How to Align Your Property Portfolio with Business Objectives

Category Editorial

How to Align Your Property Portfolio with Business Objectives

A practical framework for CFOs and COOs looking to future-proof their footprint

Changing workplace models, and increased board-level scrutiny, property strategy has become more than a facilities concern-it's a core business decision. And yet, many South African companies still treat their real estate as a static overhead, not a dynamic asset.

At Spire, we believe property should work for your business. Here's a clear, actionable framework to help CFOs and COOs align their property portfolio with strategic goals-while creating the flexibility and resilience needed for the road ahead.

1. Start with the Business, Not the Buildings

Too often, property decisions are made in isolation. A lease renewal gets signed because it's "easier than moving," or new space is acquired based on availability, not fit. But if your property footprint isn't supporting your workforce, customers, or capital strategy, it's draining value.

Ask:

• What are our business goals over the next 3-5 years?

• How is our operating model evolving (e.g., hybrid work, decentralisation, expansion)?

• Are our current locations and space types aligned with those plans?

Takeaway: Your real estate strategy must reflect your growth strategy, workforce strategy, and risk appetite. Anything less is a liability.

2. Map Your Current Portfolio - Functionally and Financially

You can't improve what you haven't measured. Step one in aligning your portfolio is gaining clear visibility into what you have, what it costs, and how well it's performing. Don't just look at rent per square metre. Consider lease commitments, flexibility, exit options, and operational inefficiencies.

Include:

• Lease terms, expiries, escalation clauses

• Occupancy levels and space utilisation

• Maintenance and capex obligations

• Geographic spread and accessibility

Pro Tip: Create a portfolio dashboard that links property data with financial metrics and business KPIs. Spire helps clients build this kind of insight so decision-making isn't based on guesswork.

3. Define What 'Fit for Purpose' Means for Your Organisation

"Fit for purpose" will mean something different for every business. For a logistics company, proximity to ports and loading efficiency might be key. For a financial services firm, client-facing space and hybrid-ready offices are critical.

Key Considerations:

• Do your spaces enable productivity and collaboration?

• Are you optimising space per headcount, or overpaying for underutilised square metres?

• Do your facilities support ESG goals or create compliance risk?

🛠 Action Step: Build a list of "must-haves" and "nice-to-haves" across each asset. Use this to evaluate whether to stay, consolidate, relocate, or divest.

4. Incorporate Flexibility and Optionality

Market conditions and business models change-your property portfolio needs to change with them. Rigid leases or underutilised assets can tie up capital and reduce agility.

Consider:

• Shorter lease terms or break options

• Shared office environments or flex space

• Sale and leaseback opportunities to unlock capital

Case in Point: We recently helped a regional business consolidate from four underperforming sites into two strategically located hubs. They cut costs by 28% and improved staff accessibility and energy efficiency-without sacrificing growth potential.

5. Model Scenarios with a 'Stay vs Go' Analysis

Every major lease decision-renew, relocate, consolidate, or exit-should be supported by a side-by-side scenario analysis. This isn't just about cost. It's about aligning location, lease terms, workforce needs, and business risk.

Spire's Approach:

• Compare occupancy cost vs productivity gain

• Assess long-term viability of each option

• Include fit-out, moving costs, and downtime

• Engage decision-makers early with visualised outcomes

6. Build a Continuous Planning Cycle

Once your portfolio is aligned, don't treat it as "done." Set up a rolling review process-quarterly or biannually-tied to broader business reviews. This helps catch lease risks, occupancy shifts, or business changes early.

Best Practices:

• Maintain a real-time lease and expiry tracker

• Engage a trusted real estate advisor who understands your sector

• Feed real estate strategy into annual financial planning cycles

Treat Real Estate Like the Strategic Asset It Is

As a business leader, your mandate is to drive efficiency, resilience, and return on capital. Real estate-when managed intentionally-can support all three. Whether you're planning for growth, managing contraction, or simply trying to do more with less, aligning your property portfolio to your business objectives is no longer optional.

If you'd like to explore this in your own organisation, let's talk.

💬 Need a strategic property review?
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Author: Spire Property Solutions