6 steps to get started with portfolio optimization

Most business leaders can visualize an ideal real estate portfolio. It has just the right amount of space in the right locations for employees and customers. That space is designed to boost productivity, encourage collaboration and spur innovation. And it’s agile, so you can grow and reorganize your footprint as business needs change.

In many companies, that vision can seem like a pipe dream, but it doesn’t have to be. With smart strategies, centralized data and a skilled team, it’s possible to transform your real estate portfolio into an engine for growth, resilience and impact.

This checklist will guide you through the first steps you need to take to get more value from your portfolio.

1) Get a single source of truth

Leases are chock-full of critical information needed for financial reporting and to develop real estate strategies. Yet, you may have hundreds or thousands of leases, sometimes in different terms or languages. Without a central repository for your lease data, it can take days or weeks to compile information when you need it, and it’s impossible to get a full understanding of your portfolio.

Consolidating all that data in one place provides instant insight into the current state of your portfolio, so you’re always equipped with the latest and greatest information. You’ll be empowered to uncover cost savings opportunities, mitigate risks and make decisions based on what’s happening in your portfolio today.

If your data currently lives in spreadsheets in different formats, it’s time to bring it all together. A lease administration partner can give you a jump start by providing access to leading technology platforms and automated processes to efficiently abstract your lease data into a central database. Prioritizing data accuracy and governance will build trust in the data and confidence in your strategy.

2) Track critical dates

Once you have all your data in one place in a consistent format, you need to use it. Your team should regularly review the critical dates report to ensure that you don’t miss important deadlines like lease renewals or terminations.

With a head start on renewals and relocations, you’ll be equipped to make stronger decisions about how to set up your portfolio to achieve long-term business growth and competitive advantage. Plus, you’ll have an edge in negotiations and save money.

Centralizing your transaction management function ensures that you have someone keeping an eye on critical dates across the entire portfolio. Having the right technology helps, too. Implementing a system with automated alerts, custom reports and dashboards will help your team stay on top of everything so they can spend their time identifying opportunities and managing risks.

3) Align business goals with portfolio strategy

Real estate plays a powerful role in attracting and retaining talent and reaching customers, but you can’t shape your portfolio to support these goals if you don’t know where the business is headed.

Planning to expand? You’ll need enough space in the right markets to house new employees and gain a competitive foothold.

Looking to maintain or improve your space usage rates? Right-size your portfolio to make sure you put your dollars where they matter most.

A close relationship between the C-suite and corporate real estate (CRE) leader is vital to aligning real estate to business goals. A strategy consultant specializing in real estate can facilitate conversations with stakeholders across the business. They’ll serve as your partner in translating the business vision into real estate strategy and providing a roadmap to get there.

4) Figure out what your people want and need

When your spaces are designed to create an exceptional human experience, they are more likely to be used, delivering a stronger return on investment. Great workplaces attract talent and lead to a happier, more productive and engaged workforce.

Talking to the people who use and manage your spaces reveals unique insights into what your talent needs to feel supported, productive and fulfilled — whether that’s through surveys, focus groups, test spaces or other engagement methods. Considering work styles, employee desires, commute times and the visitor experience will help you build a stronger portfolio

5) Look at the big picture

With a unified portfolio strategy and goals, you can start looking at lease renewals as connected events instead of one-off transactions. When you take a proactive, holistic approach to managing your portfolio, you’ll make greater progress toward your long-term enterprise goals.

Armed with portfolio-wide analytics, your centralized transaction management team will be able to connect the dots across your portfolio. Ideally, they’ll pair lease data with space utilization data, industry benchmarks and landlord insights. That way, you can make decisions based on how you’re using your space today and where the market is heading.

For example, if multiple leases at properties owned by the same landlord are coming up for renewal, you may be able to use that information to negotiate a better rate or property improvements. Or if leases at two underperforming locations expire around the same time, it may make sense to consolidate.

6) Keep your finger on the pulse

The world of CRE is constantly changing. The economy and market conditions shift rapidly. The way people work continues to evolve. And emerging technologies continually offer new, efficient ways to manage your portfolio. Keeping tabs on market trends can help you continually refine your portfolio strategies to get and stay ahead of the competition.

An experienced real estate partner can fill you in on trends and changes, using data, market intelligence and insider insights that empower you to decide when it’s time to adjust and leverage change to your advantage.

JLL’s Portfolio Services team unites professionals with deep experience across Consulting Services, Lease Administration and Transaction Management in one integrated team, supported by advanced analytics and technology.  From developing visionary enterprise-level strategies to rolling them out at the market level, we empower you to reimagine your portfolios as a strategic advantage that ignites innovation, sustainability and the human experience.

Ready to enhance your portfolio? Contact us today.