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Perspectives on strategy

​​135 cost savings ideas—from CRE portfolio and organizational strategies to processes and tactics

In 2001, Jones Lang LaSalle introduced the Financial Performance Improvement Pyramid model to capture three levels of cost savings initiatives (Figure 1). CRE teams have raised their game dramatically since then, becoming more financially astute and attuned to their companies’ strategies, leveraging the strengths of alliance partners, and using technology and innovation to greater effect.

In the early stages of outsourcing, the greatest opportunities to realize cost savings are tactical—the proverbial “low-hanging fruit.” In real estate terms, tactical enhancements include renegotiating supplier contracts, streamlining leasing processes, disposing of vacant properties and optimizing facility management practices. Once these task-level efficiencies have been achieved, how can CRE teams continue to deliver savings?

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