Corporate/Commercial Real Estate (CRE) is the Box. It’s the biggest fixed and inflexible asset that most companies have (whether leased or owned). Having the wrong real estate can cause massive inefficiencies (personnel, supply chain, customer base, suppliers) and hurt both the top and bottom line.
Thinking about the Box is critical to organizational success.
One of the goals here is to give people a roadmap and set of rules for understanding the nature of their business and the nature of the real estate they need to be in. Changing a portfolio and looking to realign with the business is something that the typical business only has to do every 5 to 10 years. It is not something that management or executives have to think about often. It’s not something that a lot of people specialize in. Most people don’t look at the strategic picture with the garden variety real estate decision.
Helpfully, the Box can also refer to the way people think about what they do. Whether you are managing a real estate portfolio or use real estate (I think that covers about 95% of the population) understanding the dynamics can only help. Once you have your site you’ll be there for a long time, it’s critical to make sure it continues to meet your needs.