Strategic Planning & Portfolio Management
The client’s real estate function was historically decentralized. Lots of different individuals were responsible for leasing space for the various business units. At the corporate level, they weren’t sure what they had and what it was costing.
The solution was a real estate audit and inventory. Information was collected for the existing portfolio. Errors and omissions in both the legal documentation and financial records were identified and corrected. Finally, an on-line database was established containing all of their real estate portfolio’s information, including scans of legal documents.
When the project was complete, the client knew what they had, where they had it (don’t laugh), and had a handle on their occupancy costs. Now, when they need to make a decision, they are working from current and accurate information.
The client had an intuitive understanding that its current real estate portfolio did not contain the locations and facilities it would need to be effective and competitive 10 years from now. The question it was grappling with was how to get from point A (the present) to point B (the future).
The solution was the development of a real estate action plan. The existing sites were inspected, the relevant legal and financial documents reviewed, the real estate market assessed, and then year-by-year sets of recommendations were made on which sites to leave, expand, or hold.
The client now knows which sites will be able to carry them into the future, and which sites will not. Most importantly, they now have a plan for replacing those locations which are not supporting their business objectives.
The client was seeking a new site where it could expand an existing primary care practice, open a new urgent care center, and co-locate other specialty practices and ancillary services. Commercial real estate brokers and developers were pitching lots of potential sites. The client needed to cut through the marketing and find the best solution for its needs.
The solution was to hire an independent fee for service healthcare real estate advisor. RE-Advisors wrote an RFP for the space requirement, developed a set of metrics on which to evaluate the proposals, recommended a solution, and then negotiated both a letter of intent and the lease documents on behalf of the client in conjunction with outside counsel. The client felt it benefited substantially from an unbiased experienced advisor. Best of all, the landlord passed the savings of not paying a tenant’s broker onto the client, an amount which dwarfed the actual fee paid to the advisor.