Use Portfolio Analytics to Provide Detailed Breakdown of Real Estate Performance

Since cost of occupancy represents one of the top expense line items, companies are actively looking for ways to squeeze more efficiency out of their real estate holdings. The problem is that real estate occupancy expenses occur in a number of different places in the organization, making it difficult for managers to see the whole picture. In addition, accounting systems frequently lump occupancy expenses into just a few, top-line categories and fail to provide managers with the detail needed to identify inefficiencies, develop cost saving initiatives and monitor success.

It’s no wonder then that it is extremely difficult – if not impossible – for real estate professionals to measure and analyze real estate utilization and operating costs. You need to be armed with vital, integrated intelligence about the entire portfolio so you can make impactful decisions that:

• Find and eliminate excess expenses
• Increase efficiency of space in use
• Identify surplus space in the portfolio

Good real estate decisions that result in occupancy cost reductions can only be made if you can readily report on KPIs (Key Performance Indicators) and metrics across your entire portfolio and sub-portfolio. VP Corporate Edition helps corporate real estate teams reduce occupancy costs with powerful portfolio analytics that help define metrics to track location performance versus targets, realize savings from real estate expense audits and identify underperforming real estate assets. Analytics and metrics include:

• Operating costs allocations to internal customers (divisions and business units)
• Benchmark performance ($/SF) for various space types (office, warehouse, retail, etc.)
• Identification of buildings with excessive costs for the market location
• Utility usage and costs
• Utilization metrics ($/FTE; SF/FTE; Revenue/SF, Avg. Employee Cost/Location)
• Audits of CAM/Pass Through charges