Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.

Real Estate 101: Developing an Integrated Real Estate Strategy

Editor's Note: If you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

Featured Best Practice on Growth Strategy

41-slide PowerPoint presentation
The reality is: all businesses face the challenge of achieving sustainable Growth. They need viable Growth Strategies. So, what is Growth Strategy? It is the organization's high-level Corporate Strategy Plan that outlines everything the organization needs to do to achieve its goals for [read more]

* * * *

Disruption is constantly changing the retail business environment.  In fact, it is adding complexities to it with every passing day.  Sweeping changes in consumers’ behaviors and the challenges to retail economic models are pushing the current retail models to undergo considerable transformation.  A number of organizations that possess a sizable property portfolio find it challenging to manage their assets.

Although, physical stores still remain the preferred mode of shopping in retail—owing to benefits, such as, experiencing the products on the spot, ensuring a good fit, and the satisfaction of immediate ownership—consumers today have the convenience of exploring and buying products online.  There is a progressive trend of e-commerce with many consumers relying on online medium instead of physical store, as they prefer a shopping experience that reduces ambiguity and inflexibility and boosts simplicity and fun.  In future, mobile commerce is predicted to make up an even larger portion of e-commerce.

In future, new pricing regimes and transforming consumer behaviors will put further pressure on retail margins.  Moreover, intense rivalry and a gamut of online shopping solutions will likely push the retailers to reassess their store requirements, evolving from larger stores to smaller store formats, since optimization of real estate operating costs will be a decisive factor in keeping the stores profitable.  Market challenges will drive the retailers to have low space per store, demand greater flexibility, briefer lease periods, discontinuity clauses, and store area modification options.

For the organizations to deal with imminent consumer trends and competition, it is important to undertake frequent evaluations and adjustments in their retail business strategy.  But often they face issues, such as the retail business strategy not translated into property domain; disassociation between business and Real Estate Strategies; or existing Real Estate Strategy lagging behind in meeting business needs resulting in high operating costs and unused premises.

Integrated Real Estate Strategy

These changing times warrant integration of organizational and Real Estate Strategies.  Leadership needs to understand the effect of local and global trends on an organization’s industry.  They should then interpret and incorporate the impact of these trends into an integrated, pragmatic, and executable Real Estate Strategy; and envisage its potential alignment with their real estate requirements.

An integrated Real Estate Strategy assists the premises occupants in implementing strategic decisions consistent with evolving markets and technological disruption, without having any negative effects on business operations and in line with their current portfolio.  A pragmatic Real Estate Strategy meets enterprise and customer requirements and streamlines operating costs.

An integrated approach to manage enterprise real estate in the retail industry helps reveal potential opportunities and threats for the investors.  The benefits of adopting an integrated Real Estate Strategy include enhanced market access and operational efficiency by responding promptly to consumer demands, flexibility in retail and office environment, improved consumer experience, and robust premises cost management.

An integrated and executable approach to Real Estate Strategy encompasses 4 key elements:

  1. Detailed understanding of the Corporate Strategy
  2. Current portfolio analysis
  3. Workforce management
  4. Occupancy management

Let’s now get into the details of the first 2 key elements of the integrated Real Estate Strategy.

Detailed understanding of the Corporate Strategy

Leaders need to have a detailed assessment of business requirements to develop a premises strategy.  Based on a thorough understanding of business requirements, a premises strategy should be developed.  The occupants should outline a detailed location portfolio mix to achieve enterprise goals related to cost optimization, growth, locations, and risks.

The key to developing an integrated Real Estate Strategy is to understand and challenge the organization’s Corporate Strategy and Target Operating Model; outline the business or service model and product mix; and ascertain current and future strategic and financial goals.  A robust strategy entails clear definition of premises requirements, initiatives to enable sustained optimization of portfolio, and alignment with financial goals.

Current Portfolio Analysis

Another important element aimed at the integration of organizational and Real Estate Strategies is to evaluate the existing premises portfolio, by undertaking a thorough analysis of the current and future use of the properties.  This should include taking a careful look at the existing tenure agreement and terms and conditions, current rents, market conditions, and commercial options.  This also warrants carrying out a premises opportunity analysis to include development and disposal options, current and future operational and capital expenditures, portfolio-wide exit terms from current owned/leased premises, tax, and performance metrics.

Interested in learning more about the other 2 elements (Workforce Training & Management and Occupancy Management) to managing real estate portfolio?  You can download an editable PowerPoint on Integrated Real Estate Strategy here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”

– Omar Hernán Montes Parra, CEO at Quantum SFE

76-slide PowerPoint presentation
This document is a growth opportunity assessment approach. The approach is made up of the following steps: - Understand business/market profile (industry dynamics, customers, competition, company, economics) - Identify high-level growth opportunities - Evaluate opportunity attractiveness [read more]

Want to Achieve Excellence in Strategy Development?

Gain the knowledge and develop the expertise to become an expert in Strategy Development. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

Learn about our Strategy Development Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources

25-slide PowerPoint presentation
This presentation introduces a framework for entrepreneurs to use when building and navigating their business from a nascent, startup state to an enterprise with a global footprint. This framework, called the 5 Stages of Business Growth, is based on the fact that all businesses experience common [read more]

95-slide PowerPoint presentation
91-slide PowerPoint presentation

About Mark Bridges

Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.

, , , , ,

Complimentary Business Training Guides

Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function






The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.

Connect with Flevy:


About Flevy.com   /   Terms   /   Privacy Policy
© . Flevy LLC. All Rights Reserved.