Flexibility at any price? Challenging a costly convention on leases
Abstract
Some companies see property as a strategic resource that can add value to corporate performance; others view it as a commodity that more often acts as a barrier to core business activities. In both instances, insufficient forward planning often prevents companies from making the most of their property portfolios and avoiding unnecessary costs. This paper looks at how operational property portfolios can be classified according to their strategic significance to the business and, specifically, how occupiers can more closely align property holdings with core business objectives by differentiating between ‘core’, ‘tactical’ and ‘(semi)surplus’ properties. The paper focuses specifically on the topical issue of flexibility, identifying potential costs and considering whether and to what extent short leases and break clauses are worth paying for. It also contains a large number of practical tips for managing real estate liabilities and making assets perform better.
Keywords
Citation
Woollam, C. (2003), "Flexibility at any price? Challenging a costly convention on leases", Journal of Corporate Real Estate, Vol. 6 No. 1, pp. 73-82. https://doi.org/10.1108/14630010410812243
Publisher
:MCB UP Ltd
Copyright © 2003, Emerald Group Publishing Limited