- 32 years experience in commercial real estate transactions and development
- Founder and Principal of The Mehigan Company, Inc., providing transaction management, project management, operating expense and project audits, database design, toolkit development and incentives recovery services
- Clients range from small/mid-size companies (DASSE Design, Prange Law Group, PMC-Sierra) to Fortune 500 corporations (Cisco Systems, Apple, J.P. Morgan Chase, AT&T, The Clorox Company, McDonalds)
- All 7 Best Practices
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- Post-Meeting Engagement
Corporate Real Estate - Transaction Management
For global corporations like Apple, Cisco and JP Morgan, it is not surprising that the second-largest line item, after the fully-loaded costs of employees, is the cost of real estate facilities and services. But this is also true for nationally-known companies, local start-ups and even two-person LLCs.
Better known as Transaction Management of Corporate Real Estate (CRE), this fairly simple term describes a complex set of actions:
- Negotiating a new lease or terminating or renewing an existing lease;
- Determining space criteria in terms of size, location, look and feel;
- Selecting a site or multiple sites;
- Weighing the pros and cons of buying or leasing a space;
- Implementing tenant improvements;
- Managing “space enhancement” projects with multiple players (top management, employees, IT, external vendors, tenant reps, contractors, architects).
CRE Transaction Management is a key component of a company’s financial performance, and as you can see, goes far beyond the simple act of signing a lease. If executed properly, each of the above actions can have a positive impact on an organization’s net operating income.
Yet most companies lack the necessary internal infrastructure and skill sets to realize successful CRE transactions. They also tend to overlook the importance of understanding and implementing standards and processes for occupying space and tracking their current holdings. More often than not, companies tend to outsource these functions and end up paying an unfortunate price – exorbitant commissions, conflicting interests, inexperience, and at the end of the day, overall dissatisfaction.
But with proper leadership, experience and knowledge of the many dimensions of CRE Transaction Management, companies can strengthen their processes and cut costs while improving their standards, operations and critical bottom line.