Apr 2, 2012 9:32:00 AM

3 Ways Improve Utilization of Your Commercial Real Estate Portfolio

By Jordan Slater

commercial real estate portfolio

In order to continuously get the most out of every dollar, assessing your commercial real estate portfolio is absolutely essential. How is your EBITDA measuring up to your projections?  Have you been successful in lowering your real estate expenses?  There are several ways to improve the utilization of your properties.  Here are a few:

 

Lease Evaluation

Current market conditions have left major cities and CRE hubs saturated with many empty buildings and no one to lease them. This is a great time to explore renegotiating any of your older leases.  There is a good chance that for these properties, you arepaying over-market rents.  Check your expiration and renewal dates to see what can be done and whenl andlords can’t afford to lose tenants, especially the good ones.  Now could be the time to take advantage of this leverage.

 

Real Estate Strategy

Take a look at your commercial real estate portfolio from a different angle.  Perhaps you have been looking for the best deals, without focusing much attention on the relationship of individual sites and your entire portfolio.  Or maybe they way you use your sites have changed since the signing of your leases.  Strategic commercial real estate is a growing concept in CRE.  Consider, within your portfolio, the complimentary and supplementary qualities of each of your sites.  It is sometimes important look at how sites can be used to serve clients and customers more efficiently.  Is the location still as good as it once was for the type of business?

 

Site Assessment

If you are planning to expand in the next 5 years, will you have enough space to absorb?  Are any changes to the layout of the building, or renovation necessary to make it more efficient?  Would the improvement be worth the expense and the cash?

 

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Topics: Commercial Real Estate Portfolio

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Jordan Slater