The Leader - May/June 2008 - (Page 48)

executive p r o F il e Wells Fargo’s San Francisco Space Strategy: David Nelson’s Cycle-Proofing Makes for Impressive CBD Portfolio Play BY ricHarD kaDzis hen is an economic cycle predictable? Or to what extent can you react in time to not get caught with too much space, or, for that matter, too little? And when do you know it’s the best time to sell, then lease back on your own carefully defined terms, at least some of your space? The ability to forecast in this and so many other ways is certainly one measure of effective corporate real estate (CRE) management. (See related subject in this edition’s Industry Tracker column.) CRE can influence or even lead it, yet it’s bigger than that. It can determine the profitability of an enterprise, and Wells Fargo found a way to get a handle on it in one of North America’s priciest commercial real estate markets. At its essence is the understanding of simply what makes for a good deal. W BankinG on econoMY oF scale The bank’s Senior Vice President of CRE David Nelson relates how Wells Fargo leveraged its size, credit ranking and cash holdings to essentially future proof its downtown San Francisco space holdings from economic cycles. The impressive portfolio play involved multiple experts inside and outside of the bank, and the results saved hundreds of millions of dollars on expensive leased and owned real estate in the central business district (CBD), where the bank wanted to concentrate more employees. Nelson’s team includes Arthur Barbour, a Vice President inside Wells Fargo who also has a lot of experience in brokerage and managing outside providers. Mark McGranahan, Executive Director for Cushman & Wakefield based in San Francisco, also plays an active role. aBout tHe coMpanY WELLS FARGO FACTS n n n n n n A diversified financial services company Assets over $549 billion The 5th largest U.S. bank $100 billion market cap Record revenue of $39.4 billion in 2007 Over 158,000 employees CRE INSIDE WELLS FARGO n n n n n Over 6,200 locations Portfolio in excess of 60 million square feet 50% owned and 50% leased 2,000 tenants $1 Billion plus flows through CPG accounts annually Building 100+ new branches a year n tH e le aDe r 48 MaY / j u n e 2008

Table of Contents Feed for the Digital Edition of The Leader - May/June 2008

The Leader - May/June 2008 Leadership Contents Message from the CEO Real Estate in the News Green Real Estate Work Without Boundries Building Flexibility Into the Business Strategy Multi-Generational Work-Force Design Work Force Longevity Analysis Wells Fargo's David Nelson Pennsylvania's Michael Rossman Globalization 2.0 Site Selection Consultant Directory The New York Report: A Core of Traditional and State-of-the-Art Opportunities Discovery Forum Findings Industry Tracker Young Leader Career Development Effective Leadership Economic Development in the News A Look Ahead In Our Next Issue Calendar of Seminars Index of Advertisers Executive Development Spotlight

The Leader - May/June 2008

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