Corporate real estate management

from Wikipedia, the free encyclopedia

Corporate real estate management ( CREM ) and operating real estate management (in German language) refers to the success and value-based purchasing, management and marketing of real estate enterprise ( English corporates ), whose core businesses no real estate-specific focus have (Engl. Non- property companies ). Their properties are also operating real estate or corporate real estate (English. Corporate real estate ) called.

background

Due to the restructuring of the world economy, companies' capital requirements are increasing. In this context, real estate represents an important resource with regard to the financing needs of companies, alongside work, capital, technology and information. The handling of this resource has changed from traditional property management to an independent business field or a "profit center" with management close to the market . Today we speak of a so-called corporate real estate management, in which a profit or a value contribution for the economic success of the company is in the foreground. A large part of real estate in Germany is owned by companies.

Taking into account the amount of tied up financial resources, long-term commitment and the inability to correct wrong decisions, active and results-oriented management of corporate real estate has gained in importance in recent years. One possible approach is that the companies leave the management of their properties to specialists and reduce their capital investment in the property portfolio in order to be able to pursue their core competencies more intensively. To this end, the company's own real estate-related departments are outsourced or external subcontractors are employed ( make or buy ).

Components

Components of corporate real estate management

A professional CREM includes all components of real estate services:

  • Real estate life cycle : creation-use-recovery
  • Real estate management processes : procurement-support-utilization

This results in the following service levels for corporate real estate management:

Goals and benefits

The aim is to increase the profitability of the company as a whole and thus to make an important contribution to the company's success. The CREM regards real estate as valuable objects and strategic resources. It enables companies to achieve the following strategic sub-goals:

  • Recognition and realization of value growth potential
  • long-term minimization of real estate costs,
  • Avoidance of unused, superfluous, or inefficiently used real estate,
  • Creation of options for cost-effective and functional future expansion,
  • Contract law with the greatest possible flexibility and the lowest possible costs,
  • Generation of cash flow ,
  • Effective use of tax benefits ,
  • Risk assessment / avoidance.

In addition, it is important to find the optimum for new locations to be developed

  • the lowest possible vacancy,
  • Expandability and
  • Flexibility and adaptability to changes in the company

to find.

The challenge of CRE management is to exploit these opportunities and realize profits from them without changing or otherwise affecting the core business of the company.

See also

literature