The Leader - September 2007 - (Page 34) I mpr ovIN G per for m a N ce th r o uG h I Nte lle ctual cap I tal: co llabo ratI v e be NchmarkING n n n n focus with transparency into portfotegic conversations around corporate nication with senior executives lio performance and characteristics. real estate delivery. concerning the overall portfolio’s n Fact-based information. Benchmarking performance in comparison to comAdvanced work processes. Tracking petitors and internal business units. expenses and portfolio information allows corporate real estate to develop The dialogue generated by conveying from year-to-year can help companies decisions, such as expansion, contracportfolio performance in the language explore efficiencies and foster contion and/or relocation, based on portof the business promotes more stratinuous improvement. folio metric real data. Framework for introspection. Benchmarking applyING beNchmarkING does not always have to your portfolIo to include external revIeW data sources. As a first Benchmarking can be step in benchmarking, applied to practically anycompanies will often thing that is measurable. measure performance Some common real estate of their assets through benchmarks include: n Occupancy expenses per internal analysis, comparing space utilization square foot n Utilization ratios by by various business units or operating employee Corporate Executives – invest in your growth, not in your real estate n Cost of occupancy per expenses per square foot Brokers – reach a successful closing by building. This initial employee n Vacancy percentage by step can provide comDevelopers – create a JV and/or a bankable take-out panies with directional type Private Equity Investors – increase your ROI by monetizing your real estate n Vacancy carry cost guidance on where to Real Estate Investors – receive up to 95% LTV financing focus their resources. In a recently conducted Trend analysis. Similar benchmarking study for a public utility company, we to portfolio performance Work with America’s largest net lease REIT, with $7 billion in assets were asked to review the monitoring, trend analyunder management. overall real estate portfolio sis allows real estate to performance, both in terms identify changes over of how the portfolio suptime to metrics that Let us structure your next transaction to meet your needs. ported business operations may be due to global and how the portfolio pereconomics. Trending formed in terms of operatmetrics year-over-year ing and capital expenses. can show bottom line We utilized benchmarkimpact to initiatives ing to assess the overall put in place to manage portfolio performance and costs. One Penn Plaza, Suite 4015, New York, New York 10119-4015 to drive future real estate Management reports. Richard J. Rouse at 212-692-7220 or rrouse@lxp.com decisions, such as, relocaCorporate real estate Natasha Roberts at 212-692-7233 or nroberts@lxp.com tion of inferior facilities. executives can use www.lxp.com benchmarking reports The study resulted in NEW YORK CHICAGO DALLAS to facilitate commuidentification of more Exploring Single Tenant Net Lease Financing? Choose the Right Guide: Lexington Realty Trust Enjoy a Profitable Partnership th e le ade r 34 september / october 2007 http://www.lxp.com http://www.lxp.com
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