Strategic Property Decisions
Utilising a strategic approach will provide clients with the knowledge and confidence to make an informed decision. This is a critical determinate to ensure a potential property is suitable for the proposed operational business use, or alternatively, its investment potential.
A well-defined strategy is a road map for sustained profitability, competitiveness and future-proofing the business. This is appropriate for commercial, industrial, retail or healthcare property.
The first stage of the process is to adopt a transparent and robust methodology, focusing on measurable value, strategic planning and successful implementation.
The important factors to consider are:
Locational characteristics (access, visibility, infrastructure, client base).
Functionality to ensure future operational requirements, core values and operational objectives are met.
Assess a property (or portfolio), to maximise the performance, economic life and financial returns.
Evaluate the attributes of the desired property by establishing a Benchmark Criteria.
Utilise a Discounted Cashflow Forecasting (DCF) model to actively compare potential properties and determine the most appropriate and cost-effective option available, over the life of the proposed lease or investment.
Undertake Matrix Evaluation Analysis to examine and identify the key affecting factors (or critical components), of the decision making process. This methodical process is applicable to the selection and shortlisting of various properties, with the results presented as a total weighted score. This can be undertaken as a separate exercise, or in conjunction with DCF analysis.
Identify potential savings.
Inject a 'level of competition' into the selection process.
Lease new premises on optimal terms and conditions.
Undertake risk management analysis as an inherent part of the above process.
Peter Flynn
Director – Intercommercial Property Group
Our website address is: http://www.icpg.com.au
Intercommercial Property Group is an independent property consulting firm that provides specialist property advice, to ensure that the right property decision is made with confidence.
