Think Profit, Act Property

Citation

Gibson, V. (1999), "Think Profit, Act Property", Journal of Property Investment & Finance, Vol. 17 No. 5, pp. 528-532. https://doi.org/10.1108/jpif.1999.17.5.528.2

This is an unusual publication to review as it sits somewhere between a research summary and an executive briefing. The latter is in fact the aim of this piece: to help raise the awareness of property as a strategic resource. It was produced by the Corporate Occupiers Group, an RICS committee, as their first publication aimed at senior decision makers in both the public and private sectors.

The approach taken is both interesting and informative but leaves the reader with as many questions as answers. From the point of view of valuers and academics, this piece can provide a very strategic introduction into the field of corporate real estate with some concrete examples of the benefits of effective corporate property management.

The paper comprises a brief introduction to the issues considered by organisations that are strategically managing their corporate property. It contends that there is an important balance between the corporate financing question and the operational needs of the business with the best solutions ensuring that both perspectives have been taken into account. This provides a very simplified framework to some key ideas in corporate property management.

The introduction is then followed by four short case studies of organisations that have benefited from an innovative and proactive approach to their property. Each of these has a different theme and resulting lessons. The first focuses on how Chase was able to reduce occupancy costs and consequently affect the bottom line. The second reviews the Department of Social Security and the PRIME project, demonstrating how a partnership approach has led to both a reduction in cost and risk. The third examines the London Borough of Bromley and shows how considering property at the strategic level has led to benefits in terms of both increased income and community gain. The final case study reviews the way Clifford Chance has used the working environment to change working practices and culture. Each case study is summarised into a few key lessons.

The final section of the paper draws off these cases and provides a synopsis of the key requirements for taking a strategic approach, starting with “know your estate” through to “measure performance” Again these are not earth shattering findings but presented in a clear and concise style.

The publication certainly fulfils its aim of raising interest and awareness. It is well produced and laid out, making it accessible to the non‐property reader. It would be a very useful document if you wanted to influence a senior manager or decision maker that your input as a property manager had a greater value than doing a good property deal or efficiently settling a rent review. However, if you want to be able to answer questions which are likely to arise and get real insight into corporate property management, you will need to find a weightier tome. It really is a matter of horses for courses!