Property nowadays simply a diversion and distraction for major corporates

Citation

(2001), "Property nowadays simply a diversion and distraction for major corporates", Facilities, Vol. 19 No. 13/14. https://doi.org/10.1108/f.2001.06919mab.017

Property nowadays simply a diversion and distraction for major corporates

Keywords: Property management, Contracting out, Partnering

"Property may be at the heart of most companies but dealing with it can be nothing more than a diversion and distraction from core business activity," according to Ray Jenkins, head of portfolio services at BT, speaking recently at the insp@ce inClub lunch.

As a result many blue-chips are reassessing their approach to property management and holdings, the aim being to pass on both the risk and reward to other parties. The trend towards greater outsourcing as a result has led to a significant shift in relations between occupiers, suppliers and consultants.

Ray Jenkins added "The industry needs to realise that occupiers' demands are changing. Ten years ago we operated in a transactional environment largely based on one-off projects where cost was the key. This inevitably meant short-term relationships with a huge range of different suppliers. Now we are looking to develop longer term relationships with a smaller number. We have reduced the number of contractors handling construction and maintenance work from 300 to four and on the facilities management side of BT we are now down to a single supplier nationally. We are now focusing more on partnering and delivering real value."

John O'Neill, managing director of insp@ce, one of the leading interior service providers, said "A lot of people have talked about partnering in recent years but it is often only lip service. At inspi@ce we've recognised that blue-chips are seeking partners who they can trust and see as an extension of themselves. I was delighted to hear Ray Jenkins talking about forming real strategic alliances in property. This is just the kind of approach we have been pioneering since we were set up in 1999 and had previously developed under Sir Ian Dixon and Sir Michael Latham within the Willmott Dixon Group."

The insp@ce inClub was launched in February 2001 as a networking forum between property owners, occupiers and suppliers to encourage innovative thinking in the property industry.

For further information please contact Alex Kane at Spada on +44 (0) 20 7593 3333.