options will not just allow businesses to cut back on costs significantly, but also offer much sought-after flexibility to keep up with evolving business needs.
02
Portfolio strategy
03
Maximise lease negotiations leverage
04
Data-driven space utilisation
05
Prioritise energy efficient systems and upgrade
06
Drive employee engagement and satisfaction