As many private organisations and Governments take stock of substantial changes in their respective markets and industries, it becomes very important for organisations to look inwards as a natural first step.
Changing markets either by convenience or through necessity offer organisations an opportunity to critically assess and review how they carry on their business and determine what changes (if any) they may need to make to improve the efficiency and effectiveness of how they conduct their business.
The review of an organisations property assets and liabilities is an important part of any internal critique. In many cases, an organisations property portfolio may represent a major component of the assets (or liabilities) of the organisation.
In Colliers experience, many property portfolios typically grow organically through:
- An immediate business necessity at a point in time. For example, we require a presence in Western Sydney; or
- The carry-over of legacy assets from previous businesses or owners. For example, the use of the old head office building of the previous business before it was bought out; or
- Circumstantial or opportunistic acquisitions. For example, the neighbouring property becomes available to buy or lease.
Whilst this form of growth allows some organisations to improve their company footprint, in many instances it may not be the most optimal property solution. Over time this form of growth can compound underlying issues and result in the accumulation of assets that:
- are not performing appropriately,
- do not align with how the business has grown or changed (either of its own accord or through broader structural changes);
- are under-utilised or lazy assets;
- are over-utilised and present business risk;
- have high operational or maintenance costs;
- have a higher and better use.
A well-informed and robust property strategy provides organisations with a clear understanding of their property assets and provides a clear direction and structure to managing and dealing with existing assets or acquiring new assets over the short, medium and long term. A property strategy can deliver a clear organisational direction whilst still providing sufficient flexibility and adaptability to be able to respond to market changes.
5-Step Strategic Property Playbook
Colliers International Strategic Advisory is pleased to present a 5-Step Strategic Property Playbook to help owners, occupiers, investors and Government property decision makers maximise value and reduce risk.