A growing number of companies worldwide are updating the management of their real estate assets to avoid significant wastage and unnecessary expenses, according to studies by global real estate firm Jones Lang LaSalle (JLL).
Gerard Dizon, JLL head of asset and multi-site management, said that among the most strategic steps a company can undertake to curb real estate management costs would be to regularly track utilities and maintenance related expenses. These real estate costs refer to the management and maintenance of offices, stores, branches and other properties.
Studies show that on the average, air-conditioning accounts for 34 percent and clearly the lion's share of a company's energy bill, one of the highest real estate expenses. When companies such as banks with hundreds of branches prioritize preventive maintenance, this translates to energy savings, and the benefits can be multi-tiered and enormous.
Another recent global study by Jones Lang LaSalle reveals that more companies, particularly those with multiple locations, are choosing to outsource the management of the offices, stores, and other real estate assets they own to property specialists to better rationalize real estate spending.
In a 2013 survey covering 630 companies in 39 countries, 92 percent of the firms practice some form of real estate outsourcing.
Berna Santiago, JLL Head of Property and Asset Management, added that knowledge from across a number of disciplines is required to competently manage real estate assets.
"It is critical to know how to manage basic utilities like electricity and water as well as construction and lease management, to name a few. Rather than delegate these additional functions to a bank or store manager, it makes practical and good business sense to simply outsource these to specialists. Practical, because this allows your key personnel to focus on your core business and key function, while the property specialists take on the premises maintenance and management, leading to lower overall cost of service through economies of scale," she said.
Asset and multi-site management is a core service offering of Jones Lang LaSalle in the Philippines. It manages a total gross floor area of one million square meters on behalf of corporations and other entities.
Most businesses rely on multiple vendors for the air-conditioning, electrical, plumbing and other needs of their premises. JLL offers a cross-functional approach on a single platform to ensure the integration of services and accountability.