The Leader - September 2007 - (Page 78) e x ecu t I v e p ro f Il e Nortel’s Mark Gorman: Managing the Portfolio Roller Coaster by tIm veNable U sually, riding a roller coaster involves a trip to an amusement park. Thrill-seekers are drawn by the anticipation of the ride’s steep climb and the excitement of its rapid descent. A few years ago, though, Nortel Real Estate (CRE) found itself on a roller coaster of a different kind – and not by choice. Fueled by the explosive growth of the dot-com era, the high-tech leader’s real estate portfolio grew larger and larger, reaching a peak of some 33 million sq. ft. (3 million sq. m.). There were more than 600 properties in 52 countries, and some cities had as many as 42 buildings. “The real estate strategy was all about accommodating growth,” recalls Mark Gorman MCR, Leader, Global Real Estate, Nortel. “We were trying to build as fast as we could to keep up with the growth. Exit strategies, while a discipline we followed for every site, were not a serious concern in the boom days.” then, in the fall of 2000, the bubble burst. “The world changed,” Gorman recalls. “In terms of the portfolio, it was time to get small, and get small fast. We employed all the exit strategies we had, and we employed them very quickly which gave us an initial but brief advantage in the market.” And get small they did. The portfolio was made more efficient, with CRE eventually reducing 400 properties and 22 million sq. ft. (2 million sq. m.) of space. Today the portfolio stands at roughly 11 million sq. ft. (1 million sq. m.), a remarkable two-thirds reduction (see Figure 1). To say the least, the past few years have been quite a ride for Gorman and the CRE team. th e le ade r Nortel (www.nortel.com) has been on the track for a long time, tracing its beginnings to the late 19th century. In fact, the company can trace its roots back to the invention of the telephone in 1874 by Alexander Graham Bell at Brantford, Ontario. Today the company delivers innovative technology solutions encomF IG. 1 No rt e l at a G l aNc e Revenue: Employees: Internal Real Estate Staff: Real Estate Portfolio $2.5 billion (Q1 2007) 30,000 52 11 million sq. ft. (1 million sq. m.) 78 september / october 2007 http://www.nortel.com
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