Planning for the future of property with limited information

The one question that most companies would like to have answered now is - how will e-commerce affect our business over the next two years?

Consultants AWA, who specialise in work and workplace issues, interviewed facilities and real estate managers at 16 of the UK's leading financial services organisations and discovered that their greatest area of concern is the internet. What they really want to know now is the extent to which their market share may be captured by new internet competitors, the impact this would have on the number of employees and their location, and what that would mean for the existing property portfolio.

Of the top six concerns expressed about the near-term future, four focused on technology and building issues. The remaining two centred on industry regulation and the economic climate.

Overall, there is a widespread belief amongst FMs and estate managers that the merger and acquisition trend will continue, based on the perceived benefits of economies of scale.

When asked about the barriers currently inhibiting their companies from moving towards a more competitive cost base, respondents cited:

• incompatibility of location, where suitable buildings can't be provided in areas of good labour supply, for example
• lack of building flexibility, with some saying this feature is more important than cost
• inadequate investment, especially where it is difficult to demonstrate quantifiable benefits
• premises disposal, in particular the difficulty of removing the burden of surplus property.

It would be interesting to know how often issues like these figure in M&A strategy decisions Ð or is property always secondary to bigger financial considerations?

Some of these issues have been raised on the i-FM Discussion page. Click here to join in.

Elliott Chase