Managing real estate to build value

Type Magazine Article
Author(s) Apgar,M.
Publication year 1995
URL (web address) http://proquest.umi.com
Notes ID: APGARM1995; A rare HBR article devoted to real estate. Apgar's prime concern is to highlight how global multinationals have been able to reduce cost by focussing business users onto space reduction. IBM for example achieved $1.4billion and AT&T $500 million. Apgar also argues for multiplication of such savings by price to earning ratios as an indicator of shareholder value, and for the need for an overview of the entire asset portfolio. His suggestions are the basics, Amount, Price, Grade, Area and Risk (weighted according to individual company priorities and benchmarks). Productivity is not dealt with, though the accompanying CEO case (Weissman, 1995) specifically mentions creating physical environments where "$people can build links"$. Culture is not generally dealt with though an IBM manager is quoted as saying "$we are breaking the belief that offices are entitlements" $
Publication Harvard business review
Volume 73
Issue 6
Start page 172-174

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