The term “CRE strategy” has become prevalent recently. CRE, Corporate Real Estate, is real estate owned or leased by a corporation for the purpose of conducting business activities such as:
- Operation as business facilities including head offices, branches, sales offices, retail premises, plants, research laboratories, etc.
- Rental properties such as condominiums and office buildings, employee benefit facilities and managed properties such as staff accommodations and corporate dormitories, as well as recreational facilities, idle land and parking lots.
- Leased properties for business operations
Simply put, CRE includes every property that is necessary for business operations.
When you take a look at your corporate real estate, you will notice that it constitutes a great portion of your company’s assets.
Many of today’s business leaders recognize the need for a solution to maximize the potential profitability of corporate real estate and leverage it to improve business management. Generating profit does not necessarily mean selling off properties. In some cases, leasing or taking a different operating approach may be a more profitable solution. Increasing the overall value of corporate real estate will also lead to higher corporate value.
A CRE strategy uses corporate real estate as leverage for more profitable business management. Therefore, when laying out a CRE strategy, it is essential to align it with the corporate business operation strategy.
- It is essential to apply a comprehensive, best-fit solution specifically designed for each property.
This may include selling off idle land or building a retail premise on an underutilized parking lot.
