Asset Positioning — Strategies for Excess Property
School Advisor , 2006 Issue No. 2 

What Does This Mean for Schools?

Every district has a collection of assets which may include land, buildings, cash, and investments. Unfortunately, the carrying costs of underutilized real estate assets can deplete an organization’s overall operating resources.

Utilizing a process called Asset Positioning, schools can take a strategic look at their real estate inventory, physical space needs, and financial resources to determine how best to maximize limited resources in fulfilling their objectives. The goal is to align their needs, resources, and mission.

The Asset Positioning process begins with an objective evaluation of the type of space needed for both the shortand long-term needs. Needs are then compared to current real estate holdings, cash available for investment, and other ways in which the organization can access facilities in a cost effective manner over the appropriate time horizon.

Often, schools own real estate that is underutilized due to changing enrollment or functional obsolescence. By objectively evaluating needs, the process avoids common pitfalls of trying to fill up a building just because it exists. There may also be instances in which real estate holdings have appreciated to a value where selling and reinvesting proceeds elsewhere may be beneficial.

The Asset Positioning process employs an objective and disciplined approach that guides an organization through evaluation, decision making, and implementation.

Key Components of Asset Positioning 

• Quantify the short- and long- term space needs for a defined set of services aligned with an organization’s mission
• Evaluate current real estate holdings to determine potential market value
• Evaluate future capital required for existing facilities
• Evaluate alternatives — keep, sell, renovate, lease, other
• Reach a decision on the best course of action
• Identify roles and responsibilities for implementing decisions
• Execute and manage the transition

Insightful planning and implementation ensures that a district utilizes its assets in the most appropriate manner to support their ongoing mission. For more information on how Plante & Moran CRESA’s Asset Positioning Services can benefit your school district, please contact Greg VanKirk at 248.223.3395.