Flexible Real EstateManagement

Presented by

Jeremiah Chibvuri

SAP Flexible Real Estate Consultant

Agenda

Agenda

•Streamline business processes by integrating real estate system with corporate system

•Create greater flexibility and higher quality of information due to enhanced data transparency

•Lower costs and frequency of vacancies via more effective property management

•Reduce transaction costs and increase operational efficiency; outsource real estate management

•Improve decision-making and investment strategies through accurate cost/revenue performance data

•Strategically develop and manage real estate portfolios

•Optimize efficiency by including real estate management in corporate strategies for controlling, procurement and services

•Increase potential cost savings: Typical cost for medium equipped office space is 20 USD per square meter and month

Today’s Challenges

Renewed focus on corporate profitability driving attention to real estate efficiency

Complexity of corporate real estate contracts and relationships is increasing

Many companies turning to external providers to outsource real estate management

Real Estate Trends

▪ Companies must recognize real estate as significant cost and value driver of the business and manage real estate more efficiently.

▪ Businesses must forecast and manage vacancies in a tighter fashion

▪ Companies must integrate real estate management solution into the overall enterprise systems landscape

▪ Companies must identify methods to share and collaborate with external property managers, potentially through real estate portals

Real Estate Function Overview

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SAP Real Estate Management

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Master Data

Master Data

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Partner Management

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Contract Management

Contract Management

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Service Charge Settlement

Service Charge Settlement

Distribution of costs per Settlement Unit

Display results per settlement unit lease-out apportionment factor

Controlling: Actual costs per Rental Unit

Drilldown: cost element usage type contract type regional location

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Integration

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Property and Building List

Rental Objects List

Tenant List per Property

Lease Register

Occupancy listing

Tenant profile

Property expenses detail

Periodic occupancy reports

Security Deposits paid

Charges breakdown

Receipts breakdown

Market rent analysis

Utility consumption reports

Availability audit – vacancies, moves in/out, lease expiry dates

Reporting

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In Conclusion: Why SAP Real Estate

Maximize Utilization of Resources and Reduce Duration and Frequency of Vacancies

Achieve Maximum Efficiency in Procurement Costs and Processes

Optimize Maintenance Planning and Control

Improve Decision-making Effectiveness of Liquidity, Investment Portfolios and Risk

CFO

ensure shareholder value is maximized due to increased real estate asset productivity

integrate real estate management with financial and overall enterprise applications

maximize rental revenues while minimizing usage costs

optimize real estate portfolio mix

Real Estate Manager

manage occupancy rates, site usage

integrate disparate site/location information

perform scenario planning for occupancy and costs

optimize cost-benefit ratio in real estate portfolio

improve tenant relations

Facilities Manager

reduce facility administration costs

analyze facility cost across all locations

schedule and monitor maintenance activities

streamline infrastructure management services

In Conclusion: Why SAP Real Estate

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Question and Answer

Thank You

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