Better property management could save German firms 10% - survey

German listed companies could cut their overheads by 10% if they managed their real estate more efficiently, according to research by CBRE.

Firms could cut up to €3 bn through savings in areas such as maintenance costs, repairs, rent and insurance premiums, a survey by the global real estate advisor says.

The study analysed the real estate management practices of all 30 major German firms trading on the Frankfurt stock exchange, to see how efficiencies could be gained from centralising their property portfolio management requirements.

The proposed reforms include consolidating floor space, especially if a company is paying premium rents, sourcing cost-efficient locations and improving building facility management by using forward planning and preventive maintenance.

CBRE also urged companies to understand their ownership strategy when deciding whether to rent or own outright, taking into account factors such as potential refurbishment costs.

Martina Williams, head of client solutions Germany & Continental Europe at CBRE, said: ‘Leading German companies could save at least 5% of their overall profits if they take a more strategic approach to property portfolio management.

‘A non-uniform and single country approach limits cost-saving potential. Instead, if a holistic big picture strategic view is taken combined with active monitoring of leases, locations, and maintenance costs then real estate savings can run into the double-digit range.’