Strategic Real Estate Consultancy L1-L3

Question 1

What do you consider to be strategic?

Answer 1

Utilising real estate as a tool to achieve business objectives

Question 2

Can you give me some examples of RE strategies?

Answer 2

Optimising to reflect headcount changes, relocating offices based on business needs, acquisitions/disposals, re-gearing leases to optimise costs where market conditions allow

Question 3

How do real estate strategies help business performance?

Answer 3

RE is one of the largest costs for businesses, so effectively managing a portfolio helps to ensure that RE supports business functions, employee satisfaction, improves revenue, business image etc

Question 4

How might you measure the impact of RE strategies on business performance?

Answer 4

Looking at profit over percentage of costs, employee satisfaction & retention (employee surveys)

Question 5

Why is it important for real estate to align with wider business strategies?

Answer 5

It can support revenue and growth targets, position the business close to customers/transport links or in sector ‘hub’ locations

Question 6

Which different stakeholders might you deal with?

Answer 6

Corporate Real Estate teams, CFO, local business leaderships

Question 7

Can you explain a corporate RE strategy that you developed?

Answer 7

Identifying opportunities to optimise costs through leveraging market conditions, helping to acquire/dispose of properties to align with business strategies, consolidating offices

Question 8

How do you ensure you thoroughly understand each client’s organisation / carry out due diligence and tailor your advice to their RE strategy?

Answer 8

Through stakeholder engagement/setting up calls, understanding their long & short term goals, researching online and reviewing their business plan

Question 9

What could be a company long/short-term goal that relates to RE?

Answer 9

Re-branding, staff retention, growth, consolidation

Question 10

What are the benefits of undertaking stakeholder interviews?

Answer 10

Helps to establish business requirements, local issues, preferences.
Supports in change management if relevant stakeholders are involved throughout the process, strategies are more likely to be supported and implemented

Question 11

How would you say an external consultant can add value?

Answer 11

Maintain a consistent relationship with the client, supporting a client team that may not have a RE background, and provides a holistic approach when supporting portfolio strategies

Question 12

How can the efficiency of real estate be measured?

Answer 12

Utilisation rates, costs per unit rate, sq ft ratio, benchmarking

Question 13

What did you learn on CPD regarding the future of real estate following the pandemic?

Answer 13

Rise of hybrid working/flexibility and increased focus on health & wellbeing, flight to quality

Question 14

What do you mean by leveraging the property throughout the market cycle?

Answer 14

For example, re-gearing leases to optimise costs where market conditions allow

Question 15

Why do companies need strategic support and advice?

Answer 15

Companies need strategic support and advice to support their business plans and reach their corporate goals. Real estate is often a company’s biggest cost and is crucial to their operational performance in terms of staff and management.

Question 16

What are examples of real estate strategies that could be put in place?

Answer 16

Examples include cost-saving initiatives, portfolio optimization (looking at underutilized offices or high-cost locations), and addressing upcoming lease events in a timely manner to negotiate and explore alternative options.

Question 17

How can current market conditions be used to a business advantage?

Answer 17

Currently, many businesses have underutilized offices due to the pandemic, allowing them to scale back their real estate portfolio and save costs. Companies can also take advantage of changing work policies post-pandemic.

Question 18

Can you summarize the webinar on the portfolio Golden ticket?

Answer 18

The webinar discussed the elasticity of portfolios and how businesses can look at more flexible options to support the impact of the pandemic, which led to underutilization of offices. It mentioned the Desana model which allows companies to book into a range of offices based on where and when staff need them.

Question 19

How can current market conditions be used to a business advantage?

Answer 19

Currently, many businesses have underutilized offices due to the pandemic, allowing them to scale back their real estate portfolio and save costs. Companies can also take advantage of changing work policies post-pandemic.

Question 20

Your L2 Portfolio Optimisation example, can you explain this example?

Answer 20

Conducted a portfolio optimisation analysis for a national portfolio. Clients objectives where to identify offices where cost saving opportunities could be achieved. I compiled the evidence for each property and prioritised those with lease events within the next 2 years. I consulted national agents and internal reports. Focused on opportunities of negotiation of lease terms.

Question 21

Your L2 Portfolio Optimisation example, what was your role in this?

Answer 21

Manage my client’s portfolio prioritising those on a lease event basis.

Question 22

Your L2 Portfolio Optimisation example, Client were your clients objectives?

Answer 22

Identify offices for cost saving.

Question 23

Your L2 Portfolio Optimisation example, Did they have KPIs to meet?

Answer 23

To save costs on 5 out of 20 offices

Question 24

Your L2 Portfolio Optimisation example, What were your recommendations?

Answer 24

Renegotiation and consolidation

Question 25

Your L2 Portfolio Optimisation example, What was the Outcome?

Answer 25

Identified 5 locations where cost saving could be achieved (3 consolidation & 2 renegotiation)

Question 26

Your L2 Portfolio Optimisation example, Who was your client here?

Answer 26

Large corporate client

Question 27

Your L2 Portfolio Optimisation example, What were the client's goals in having you review their office portfolio?

Answer 27

As real estate is often a business's highest cost, they wanted to look at cost-saving opportunities within their properties.

Question 28

Your L2 Portfolio Optimisation example, How did you do that?

Answer 28

We used a system called Client Hub to view the portfolio and prioritised lease events coming up within the next two years. We focused on renegotiation opportunities and where conditions might Favor revised agreements (regears, terms, dilaps).

Question 29

Your L2 Portfolio Optimisation example, What market conditions would those be?

Answer 29

Conditions such as underutilised office space where we could renegotiate to consolidate into a smaller demise or relocate.

Question 30

Your L2 Portfolio Optimisation example, What were some of the key achievements from that analysis?

Answer 30

It led to areas of opportunity for consolidation, mostly into serviced office space. It also included a regear of a site.

Question 31

Your L2 Portfolio Optimisation example, Were there any locations in particular that were struggling or not being utilised, and why?

Answer 31

Your L2 Portfolio Optimisation example, The Oxford office was particularly underutilized due to the impact of COVID-19 and the company's flexible working policy. They needed about half the space, so we recommended reducing their footprint in Oxford.

Question 32

Your L2 Commute Analysis, Oxford example, Can you explain the commute analysis you did in Oxford?

Answer 32

The analysis involved using a commute tool to analyse travel times for employees based on anonymous postcodes provided by the client. The goal was to identify employees with commutes over 60 minutes, which was considered a critical factor. The report summarized the impact of relocating the office

Question 33

Your L2 Commute Analysis, Oxford example, Who was your client here?

Answer 33

Large corporate client

Question 34

Your L2 Commute Analysis, Oxford example, What was your role?

Answer 34

Review client’s portfolio to conduct a commute analysis.

Question 35

Your L2 Commute Analysis, Oxford example, What were your clients objectives?

Answer 35

Oxford had outgrown their space and needed to recruit new talent

Question 36

Your L2 Commute Analysis, Oxford example, What were your Clients KPIs?

Answer 36

80% of employees within an hour’s commute of the office.

Question 37

Your L2 Commute Analysis, Oxford example, What was your reccommendation?

Answer 37

Consolidation was not viable.

Question 38

Your L2 Commute Analysis, Oxford example, What was the end outcome?

Answer 38

Expanded in current serviced office (adjacent office)

Question 39

Your L2 Commute Analysis, Oxford example, Why would consolidating RE benefit the business?

Answer 39

Generate efficiencies and easier management, cost-savings via quantum of space. Brings teams together.

Question 40

Your L2 Commute Analysis, Oxford example, Who were you reporting to?

Answer 40

Head of RE, CRES team

Question 41

Your L2 Commute Analysis, Oxford example, What were the new business objectives?

Answer 41

To attract talent, grow the business

Question 42

Your L2 Commute Analysis, Oxford example, How did you measure the business impact?

Answer 42

It was a small team of c. 15 and they were looking to hire 5 more employees– they were very focussed on employees rather than the cost.

Question 43

Your L2 Commute Analysis, Oxford example, What is a commuter analysis?

Answer 43

Looks at the commute times of employees to office, can measure impact/changes and weight towards different tiered groups.

Question 44

Your L2 Commute Analysis, Oxford example, What time and day did you choose?

Answer 44

Sensitive case was over 60 minutes, and we did this on a Tuesday and 9am (busiest time)

Question 45

Your L2 Commute Analysis, Oxford example, What is Blackbird software?

Answer 45

Blackbird is a travel time calculator tool, allowing you to assess driving, walking, public transport times between destinations – Longitude and latitude

Question 46

Your L2 Commute Analysis, Oxford example, Why was the relocaiton not viable, how would it impact the business?

Answer 46

Given some employee commute times would double, given location of A roads between offices the disruption would be employee disruption, retention and ability to attract new talent

Question 47

Your L2 Commute Analysis, Oxford example, What was the outcome?

Answer 47

The relocation was not viable due to double commute times. In the end the serviced provider had additional space come available in the same adjoining office, my client choose this based on the analysis.

Question 48

Your L2 Commute Analysis, Oxford example, How long a license term did you require?

Answer 48

12 months rolling.

Question 49

Your L2 Commute Analysis, Oxford example, When would you flag to the client to consider future consolidation?

Answer 49

Depends on size, but likely 12 months before

Question 50

For your L3 Stay vs Go, Liverpool example, Can you explain your advice here?

Answer 50

We advised relocating to a new office that was more suitable, with better on-site staff presence and improved acoustics. I advised this would see and increase in costs but ultimately improved employee attendance

Question 51

For your L3 Stay vs Go, Liverpool example, What were some of the KPIs for your client in Liverpool?

Answer 51

The client's KPIs included positive employee retention and satisfaction. Improvement from their office feedback score (80%->90%) by next year.

Question 52

For your L3 Stay vs Go, Liverpool example, What was your role here?

Answer 52

Review client’s portfolio look for office improvement opportunities

Question 53

For your L3 Stay vs Go, Liverpool example, What were your clients objectives?

Answer 53

Better managed office, with better security

Question 54

For your L3 Stay vs Go, Liverpool example, What were the office requirements?

Answer 54

20 desks , meeting room, 12 month term, £230per desk

Question 55

For your L3 Stay vs Go, Liverpool example, What was your recommendation?

Answer 55

Relocate with additional measures for security

Question 56

For your L3 Stay vs Go, Liverpool example, What was the office market in Liverpool like for traditional and flex?

Answer 56

Centre had many serviced office which ranged from £150-£250per desk, the traditional office market has been struggling but has seen some recovery with and uptake in transactions, prime rents still low at £25psf rents.

Question 57

For your L3 Stay vs Go, Liverpool example, What was your end advice?

Answer 57

Relocate, better staff on site, improved acoustics and on floor facilities.

Question 58

For your L3 Stay vs Go, Liverpool example, How did you help improve to help them meet their KPIs in that example?

Answer 58

We advised moving to a superior serviced office in Liverpool city centre, taking a corner unit to reduce neighbouring walls, and incorporating phone booths for privacy due to the client's confidentiality requirements as a banking client.

Question 59

For your L3 Stay vs Go, Liverpool example, How long a license term did you require?

Answer 59

12 months rolling.

Question 60

For your L3 Stay vs Go, Liverpool example, When would you flag to the client to consider future consolidation?

Answer 60

Depends on size, but likely 12 months before

Question 61

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, can you explain your advice here?

Answer 61

After analysing my client’s portfolio and looking at alternative offices I noted 2 opportunities where consolidation to a smaller flex office was suitable. I advised to proceed with those options

Question 62

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, On your opportunity assessment of serviced offices versus traditional leases, why was your client considering the differences?

Answer 62

As a national banking client with many properties, some were becoming underutilized post-pandemic. The client requested we look into opportunities for greater flexibility while they developed their post-pandemic working policy.

Question 63

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What was your role?

Answer 63

Review client’s portfolio to conduct a commute analysis.

Question 64

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, what was your clients objectives?

Answer 64

Improve underutilised offices, better flexibility while they sort working policy

Question 65

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What was your clients KPIs

Answer 65

Getting employees back in 3 days a week and ensuring a minimum EPC of C rating.

Question 66

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What was your recommendation to your clients?

Answer 66

Two sites suitable for relocation to serviced offices due to underutilisation.

Question 67

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What was your end Advice?

Answer 67

Acquire and proceed with the two sites.

Question 68

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What data did you rely on for information?

Answer 68

We contacted local agents and used our internal database to get market rents and lease terms for these locations.

Question 69

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What did the end product and report look like?

Answer 69

We shortlisted two sites that were underutilised and compared the current situation with potential options in an Excel spreadsheet. This included all associated costs, allowing the client to see the total cost contribution for relocation versus current costs.

Question 70

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What option did the client go with in the end?

Answer 70

Agreed with the two relocation options. Although the serviced offices had higher all-inclusive rent, this met their short-term goals while they established their future working policy

Question 71

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, How did you ensure lease terms were aligned with future business needs?

Answer 71

Both options aligned with the same expiry, giving my client the opportunity to relocate if required.

Question 72

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What's the difference between serviced offices and traditional leases?

Answer 72

Serviced offices offer more flexibility with shorter terms, typically on rolling contracts. They have higher costs but include all-inclusive services and are managed by the operator. Traditional offices provide more control over the space but require longer-term commitments and self-management of the space.

Question 73

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, What's the difference between a lease and a licence?

Answer 73

A lease is a contractual obligation with statutory protections. A licence is more flexible and can be terminated more easily, offering less security and stability than a lease.

Question 74

For your L3 Opportunity Asessment, Serviced Office vs a Traditional Lease example, Can you give an example from your SWOT analysis? What was your SWOT of the relocations?

Answer 74

* Strength: Flexibility term and improvement of location convenience. * Weakness: Disruption to staff from moving offices. * Opportunity: Moving to a smaller, more efficient office to save money, while work policy is outlined. * Threat: Potential staff dissatisfaction, with serviced office management issues.