Catalyst for change in corporate real estate
Need help understanding the new lease accounting standard and how your business may be impacted?
Implementation of the new requirements may have a significant impact on companys' financial statements and require substantial changes to processes and systems.
Many companies, especially those that occupy significant real estate as part of their operations, are already reconsidering their real estate strategies due to changes in operating environments. In many cases,
this reconsideration is part of an effort to align operational and real estate strategies but also to unlock shareholder value in existing assets or to provide growth capital for the continued expansion of capital-intensive industries. The new lease accounting standard may serve to further increase the focus on real estate in general, and leasehold interests in particular.
Active management of real estate assets is becoming a strategic imperative for users, and the newly established lease accounting standard is an incentive to reconsider real estate strategy.
Management at companies of all sizes and in all industries needs to be prepared to provide shareholders and investors with a well-articulated real estate strategy that is supported by a proactive assessment of the company’s existing property portfolio, including both owned and leased assets. As a result, most companies need a thorough real estate strategy that is aligned with overall corporate strategy.
The benefits of adopting an integrated real estate strategy include: