Portfolio Management

Description:

A mid-size firm in the Midwest portfolio had grown through the years and needed a real estate plan that aligned with their Corporate Strategy. In addition, their operating expenses were higher than normal and capital expenses were rising.

Terrus' Role:

Terrus worked with the real estate department and Senior Management to create a rent roll, summarize lease terms/option dates/critical information, identify future growth projections, analyze the current utilization of their facilities and current occupancy costs, created a 15 year capital budget plan and identified areas for potential savings including sale/lease/back options, right sizing vendors/staff work loads, etc.

Advantages:

The Client was able to understand their current real estate situation, and map out a strategy that coincided with their short and long term strategic corporate plan. In addition, they identified multiple areas in which to create value, save on operating costs, and reduce liability.

Savings:

Helped reduce annual operating expenses by approximately $450,000 ($3.7 psf) and additional real estate savings in excess of $1,000,000 over 5 years in renegotiated leases and reduction in real estate taxes.