L3 Office Relocation Strategy Flashcards
(6 cards)
What is benchmarking?
Benchmarking in strategic real estate is the process of comparing the performance, costs, or operational metrics of a property portfolio against industry standards to inform decision marking and improve outcomes.
What are some different types of benchmarking?
Types of benchmarking include:
1. Financial Benchmarking: comparing rental income, operating expenses
2. Operation Benchmarking: Comparing space utilisation (e.g. sqft per employee), maintenance costs - helps occupiers optimise workplace efficiency and reduce overheads
3. Sustainability Benchmarking - rent incentives, vacancy rates
What are some benefits of benchmarking?
Supports evidence-based decision making
Identifies inefficiencies
Enhances transparency and accountability
What is the outcome of their relocation project?
Secured new London office at a lower cost than their previous office
Maintained staff retention/satisfaction – due to choosing location with worked
Brand identity – took a whole building able to use their own office to create strong brand identity
How does the office relocation link in with the wider real estate strategy?
Global cost cutting business strategy on minimising property related costs as a wider operational cost reduction exercise
Why is this important? What would be the implications if the office was located far away from the employees / supply chains etc? I would use this to explain your advice.
The location of an office in relation to employees, supply chains, and client bases is critical from both an operational and strategic perspective. If an office is situated far from its workforce, it can significantly affect staff retention, recruitment, and productivity. Long commutes may lead to higher turnover, reduced morale, and increased absenteeism. Strategically, this undermines the organisation’s ability to attract and retain talent, which in turn impacts long-term performance.
From a supply chain perspective, being located far from key partners, distributors, or logistics hubs can lead to inefficiencies, increased transport costs, and extended lead times. This reduces flexibility and responsiveness, particularly for businesses operating in just-in-time models or service-based sectors where client proximity is crucial.
In providing advice, it’s important to align the real estate decision with the client’s operational needs and business strategy. A well-located office enhances accessibility, supports employee wellbeing, and optimises logistical efficiency—ultimately contributing to competitive advantage and cost-effectiveness over the lease term.
