Team #15073 7/31/2015

Modern CRE Portfolio Management in

Financial Services

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CRE Recommendations

Business Intelligence Model• Utilize organizational data to

evaluate property• Optimize decision making

Our Solutions• Rent for Equity• Collocation Model• Super Nucleus Models• Modern Mobility Programs

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Knowledge from Data:Using the Business Intelligence Model• Companies persistently aggregate volumes of operational data• Only a small fraction is used for reporting• Financial institutions are becoming tech IT companies• Utilizing these pools of data is a significant goal• Applying BI models to CRE management is currently rare

• Indexes locational data • Provides ranked output for questions asked during CRE planning• Success depends on:• Identifying valid and useful sources of information with applicable data • Strong correlation to key variables identified in past operational results

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• Build a series of unsupervised models for predictive analysis output • Regression analysis, neural network, and decision tree models

• Use high-level questions to develop the model• Follow with subordinate, more specific queries • Identifies sources of data that provide useful information • Help train and implement the analysis

Knowledge from Data:Using the Business Intelligence Model

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Rent for Equity

Key goal: Minimizing costs for hard to release, under-utilized property

Grant zero-rent agreements to startups whose products strategically align with our firm's mission • Our vacant space can improve their success

while optimizing our use of space • Startups are explicitly chosen to align with

corporate goals• Bill utilities and building operating expenses

to the startups, but not rent or taxes

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Collocation

• Lease excess space to contracting labor companies for their office functions • Trade discounted leases for reciprocal service discounts • Foster a “same team” mentality in a shared office • Enhance trust in us• Less likely to cancel their leases or revoke their work contracts

Share our space with strategic and complimentary services

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Collocation• Collect parties who assist with significant financial decisions• Legal aid, financial planning, or real estate professional are typically

off-site• Expedite large customer transactions with one-stop shop• Specific primarily to retail locations

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Super Nucleus CRE Model

• Create new CRE department to facilitate collaboration between groups:• Internal - IT, HR, Legal, etc.• External - parties providing brokerage,

architecture, interior design, lease administration, and facilities management

• Partner CRE departments with on-demand external service providers • Manage portfolio, reduce CRE costs,

expedite new market penetration, improves agility

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Modern Mobility Model• Use the same space for more employees • Mitigate WFH problems• Builds culture and aids promotion and innovation• Seasonal Span Example:• Team A works in office for three months, then works from home for three

months• Team B works opposite schedule, yet share the same desk space• Doubles the people in one space before considering graveyard or swing shifts.

• Alternatively: • Cross-pollinate teams where some member of Team A and B share the office• Another subset of their teammates replaces them at switching time

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Align Operations with Strategy

Our solutions support the corporate goals with increased flexibility, agility, and utilization that come from our real estate portfolio.