By Ameeta Soni
Despite 21st century technology and ever-increasing regulatory oversight, many large corporations are still not entirely sure of what buildings and infrastructure they own. Buildings and infrastructure can consume up to 30 percent of a business’ annual capital outlay; yet organizations are not accurately tracking the condition and value of their assets. Meanwhile, they continue to spend without prioritizing the most critical, at-risk projects.
If a company doesn’t know the value of its own property, then how can it prioritize renovations, sell off or buy the right assets, or give accurate valuation in an acquisition? Part of the problem is that many organizations have thousands of buildings covering millions of square feet. Frequently, however, it’s simply that the company is still using spreadsheets, disparate databases and a filing cabinet to track information on their biggest investment.
A growing number of corporations are approaching the problem in a new way:
- Gathering accurate facility condition data;
- Evaluating the value of assets with industry-standard cost data; and
- Housing the data in the cloud, readily accessible for analysis and decision-making.
The millions of square feet of property held by corporations can be a significant source of operating leverage — provided that corporate real estate teams get a handle on strategic facilities capital planning and management.