"Our corporate services program is founded on the premise that each corporation has its own unique set of resources, business objectives, and operating procedures, and we tailor our services to those aspects," says O.B. Upton, executive managing director of corporate services, based in San Francisco.
Upton also is quick to point out that these services do not apply only to the larger corporations. "There are a number of smaller, though fast-growing companies, that need the same services as larger corporations. Many of these companies will be expanding, and real estate is an essential factor in their growth. Across the board, what is important about outsourcing is that companies can task out certain types of business to focus on their core objectives. We're helping to free them of certain tasks that will divert their resources -- often personnel -- from achieving their objectives. We like to think that we are efficient, and that the costs of outsourcing are a worthwhile investment."
Upton says that issues like property management, tax appeals, auditing and management often are better left in the hands of specialists.
"We have more than 100 professionals devoted to research in those areas alone. In today's environment a company like ours must bring sophisticated process management in communication and information technology to overlay on top of the local network and expertise of the client. What makes outsourcing successful on a national or international basis is the ability to bring this technology to combine with local market knowledge to provide the services efficiently. It takes an enormous investment on our part to operate these systems worldwide, but the technology makes it profitable."
"In the end, outsourcing is a means for Corporate America to make its real estate more efficient, and essentially do what other industries have been doing for many years" says Bruce Mosler, regional presiaent and vice-chairman of the New York-based Galbreath Co., whose major emphasis is in commercial properties. "As these companies become more aggressive internationally, the coordination of real estate commitments requires an outside vendor. There is simply more responsibility and less people to handle the job. Therefore, we are asked to deliver that expertise and service."
One of Galbreath's major clients, Citibank, is a case in point. "They have millions of square feet domestically and internationally," Mosler says. "The key to our success with them is being honest as to where we can deliver service. We can't be all things to all people, so we focus on our capabilities in the 14 cities we operate in America and our overseas joint venture partners. In those areas, we deliver."
Mosler believes that the strategic processes of outsourcing -- analysis, budgeting, projections -- "is at least as important as the mechanical processes involved in providing the client with the best service and consultation. The key is being able to balance both aspects of the relationship to serve the client's objectives.
"Real estate firms have a due diligence threshold," Mosler concludes. "All of us are in business to make a profit, but there's a way to do it fairly so that clients want to continue the relationship. If we do our homework, staff the assignment properly, think strategically, and maintain communications,
we will be successful. That's what clients expect, and that's what they pay for." For Galbreath, the proof has been in one of its larger assignments, working for Dayton, Ohio-based Mead Corp. Begun in September 1994, the assignment involves the administering of 13.5 million sq. ft. in 46 states, as well as operations in Canada and Mexico. According to Harry Henshaw, senior vice president in Galbreatws Columbus office, "We have become a real partner with the client, in this case Mead Corp. We are involved in day-to-day operations, and that includes the no-nmoney transactions such as right-of-way, easements, agreements and other highly detailed tasks that keep us talking every day, in addition to the larger transactions.
"This assignment provides us with the opportunity to serve corporate objectives and further our own expertise by internal development of resources, not just technique." Henshaw believes no matter how large the assignment, the ethic of service is still the most important aspect of the job. "We have to learn how to integrate our resources with an existing real estate department, or provide resources for a company that has dosed down that aspect of business, or help expand those companies that have a different objective for their real estate."
In other words, one must be ready for anything.
No comments:
Post a Comment