Trash or Treasure? Connecting Corporate Real Estate to People, Place, and Process

by Ed Prins, AIA

Have you considered whether your real estate truly serves as a #strategic #asset that warrants attention throughout its entire life cycle, from #acquisition to #disposition? Strategic assets are meticulously designed or planned to provide specific advantages. Just as you view your products as strategic due to their careful design to meet customer needs and your human capital as strategic for contributing essential skills, why not regard your corporate real estate assets in the same light?

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Why not integrate your real estate into all aspects of your #strategicplanning, making its connection to your operations as vital as that between marketing and sales?

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Allow me to illustrate this concept with a story from my Corporate Real Estate Fairy Tales Series (inspired by a true story). In a quaint Southern town with its nostalgic 1950’s Main Street stores half-empty and a stately stone courthouse on the main square, we find our protagonist, Millie. Situated on the town's outskirts, Millie is an outdated two-story manufacturing mill, a relic of bygone industrial eras. Her once vibrant red bricks now faded and cloaked in decay, Millie fell victim to the relentless Global Marketplace Monster that stealthily drained her vitality overnight, relocating her manufacturing operations to a more cost-effective offshore market.

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On a sweltering southern summer day, a weathered For Sale sign adorned Millie's once-proud facade, silently pleading with passing cars like an abandoned shelter dog—please choose me. Was there any hope that someone would heed this call?

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However, what if Millie possessed more than mere real estate value? How could she transcend being just another property for sale? Here is where Millie's fortunes were about to change, as fairy tales often do. In need of a savior from corporate neglect, Millie's owners shifted their perspective from selling an empty building to embracing a transformative opportunity.

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Recognizing the slim chances of finding a new owner swiftly, Millie's owners enlisted the expertise of a white knight—a seasoned professional who had revitalized numerous outdated manufacturing facilities in small towns deemed obsolete by others.

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The white knight embarked on unraveling Millie's story by delving into her connections with people, place, and process. Rows of idle spinning equipment once filled her floors with echoes of productivity now silenced witnesses to her decline. Could these machines be revived for new purposes? What if this underwear manufacturing mill could transition into producing other spun cotton goods? Did the generations of skilled workers who grew up within these walls possess talents that could enhance Millie's value? Collaborating with the town, county, and state to implement economic incentives further bolstered the mill's potential as a viable enterprise.

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Empowered by insights from Millie's owners that aligned her true assets—people, place, and process—the white knight transformed what was initially a discounted real estate sale into an appealing opportunity tailored for a specific customer.

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Millie realized her equipment could create more than just underwear—it held potential for diverse products. The dedicated workers within her walls possessed specialized skills suited for the spinning industry. With innovative strategies to enhance Millie's appeal, the white knight became her advocate, crafting a new narrative around her faded exterior.

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Presenting Millie's story to economic development agencies ignited enthusiasm for her assets, leading to the provision of incentives aimed at attracting a new user. With renewed hope for a brighter future awaiting the right customer match, Millie stood poised for transformation.

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Identifying five potential customers intrigued by Millie's unique assets, the white knight successfully attracted an industrial gauze company from the north. Recognizing the advantages offered by the old mill—low startup costs, trained workforce, and governmental incentives—the company seized the opportunity to expand its operations.

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Through the white knight's intervention, Millie was saved, instilling hope in both the town and her dedicated workers. The owners of Millie could proudly claim a positive outcome benefiting all stakeholders. Just like many fairy tales conclude with happy endings, so does this one. Millie proved to hold strategic value beyond her original ownership thanks to the expertise of the white knight—highlighting that real estate is not merely about physical properties but about selling an idea.

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The moral of this fairy tale underscores that perceiving corporate real estate as strategically valuable throughout its life cycle not only enhances operational efficiency but also contributes positively to your bottom line upon completion. Connect with us at [email protected] www.globalintegratedassets.com . We make #corporaterealestate connections valuable!