Good portfolio management dictates the continuous review of a company’s real estate uses. Are we being efficient and cost effective? How is our use of real estate adding value to our company? What real estate is core to our successful long-term operations and what is not? The answers to these types of queries should help companies decide when the ownership of real estate is appropriate for them. Most corporate real estate departments are geared to making sure that a company is in the right places to do business, that associated bills are being paid, and that facilities are running as efficiently as possible. So most corporate focus rests on real estate that is essential and actively used, with attention then being paid, if at all, to idle or non-essential real estate.
In today’s corporate compliance and accountability climate, the Sarbanes-Oxley Act of 2002 (SOX) has created an almost perfect storm, if you will, of corporate accountability. This covers accounting accurately and fully on not only financial activities and operations, but also better disclosure of corporate risk elements, including environmental liabilities.
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