Corporate Real Estate (CRE) teams are undergoing significant transformations as their role shifts from transactional support to strategic business enablers. As companies face increasing pressure to balance cost efficiency with enhancing employee experience, CRE leaders are tasked with creating purpose-built organizations designed to deliver transformative outcomes. This article delves into the trends, insights, and best practices that can help CRE leaders build high-performing teams and align their operations with evolving business needs.
From Transactional to Transformative: The Evolving Role of CRE
Corporate Real Estate & Facilities (CRE&F) is no longer just about managing office spaces or reducing costs. Today, 89% of CRE&F leaders view their role as enablers of core business outcomes. This shift reflects the growing importance of CRE&F in supporting talent acquisition, driving sustainability goals, and mitigating risks—all while maintaining a focus on cost management.
A recent CBRE Institute survey revealed that 66% of CRE&F leaders expect to make organizational changes in the coming year to better align with their evolving mission. These changes are driven by the need to:
- Strengthen partnerships with HR, IT, and other functional teams.
- Optimize real estate strategies to improve recruitment and retention.
- Support net-zero initiatives and ensure operational resilience.
Despite these evolving priorities, financial stewardship remains a core focus, as real estate is often the second or third largest expense for corporations.
Emerging Themes in CRE Organizational Design
As CRE&F teams redefine their objectives, several key themes are shaping their organizational design:
- Governance and Reorganization: A focus on efficiency, leadership migration, and outsourcing to streamline operations.
- Value Proposition: Transitioning from task-oriented roles to strategic advisory positions that emphasize both cost stewardship and employee experience.
- Centralization vs. Decentralization: Many organizations are adopting a hybrid approach, combining centralized efficiency with decentralized local execution.
- Capabilities and Succession Planning: New skill sets such as AI proficiency, agile space management, and business acumen are becoming critical.
- Integrated Teams: High-performing organizations align internal teams with service partners to function as a cohesive unit.
Operating Models: Traditional vs. Hybrid Approaches
CRE organizational structures vary based on enterprise needs and portfolio complexity. Traditional models include:
- Function-Dominant: Focused on uniform processes and efficiency for homogeneous property types.
- Geography-Dominant: Balances regional autonomy with global consistency.
- Asset-Type-Dominant: Suited for specialized portfolios, like manufacturing facilities.
- Line-of-Business-Dominant: Serves distinct departments with independent needs.
Increasingly, companies are adopting hybrid models that allow for global standardization while meeting localized needs. Centers of Excellence (COEs) often play a key role in driving consistency across portfolios and ensuring alignment with business objectives.
Principles of High-Performing CRE Teams
High-performing CRE organizations are characterized by their ability to adapt to enterprise strategies while fostering innovation and collaboration. Five key principles define these teams:
- Business Alignment: Processes and roles focus on achieving measurable business outcomes.
- Strategic Partnerships: CRE functions act as advisors, integrating with internal teams for business-centric execution.
- Efficient Structures: Simplified processes and optimized supply chains ensure operational effectiveness.
- Technology-Driven Insights: Advanced analytics provide actionable insights for decision-making.
- Unified Operations: Internal teams and service partners work as one, sharing common goals and priorities.
Driving the Case for Change
Redesigning a CRE organization should begin with a clear purpose and defined drivers of change. Leaders must identify capabilities, roles, and processes that align with strategic objectives before adjusting structures. Key levers for change include:
- Purpose and Value: Establishing CRE’s role in delivering business outcomes.
- Succession Planning: Building leadership pipelines by upskilling employees and recruiting talent from diverse backgrounds.
- Customer Relationship Management (CRM): Redefining CRM competencies for future demands.
- Governance: Leveraging data and processes to drive strategic decisions.
- Capabilities: Ensuring teams evolve with changing business needs.
A Strategic Imperative for CRE Leaders
CRE leaders are uniquely positioned to influence how organizations adapt to modern work models. By aligning people, processes, and portfolios, they can help businesses achieve strategic goals and enhance the employee experience. However, success requires thoughtful planning, stakeholder engagement, and a commitment to continuous improvement.
For CRE teams seeking to visualize and optimize their strategies, VidTech.com offers cutting-edge tools that bring clarity to complex portfolios. With services ranging from 4K drone footage to data-enriched overlays, VidTech.com helps organizations make informed decisions that align with their goals. Learn more about how we can support your CRE transformation by visiting VidTech.com.
