Asset Positioning — Aligning Your Real Estate and Financial Resources With Your Mission

Most organizations have 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.

To avoid this, organizations can take a strategic look at their real estate inventory, physical space needs, and financial resources to determine how best to maximize limited resources. The goal is to align these resources with an organization’s mission and needs.

This process, called asset positioning, uses an objective and disciplined approach that guides an organization though evaluation, decision making, and implementation. Key components of asset positioning are as follows:

• 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 existing facilities.
• Evaluate future capital required for existing facilities and other projects.
• Evaluate alternatives (keep, sell, renovate, build, lease, etc.).
• Reach an informed decision on the best course of action.
• Identify roles and responsibilities for implementing decisions.
• Execute and manage the transition.

By objectively evaluating needs, organizations avoid common pitfalls such as trying to utilize an existing building that may not be economically adaptable. There may also be instances in which real estate holdings have appreciated in value where selling and reinvesting proceeds elsewhere may be more advantageous for an organization.

Insightful planning and implementation ensure that an organization uses its assets in the most appropriate manner in support of its ongoing mission. For more information on asset positioning and how this can benefit your organization, please contact Bev Erickson, from Plante & Moran CRESA at 248.223.3568.

Plante & Moran CRESA, LLC, an affiliated partner of Plante & Moran is a real estate advisory firm that exclusively represents tenants/space users, and specializes in the delivery of fully integrated real estate services.