Twitter Chat: Rakesh Kishan on Today’s Corporate Real Estate Strategies
- Jan 30, 2013
Rakesh Kishan, president & executive managing director of real estate and facilities management consulting firm UMS Advisory, took some time out of his busy schedule to join us for a live chat on CPE‘s Twitter page. During the Q&A (in Twitter style of 140 characters or less per tweet), he delved into the mindset of today’s CFOs and revealed how post-recession business priorities are likely to impact corporate real estate strategies. He also offered useful advice on how to better serve corporate tenants and clients.
CPE: What are the biggest changes you expect from corporations relative to their CRE strategies in 2013?
Kishan: In short, changes in structure, location, process and strategy to drive bottom line impact. This will mean changes in CRE organizations, their suppliers, technology and outsourcing choices.
CPE: What are CFOs’ priorities as we emerge from the recession, and how is this impacting their CRE strategies?
Kishan: CFOs want cost but have greater awareness of the need to balance against operational risk, realistic timelines and growth. In particular, reduction of waste, streamlined processes & making tough business decisions on big CRE deals. We will see more centralized CRE orgs, a premium on talent and CRE leaders who can drive flawless execution.
CPE: How much will that change the CRE orgs?
Kishan: A lot: rebalancing of global vs. local decision, bolder CRE roles with higher talent and more non-core outsourcing.
CPE: So how far out do CFOs want to plan for RE needs? Are they planning more for the short, medium or long term?
Kishan: Real strong focus on x-divisional plans to avert downside risks and stranded costs (on a) 2-4 year horizon; varies by region.
CPE: What are their biggest challenges as it relates to their real estate?
Kishan: Transform the workplace, drive RE plans x-divisionally, consolidate, jettison non-operating surplus, reposition CRE.
CPE: What new responsibilities are corporations seeking from their service providers?
Kishan: Joint financial management, broader PM capability, more share of peripheral services, innovation, more ops control, more seamless services, third-generation solutions.
For the Twitter Live Chat version, go to: https://twitter.com/search?q=cpechat&src=typd (#cpechat).