Look out

Companies seek to cut costs by outsourcing real estate operations.

Here’s a bit of positive news to emerge from all the gloomy commercial real estate reports and forecasts: The shaky economy has led many businesses to outsource more of their real estate functions than in the past. With companies experiencing tight financial times, many are focusing their efforts on their primary business operations and looking to real estate firms to help them save money through better facilities management. Not only do they want savings, but organizations are also looking for better tracking and analysis of real estate operating costs.

A thorough examination of services provided in a facility can yield several opportunities to save money. For instance, energy expenses might be reduced by switching electricity providers, buying more energy-efficient equipment, educating workers about how to consume less electricity, or some combination of efforts. A company can also often cut expenses by consolidating service providers. Trimming the number of vendors can lead to efficiencies that in turn reduce costs.

Innovative ideas like installing a less water-intensive landscape or decreasing the frequency of janitorial services get the attention of corporate executives, but only if these actions will not adversely affect the image or operations of the firm.

Real estate firms are also boosting the bottom line for companies by helping them maximize their existing space. Many firms are looking for ways to put more employees into smaller spaces or consolidate operations from several locations into one. Given the complexity and ramifications of such decisions, it is not surprising that executives are turning to real estate professionals for guidance.

Illustration © Artville.

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