Maximize the Value of your Real Estate Assets

With ARCHIBUS Strategic Financial Analysis

Maximize the Value of your Real Estate Assets

Go Beyond Lowering Your Costs, Creating Value through Your Real Estate Portfolio

While organizations have awakened to the impact that their real estate portfolios impose on annual costs, many have not yet made the leap from a portfolio strategy that controls costs to one that also creates value.

There is growing awareness that, being so integral to operations, facilities impact the bottom line on a deeper level than cost-persquare- foot. However, the data needed to understand exactly what that impact is, how it happens, and what to do about it, has been elusive until recently.

The ARCHIBUS Strategic Financial Analysis (SFA) application unifies all of the financial and operational data related to your real estate assets, so every asset can be evaluated for its true cost alongside its strategic importance to your mission. This way, operational and financial roles can collaborate to allocate resources where they are needed most, and maximize returns.

Use Fixed Assets to Support Operations, Drive Productivity, and Create Value

> Lower costs
> Expedite budget approvals
> Learn from outlier data
> Target capital spend
> Predict outcomes
> Prescribe solutions
> Increase productivity
> Monitor effectiveness of investments

geographic information system

The Gap Between Cost and Value

While financial data is key to cataloguing the cost of assets, these numbers do not sum up their value to your organization. Believing otherwise has often yielded catastrophic consequences, where organizations crippled productivity by sacrificing something critical in an attempt to generate savings.

In a climate where adding value is as important as efficiency, financial data alone cannot answer the key questions facing organizations today.

When one invests in a building, cost data does not inform decision-makers, regarding:

  • Occupancy
  • Capacity
  • Location
  • Condition
  • Wellness of Occupants
  • Health/Safety Compliance
  • Maintenance Needs Suitability of Purpose

Community Impact All of these are drivers in supporting business continuity, customer/ client relations, talent retention, productivity, facility operations, and even branding. Without a view of how these operational factors relate to financial cost, decision-makers do not have a complete picture of their enterprise.

Hidden Risk in Real Estate

Real estate is one of the top three biggest expenses for most organizations, with facilities representing, on average, more than 30 percent of operating costs

While these assets consume significant resources, they often do so inefficiently. Real estate is complex, with risks that are hard to quantify because: • Real Estate is not divisible

  • Every property has unique characteristics
  • Operational costs are not easily understood without a value statement
  • Acquisition and disposal have frictional costs
  • Data is fragmented or hard to access

Volatile currency changes and political swings will continue to generate economic pressure. Also, changes in international accounting standards for leased real estate over the coming two years will affect more than $3.3 trillion in global lease commitments while, at the same time, expose real estate to greater scrutiny from the C-suite, boards, lenders, and investors.

These information complexities and shifts are only on pace to become more perilous if left unchecked in the coming decade.

Strategic Financial Analysis

Plug the Gap with Strategic Financial Analysis

Information Technology (IT) advancements and refinements now enable organizations to plug information gaps with data integrated from other sources. So you can be more effective than ever before, SFA allows you to comprehensively account for your assets’ true total costs, contextualized and prioritized by operational relevance.

Connect Stakeholders

Unify the perspectives of different stakeholders into a common operating picture, so you can detail the impact of spending and investment from different viewpoints. Finance professionals, capital planners, facility directors, and operational managers can now harmonize their role-driven perspectives into an optimal and cohesive strategy.

Invest Where You Need It Most

Invest in the right assets for the right team at the right time. To make better decisions, view cost figures side-by-side with operational information, including condition assessments of these assets, resulting in a clearer understanding of their role and criticality. An interactive map and easy-to-use interface make it simple to drill down to allocation, cost, capital project, and lease information details.

360 View of Total Cost

Analyze capital and expenses from multiple perspectives, including total cost of occupancy, total cost of ownership, and work point cost. Cost of capital, appreciation, depreciation, financing, disposition costs, total mortgage and lease obligations can be grouped and examined alongside rent and operational costs, depending on your immediate needs.

Drive Productivity with Accountability

Compare facilities of different sizes by comparing their operating cost by gross area, rentable area, and seat count using standard units for each metric. Then compare benchmark costs against organizational targets, and pinpoint outliers. SFA’s dashboard and reporting will identify underperforming assets that can be targeted for remediation, and present over-performing assets that can be used as models for standardizing best practices.

Create an Agile Digital Workplace

SFA is the top layer of a new digital workplace strategy for enhancing employee engagement, leveraging experience, and achieving productivity improvements. Its reach and effectiveness can be expanded with the addition of other ARCHIBUS applications, providing ever more granular data.

ARCHIBUS Enterprise Information Modeling (EIM)™ provides the common operating picture that unites operations with strategy. Use EIM and the ARCHIBUS suite of integrated applications to connect operational with strategic functions. ARCHIBUS rolls up operational results to top-level business intelligence that can inform strategic direction. Likewise, strategic direction is communicated to operational functions so all departments are focused on the larger mission.

To maximize its benefits, make SFA the center of an integrated suite of specialized ARCHIBUS applications, including:

  • Strategic Space Planning
  • Capital Budgeting
  • Preventive Maintenance
  • Portfolio Management

Relevant Technologies

Mobile

Create a more agile, comprehensive, and paperless system for collecting data with mobile data input, directly from the field.

Internet of Things

Automate data feedback from connected devices and sensors, perform data analytics, visualize results, and present opportunities in ways that are now possible with the integrated ARCHIBUS application suite.

Scenario Modeling

Project ahead by modeling potential scenarios that quickly analyze potential outcomes, visualize the available alternatives, and help you choose the best path forward.

BIM

Navigate 3D models of your facilities and assets. Pull up support data by interacting directly with your models and view how every space, system, and asset in your buildings work in relation to each other.

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