More Information: https://flevy.com/browse/flevypro/integrated-real-estate-strategy-3743 Disruption is constantly changing the retail business environment. In fact, it is adding complexities to it with every passing day. Sweeping changes in consumers’ behaviors and the challenges to retail economic models are pushing the current retail models to undergo considerable transformation. A number of organizations that possess a sizable property portfolio find it challenging to manage their assets. Although, physical stores still remain the preferred mode of shopping in retail — owing to benefits, such as, experiencing the products on the spot, ensuring a good fit, and the satisfaction of immediate ownership — consumers today have the convenience of exploring and buying products online. There is a progressive trend of e-commerce with many consumers relying on online medium instead of physical store, as they prefer a shopping experience that reduces ambiguity and inflexibility and boosts simplicity and fun. In future, mobile commerce is predicted to make up an even larger portion of e-commerce. In future, new pricing regimes and transforming consumer behaviors will put further pressure on retail margins. Moreover, intense rivalry and a gamut of online shopping solutions will likely push the retailers to reassess their store requirements, evolving from larger stores to smaller store formats, since optimization of real estate operating costs will be a decisive factor in keeping the stores profitable. Market challenges will drive the retailers to have low space per store, demand greater flexibility, briefer lease periods, discontinuity clauses, and store area modification options. For the organizations to deal with imminent consumer trends and competition, it is important to undertake frequent evaluations and adjustments in their retail business strategy. But often they face issues, such as the retail business strategy not translated into property domain; disassociation between business and Real Estate Strategies; or existing Real Estate Strategy lagging behind in meeting business needs resulting in high operating costs and unused premises. Got a question about this presentation? Email us at support@flevy.com.

1. 1/17/2021 Real Estate Essentials: Developing an Integrated Real Estate Strategy | by Mark Bridges | Medium
https://mark-bridges.medium.com/real-estate-essentials-developing-an-integrated-real-estate-strategy-f629baa1705f 1/7
Mark Bridges
Follow 56 Followers About
Real Estate Essentials: Developing an
Integrated Real Estate Strategy
Mark Bridges Apr 14, 2019 · 6 min read
Open in appOpen in app

2. 1/17/2021 Real Estate Essentials: Developing an Integrated Real Estate Strategy | by Mark Bridges | Medium
https://mark-bridges.medium.com/real-estate-essentials-developing-an-integrated-real-estate-strategy-f629baa1705f 2/7
Disruption is constantly changing the retail business environment. In fact, it is adding
complexities to it with every passing day. Sweeping changes in consumers’ behaviors
and the challenges to retail economic models are pushing the current retail models to
undergo considerable transformation. A number of organizations that possess a sizable
property portfolio find it challenging to manage their assets.
Although, physical stores still remain the preferred mode of shopping in retail — owing
to benefits, such as, experiencing the products on the spot, ensuring a good fit, and the
satisfaction of immediate ownership — consumers today have the convenience of
exploring and buying products online. There is a progressive trend of e-commerce with
many consumers relying on online medium instead of physical store, as they prefer a
shopping experience that reduces ambiguity and inflexibility and boosts simplicity and
fun. In future, mobile commerce is predicted to make up an even larger portion of e-
commerce.
In future, new pricing regimes and transforming consumer behaviors will put further
pressure on retail margins. Moreover, intense rivalry and a gamut of online shopping
solutions will likely push the retailers to reassess their store requirements, evolving from
larger stores to smaller store formats, since optimization of real estate operating costs
will be a decisive factor in keeping the stores profitable. Market challenges will drive the
retailers to have low space per store, demand greater flexibility, briefer lease periods,
discontinuity clauses, and store area modification options.
For the organizations to deal with imminent consumer trends and competition, it is
important to undertake frequent evaluations and adjustments in their retail business
strategy. But often they face issues, such as the retail business strategy not translated
Open in app

3. 1/17/2021 Real Estate Essentials: Developing an Integrated Real Estate Strategy | by Mark Bridges | Medium
https://mark-bridges.medium.com/real-estate-essentials-developing-an-integrated-real-estate-strategy-f629baa1705f 3/7
into property domain; disassociation between business and Real Estate Strategies; or
existing Real Estate Strategy lagging behind in meeting business needs resulting in high
operating costs and unused premises.
Integrated Real Estate Strategy
These changing times warrant integration of organizational and Real Estate Strategies.
Leadership needs to understand the effect of local and global trends on an organization’s
industry. They should then interpret and incorporate the impact of these trends into an
integrated, pragmatic, and executable Real Estate Strategy; and envisage its potential
alignment with their real estate requirements.
An integrated Real Estate Strategy assists the premises occupants in implementing
strategic decisions consistent with evolving markets and technological disruption,
without having any negative effects on business operations and in line with their current
portfolio. A pragmatic Real Estate Strategy meets enterprise and customer requirements
and streamlines operating costs.
An integrated approach to manage enterprise real estate in the retail industry helps
reveal potential opportunities and threats for the investors. The benefits of adopting an
integrated Real Estate Strategy include enhanced market access and operational
efficiency by responding promptly to consumer demands, flexibility in retail and office
environment, improved consumer experience, and robust premises cost management.
An integrated and executable approach to Real Estate Strategy encompasses 4 key
elements:
1. Detailed understanding of the Corporate Strategy
2. Current portfolio analysis
3. Workforce management
4. Occupancy management
Open in app

4. 1/17/2021 Real Estate Essentials: Developing an Integrated Real Estate Strategy | by Mark Bridges | Medium
https://mark-bridges.medium.com/real-estate-essentials-developing-an-integrated-real-estate-strategy-f629baa1705f 4/7
Let’s now get into the details of the first 2 key elements of the integrated Real Estate
Strategy.
Detailed understanding of the Corporate Strategy
Leaders need to have a detailed assessment of business requirements to create a
premises strategy. Based on a thorough understanding of business requirements, a
premises strategy should be developed. The occupants should outline a detailed location
portfolio mix to achieve enterprise goals related to cost optimization, growth, locations,
and risks.
The key to developing an integrated Real Estate Strategy is to understand and challenge
the organization’s Corporate Strategy and Target Operating Model; outline the business
or service model and product mix; and ascertain current and future strategic and
financial goals. A robust strategy entails clear definition of premises requirements,
initiatives to enable sustained optimization of portfolio, and alignment with financial
goals.
Current Portfolio Analysis
Open in app

5. 1/17/2021 Real Estate Essentials: Developing an Integrated Real Estate Strategy | by Mark Bridges | Medium
https://mark-bridges.medium.com/real-estate-essentials-developing-an-integrated-real-estate-strategy-f629baa1705f 5/7
Another important element aimed at the integration of organizational and Real Estate
Strategies is to evaluate the existing premises portfolio, by undertaking a thorough
analysis of the current and future use of the properties. This should include taking a
careful look at the existing tenure agreement and terms and conditions, current rents,
market conditions, and commercial options. This also warrants carrying out a premises
opportunity analysis to include development and disposal options, current and future
operational and capital expenditures, portfolio-wide exit terms from current
owned/leased premises, tax, and performance metrics.
Interested in learning more about the other 2 elements (Workforce Training &
Managementand Occupancy Management) to managing real estate portfolio? You can
download an editable PowerPoint on Integrated Real Estate Strategy here on the Flevy
documents marketplace.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business
frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of
management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in
demand in today’s market. They not only augment my existing consulting and coaching
offerings and delivery, but also keep me abreast of the latest trends, inspire new products
and service offerings for my practice, and educate me in a fraction of the time and money of
other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an
on-going reference to help us structure our findings and recommendations to our clients as
well as improve their clarity, strength, and visual power. For us, it is an invaluable resource
to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“As a small business owner, the resource material available from FlevyPro has proven to be
invaluable. The ability to search for material on demand based our project events and client
requirements was great for me and proved very beneficial to my clients. Importantly, being
Open in app

6. 1/17/2021 Real Estate Essentials: Developing an Integrated Real Estate Strategy | by Mark Bridges | Medium
https://mark-bridges.medium.com/real-estate-essentials-developing-an-integrated-real-estate-strategy-f629baa1705f 6/7
able to easily edit and tailor the material for specific purposes helped us to make
presentations, knowledge sharing, and toolkit development, which formed part of the
overall program collateral. While FlevyPro contains resource material that any consultancy,
project or delivery firm must have, it is an essential part of a small firm or independent
consultant’s toolbox.”
– Michael Duff, Managing Director at Change Strategy (UK)
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to
access a vast knowledge bank of presentations to support my work with clients. In terms of
RoI, the value I received from the very first presentation I downloaded paid for my
subscription many times over! The quality of the decks available allows me to punch way
above my weight — it’s like having the resources of a Big 4 consultancy at your fingertips at
a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I
have (I am a consultant). When the subject requires it, I explore further and buy from the
Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and
applicable ideas for my work; and, of course, all this translates to my and my clients’
benefits.”
– Omar Hernán Montes Parra, CEO at Quantum SFE
Business Str Real Estate Strategy Occupancy Management Portfolio Analysis Business
About Help Legal
Get the Medium app
Open in app

7. 1/17/2021 Real Estate Essentials: Developing an Integrated Real Estate Strategy | by Mark Bridges | Medium
https://mark-bridges.medium.com/real-estate-essentials-developing-an-integrated-real-estate-strategy-f629baa1705f 7/7
Open in app