Is this Your Scenario?

Your organization has announced a major initiative to cut costs significantly. Naturally real estate occupancy will be a focus since it is in the top five expenses for most companies.

Optimizing space usage, rent renegotiation strategies, subleasing or disposition programs etc. are all part of your immediate plans for review. But in order to take advantage of these programs, you need to better organize. Further, you need the resources to be able to manage projects, organize the increaing document activity that results and be able to measure results for management reporting.

Establishing the foundation for these programs will be the critical factor in their success or failure and in your ability to measure progress toward results. You don't want to leave this measurement function up to the groups whose activities you are going to evaluate.

Common Questions: PSG's Answers

Have you been given a mandate with specific targets and specific time frames but you do not have the specific data/information from which to begin? PSG’s experience in having worked with some of the largest companies in the world will allow you to leverage their case studies to move quickly.

Are you talking to your broker about how to make changes to your portfolio but the tools do not exist to view where those opportunities may exist? PSG’s reporting features “Rent Outliers”, Capacity Utilization and other key metrics that can help you act more strategically.

Have you considered lease audit as a means of quickly recovering on past overpayments and you’re even willing to give up 1/3 of that savings just to find it? PSG has a more thorough and less expensive means of introducing audit on a system wide basis that improves results. Our layered audit approach leaves more of the savings with you as well as eliminates future loss.

How is PSG able to help companies like ours? With the experience built and tested over several real estate “up” and “down” cycles, PSG knows how to build tracking systems that enable your strategies.

First, PSG’s most senior staff will meet with you to identify the targets and gain an understanding over what is already in place.

Next, PSG deploys both project and ongoing support staff to recover past errors and build systems for hard and soft cost future savings.

PSG’s reporting will ensure that you can measure and specifically report on progress.

What results can I expect? Our experience has been that organizations that have not engaged in a retroactive reconciliation and intentional, proactive compliance review before rents are paid will uncover about 3-5% of their annual rent expense going backward and savings of 5-10% going forward.