Real Estate Experts Share Strategies on Reducing Total Cost of Occupancy
Executives from CB Richard Ellis, England’s Investment Property Data Bank, Ball Aerospace & Technologies Corp. Share Insights at ARCHIBUS-hosted Webinar
July 28, 2009 — Boston, MassachusettsWhat is the total cost of your organization’s occupancy?
How can that total cost of occupancy be reduced?
These two most frequently asked questions by C-level executives to their Corporate Real Estate and Facilities Management staffers were addressed by industry experts in a July 28 Webinar hosted by ARCHIBUS, Inc. (www.archibus.com), the Number 1 software developer worldwide of real estate infrastructure, and facilities management solutions.
The Webinar, moderated by Larry Simpson of the ARCHIBUS Real Estate Center of Excellence, focused on money-saving strategies from categorizing and evaluating costs and developing benchmarks, to defining acceptable costs and exploring proven ways to dramatically lower an organization’s total cost of occupancy (TCO).
The most productive cost-reducing strategies and tactics were explored by featured speakers Christopher Hedley, Director of England’s Investment Property Data Bank; John Kuxhausen, Facilities Project Planner, with Katie French, Business Analyst, Ball Aerospace & Technologies Corp.; and Sven Pole, Senior Managing Director, Global Corporate Services, CB Richard Ellis.
The TCO quartet was joined by ARCHIBUS Chief Technology Officer Steve Segarra, who explained how a comprehensive Integrated Workplace Management System (IWMS) can accurately measure, track, and reduce those costs.
“Today, every major company is focused on reducing costs,” reported Pole. “Because real estate typically is one of the largest operating expenses for a firm, an aggressive Occupancy Cost Reduction program can materially impact the bottom-line. There are six proven strategies to consider — space reduction, market timing, capital structures, reduction of operational expense, outsourcing, and labor/location strategies. How is your firm doing?”
Management boards, added Christopher Hedley, need a single number for the Total Cost of Occupancy rather than getting lost in the detail of real estate and facility costs.
“TCO is that single number,” said Hedley. “It explains the total resource cost of CRE simply and quickly, forcing your organization to acknowledge the holding costs of an owned building and all the costs of running a building.”
“TCO,” concluded ARCHIBUS’ Larry Simpson, “is a transparent and sensible basis for creating high-level business-related performance indicators and for setting and communicating cost optimization targets for corporate real estate departments.”
The Webinar was recorded and can be heard at www.archibus.com/webinar beginning on July 30.
About ARCHIBUS, Inc.
ARCHIBUS is the #1 global provider of real estate, infrastructure, and facilities management solutions and services with the total annual expenditures for ARCHIBUS-related products and services exceeding $1.7 Billion (USD). Through effective innovation and business transformation, ARCHIBUS users save their organizations over $100 billion annually. With ARCHIBUS, organizations can use a single, comprehensive, integrated solution to make informed strategic decisions that optimize return-on-investment, lower asset lifecycle costs, and increase enterprise-wide productivity and profitability. ARCHIBUS is the world-wide proponent for the creation of ubiquitous environmental sustainability.
ARCHIBUS is the #1 TIFM (Total Infrastructure & Facilities Management) solution in the world. More than 4,000,000 ARCHIBUS enterprise and Web users collectively manage over 5,000,000 properties, with organizations reporting facilities-related cost savings as high as 34%. With over 1,600 ARCHIBUS Business Partners, local and regional support worldwide is available in over 130 countries and in over two dozen languages. Headquartered in Boston, Massachusetts, ARCHIBUS, Inc. has pioneered computer-aided infrastructure and facilities management technologies since 1982. For more information, visit archibus.com.