Ventana Research Analyst Perspectives

Don’t Treat Real Estate as a Fixed Cost

Posted by Robert Kugel on Mar 15, 2012 11:28:08 AM

Financial analysts typically classify real estate as a fixed cost. Strictly speaking, that’s correct, but looking at it this way leads many organizations to overlook and miss opportunities to more carefully manage their real estate and other occupancy expenses. In industries where occupancy or ownership costs account for more than 20 percent of total business expense, taking a more active approach to managing real estate and occupancy can improve a company’s profitability. But in most cases achieving a higher return from money spent on corporate facilities requires some organizational and process changes.

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Topics: Performance Management, lease, real estate, shared services, Operational Performance, Business Analytics, Business Performance, Financial Performance, CFO, Financial Performance Management