What do you do if your Corporate Real Estate decisions are not based on logical reasoning?

1 Assess Impact

If you suspect that your corporate real estate decisions are not logically founded, the first step is to assess the impact of these decisions. Review your portfolio and identify any choices that seem out of sync with your company's strategic goals. Examine how these decisions have affected your financials, operations, and overall market position. Are there leases signed at above-market rates, or properties purchased that are not yielding the expected returns? Understanding the consequences will help you prioritize which decisions need immediate attention and set the stage for rectifying any missteps.

2 Seek Feedback

Once you've identified the potentially illogical decisions, it's vital to seek feedback from various stakeholders. Talk to your team members, especially those with expertise in finance, operations, and real estate, to get their perspectives on the decisions in question. They may offer insights into why certain choices seemed reasonable at the time or highlight factors you may have overlooked. Engaging with a diverse group of colleagues can provide a more rounded view and help you understand the rationale behind your CRE decisions.

3 Analyze Data

To move forward, you must ground your real estate decisions in data. Gather all relevant information, including market trends, property valuations, and lease analysis. Compare this data against your current portfolio to spot discrepancies between what is and what should be. If data analysis isn't your strong suit, consider working with a corporate real estate analyst who can help interpret the numbers and provide actionable insights. The goal is to replace uncertainty with clarity, allowing you to make informed decisions that are backed by solid evidence.

4 Revisit Strategy

With a clearer understanding of where your decisions may have strayed from logic, it's time to revisit your corporate real estate strategy. Evaluate your long-term goals and ensure they align with the current economic landscape and your company's growth trajectory. Adjust your strategy to reflect both the lessons learned from past mistakes and the insights gained from data analysis. This might involve divesting from non-performing assets, renegotiating leases, or shifting focus to new markets.

5 Implement Changes

After revising your strategy, you must take decisive action to implement changes. This could involve restructuring your real estate portfolio, changing your approach to lease negotiations, or adopting new technologies for better property management. Ensure that your team is on board with these changes and understands the rationale behind them. Clear communication and strong leadership will be key in successfully pivoting from past decision-making patterns.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?