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Flexibility at any price? Challenging a costly convention on leases

Charles Woollam (Charles Woollam, Head of Corporate Property Services, Donaldsons, 70 Jermyn Street, London SW1Y 6PE, UK; Tel: +44 (0)207 389 9271; Fax: +44 (0)207 839 2743; e‐mail: Charles.Woollam@Donaldsons.co.uk)

Journal of Corporate Real Estate

ISSN: 1463-001X

Article publication date: 31 December 2003

564

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

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MCB UP Ltd

Copyright © 2003, Emerald Group Publishing Limited

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