In chapter 4, which addresses the property life cycle, three phases are

identified: acquisition, holding period, and disposition. The holding period, or retention period, is the time the space is held by the corporation, and it is in this phase of the property life cycle that facility management (or facilities management, sometimes abbreviated as FM) comes into play.

A discussion about how corporate real estate organizations deliver services to the corporation and internal business clients starts with how the corporate real estate department “fits” within the overall corporate enterprise. What is the operating model? Is responsibility for corporate real estate centralized in a single department? Or is it decentralized, at least in part, with some functions delivered through various business units or other parts of the corporation? And does corporate real estate have a “mandate”? In other words, must the business utilize the services of the corporate real estate organization?

From a finance perspective, real estate can be both an asset and a liability. It also can represent a significant cost center for many organizations. In order to make real estate decisions or recommendations to company leaders, real estate executives need to fully understand the financial risks. What is the potential value and cost both today and in the future? Such

financial analysis can relate to the acquisition and disposition of property, leasing or renewal decisions, new construction and capital expenditure projects, and the ongoing operation of real estate.

The Essential Guide to Corporate Real Estate: Chapter 5 - Real Estate Transactions and Leasing by CoreNet Global's What's Next Podcast

This chapter looks at the impact of the entire property life cycle—

from concept to retirement—on the corporate portfolio. At both the property and portfolio levels, the real estate life cycle generally runs from acquisition through the length of its holding period to the disposition of space at the end of its economic usefulness (including remediation if necessary).

This chapter provides an introduction to the corporate real estate

profession. It is divided into three sections, with the first section offering a definition and overview of corporate real estate and highlighting how the traditional role of corporate real estate is changing. Section two discusses the structure of corporate real estate within organizations, and section three discusses the corporate real estate profession.

Years ago, senior corporate real estate executives could be considered

successful leaders if they simply delivered projects ahead of schedule and under budget. While these abilities are still valued, much more is required today, when both the demands upon and the opportunities before corporate real estate are significantly greater.

Portfolio management is a relatively recent discipline within corporate real estate. Initially begun in the 1990s within large firms, the principles underlying portfolio management have since been adopted across the profession. The goal of portfolio management is to be more intentional and proactive and to secure a long-term view of a company’s real estate assets, given that they typically rank among the top three expenditures of the corporation.

The purpose of this chapter is to help corporate real estate professionals better understand the numerous factors that influence site selection and location decisions for organizations. It also will provide some resources and guidelines to help corporate real estate professionals navigate the often highly complex site selection process.

As multiple pressures bear down on today’s corporations—constrained

budgets, the difficulties of attracting and retaining talent, the need

to adopt sustainable practices—the organization’s infrastructure and support services are expected to perform more efficiently and in more innovative

ways.