Creating Resilience
Financial Services Company Leverages CRE to Maximize Value for their Organization
August 21, 2023 3 Minute Read
In today’s environment, corporate real estate (CRE) executives are being challenged to deliver transformational outcomes for their enterprises in areas such as:
This is certainly the case with CBRE’s long-time financial services client. What began as a periodic brokerage transactions relationship 18 years ago has evolved into a strategic alliance with integrated delivery across their entire portfolio of 9 million square feet. The integrated delivery model includes transaction management, project management, and facilities management across the U.S. and Canada. But what makes the delivery model “integrated” and not a traditional approach to outsourcing?
- Occupancy cost reductions that can impact the bottom line
- Sustainability initiatives to achieve publicly stated carbon neutrality commitments
- Workplace experience programs to enhance employee engagement and improve office utilization
This is certainly the case with CBRE’s long-time financial services client. What began as a periodic brokerage transactions relationship 18 years ago has evolved into a strategic alliance with integrated delivery across their entire portfolio of 9 million square feet. The integrated delivery model includes transaction management, project management, and facilities management across the U.S. and Canada. But what makes the delivery model “integrated” and not a traditional approach to outsourcing?
- A model built around a deep understanding of the clients’ strategic, enterprise objectives
- Integrated account team leadership
- Performance management and KPIs aligned across service areas and focused on transformational outcomes
- Integrated technology, data, and analytics
- Integrated “moments that matter” processes
[Integration]…benefits us greatly. It's been working extremely well. We refined it, and it gets better and better. So yes, I like the integrated platform.
A Deep Understanding of Our Client’s Strategic, Enterprise Objectives
Our client’s expectations were cemented into three key enterprise objectives, which laid the foundation for establishing everything from the account team structure and KPIs, to reporting, analytics and processes. These three objectives guide the CRE and CBRE team daily:- Employee experience
- Customer experience
- Operational excellence
Articulating the “Maximized” Value
In addition to tracking year-over-year value for outcomes like cost savings, carbon reduction and employee engagement scores, value creation is maximized when multiple service lines collaborate to achieve shared goals. The graphic below illustrates a few examples of how our service line teams work together to drive financial value throughout the real estate life cycle and underscores the benefits of integrated delivery.
Project Management + Advisory & Transactions
During site selection, the PJM team is integral to the due diligence process and provides the "trained eye" for any potential issues during site visits (e.g., grading, retention wall work, environmental issues, unforeseen costs, asbestos, exits and egress, plumbing, etc.).
The value of this one team mindset during site selection cannot be overstated—avoiding millions of dollars in capital outlay, risk mitigation, and more.
The value of this one team mindset during site selection cannot be overstated—avoiding millions of dollars in capital outlay, risk mitigation, and more.
Facilities Management + Project Management
During construction, the FM and PJM teams partner to conduct early walk-throughs and site visits. The FM team provides feedback and a “punch list” to the PJM team during the handoff to ensure all issues are resolved prior to project closeout.
And at the 10-month mark post-project close, a best practice is for both teams to regroup and identify issues prior to the first-year warranty expiration.
This collaborative step saves the Bank operating expenses through cost avoidance.
And at the 10-month mark post-project close, a best practice is for both teams to regroup and identify issues prior to the first-year warranty expiration.
This collaborative step saves the Bank operating expenses through cost avoidance.
Facilities Management + Advisory & Transactions
During the lease renewal process, the A&T team partners with the FM team to review and understand the site’s work order history (e.g., potholes, landscaping, tenant improvement requests). The FM team also works with the A&T team to understand the lease abstract in order to input information into the work order system and develop the site budget.
Value is created through stronger leverage in lease renegotiations for TI dollars, as well as assurance that landlords are providing proper services vs putting the onus on the Bank’s FM budget.
Value is created through stronger leverage in lease renegotiations for TI dollars, as well as assurance that landlords are providing proper services vs putting the onus on the Bank’s FM budget.
Solutions CBRE Deployed
From a net zero roadmap to a green leasing strategy, create an approach that reflects your organizations' environmental sustainability ambitions.
Improve office experience and increase engagement with Host, our hospitality-trained staff and technology solution employed by many of the largest bra...
Guide transformational outcomes to create tangible value across your portfolio.
Transforming Real Estate Delivery Models for a New Era
CBRE Institute recently released an article on Transforming Real Estate Delivery Models for a New Era, which includes additional information on how to begin a gap analysis of your current delivery model and why it is important to contemplate change during this particular moment in time for the CRE industry.