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It’s Beginning to Look a Lot Like Next Year ...
December 2023 | Industry Article
By Brian Rossi, COO of BellCornerstone
It may be the most wonderful time of the year, but it’s also beginning to look a lot like next year. Amid the spirited chaos of the holiday season, most of us are working diligently to tie up loose ends, striving to achieve Q4 goals, and closing out the current year with a strong finish. It’s a time of closure and evaluation. What worked? What didn’t? What do we need to improve or change going into next year? These end-of-year reflections help set the foundation for refining strategies in the coming year. This same exercise is particularly important when considering your commercial real estate positions.
Chances are, there are few business expenses that hold as much weight as the costs associated with your real estate. Reviewing your commercial real estate portfolio and setting resolutions and goals for the new year is more than a routine exercise; it’s a strategic investment in your company’s financial future in the years to come.
Here are 4 New Year real estate resolutions to consider for your commercial real estate in 2024:
1. Portfolio Assessment: Take stock of your entire real estate portfolio. Evaluate each property's performance, occupancy rates, and potential for improvement. Ask yourself:
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Are there properties with underutilized space that could be optimized or repurposed?
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Are there any properties that might benefit from renovations or upgrades to enhance real estate value or employee satisfaction?
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Are there properties that might be time to sell now based on current market trends?
2. Cost Analysis: Review your capital expenditures and operational costs. Consider ways to optimize expenses and increase efficiency:
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Are there any costly capital expenditures that can be deferred or restructured to better align with financial goals?
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Can you implement cost-saving measures, such as energy-efficient upgrades or re-negotiating service contracts, to reduce operational expenses?
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Does the math point toward selling and leasing a smaller office?
3. Future Vision: Chart out the vision of where your organization is headed, and how that vision intersects with the reality of your present commercial real estate position.
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Where do you want your real estate portfolio in the next 1-3 years?
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Are there specific markets you want to target or exit?
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What steps can you take to enhance your portfolio's position from a capital standpoint?
4. Risk Mitigation: Anticipating potential challenges and preparing contingency plans offers a proactive approach to tackle unforeseen circumstances that may arise in the new year.
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Are there any potential risks or vulnerabilities in your portfolio that need attention or mitigation strategies?
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Do you have a contingency plan in place to handle unexpected market changes or economic fluctuations?
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Do you have any tenant leases that are expiring?
Setting smart goals and action plans based on these considerations can help you optimize your commercial real estate portfolio, improve efficiency and position your organization for success in 2024 and beyond. As you go through the process of navigating through these questions and answers, please feel free to reach out to BellCornerstone for a confidential, no-obligation conversation.
This article appeared in America's Newspapers.
Brian Rossi, COO of BellCornerstone, a national commercial real estate firm, leverages his 25+ years of entrepreneurial expertise, business consulting, and real estate investment experience. Contact Brian at 315-935-3162 or brossi@bellcornerstone.com to learn more.