By: AJ Magner, Managing Director with JLL
I’m sure you’ve heard. The commercial real estate industry is thriving. In fact, according to JLL, investment sales in the U.S. are on pace to reach an all-time high this year.
To keep your real estate healthy and profitable, portfolio optimization should still be top-of-mind … even in the strongest economic climates.
When you think portfolio optimization, do you think cost cutting or space reduction? Despite initial assumptions, there’s more to portfolio optimization than scaling back in times of trouble.
Rethink Real Estate: The Big Picture
Defined by JLL, portfolio optimization is “a comprehensive process that models real estate supply against real estate demand to drive efficiencies across a portfolio.”
It’s not just about cutting back. In many cases, portfolio optimization has been utilized to justify the need for more real estate.
Taking a step back: As one biggest line items on your business’ budget, it’s vital to approach real estate spend strategically—during the best (and worst) of times. Beyond basic rental and operating costs, your real estate portfolio plays a starring role in employee attraction, retention and overall productivity.
Looking at the holistic, long-term impact of your space, is it adequately meeting the needs of your business?