Property and FM: Time for closure ties

Five years ago, protestations for a facilities manager to take on a new building were far less audible. Then it was commonplace to be presented with a key to the new space having had no hand in the decision-making process, only to find that the operational costs of managing the building could have been significantly reduced had an efficient facilities professional been part of the project team. Although this is slowly changing, in some part, due to the PPP life-cycle models, with the economic imperatives that exist it is apparent a more joined-up approach needs to be significantly amplified.

It is conventional within the UK in so far as seeing a divide between property and facilities management. Yet when we look objectively at what the activities are, there is ultimately one purpose for having the property in the first place and that is to provide a space in which the organisation can operate in the best way possible. So it is surely time to pull down the fence and start working together in a more structured way as commonplace in other parts of the world.

Any organisations, irrespective of their market, are looking closely at real estate costs. It is the one area of the business, with the exception of those trading within the space (such as retailers), that isn’t a core activity. Developing plans to make sure that the right real estate model meets the businesses needs, both in terms of type and size, could surely drive efficiencies without impacting on the organisation’s ability to perform and compete in the market.

The drivers for this examination of need are not purely occupancy ratios or even location, energy usage is also a consideration. This is due in part to rising energy costs, but for larger organisations, the Carbon Reduction Commitment (CRC Energy Efficiency Scheme) is looming large as the first sale of allowances occurs in April 2011. Traditionally the role of the property department has been to assess need and procure the right type of space on behalf of the organisation and then dispose of those who are no longer required while ignoring how it will be managed. The facilities team are not experts on selecting location, or negotiating lease terms and service charges, yet assessing space requirements and identifying potential operational difficulties with the building infrastructure are well within the facilities remit.

Of course, it’s not always possible to effect such a wholesale change in a short period of time. It goes without saying that professional services such as rent reviews, property search and disposals are at the core of the property profession and require appropriate training and expertise. That doesn’t mean that there aren’t ways that facilities management can support property to greater effect. Facilities management have to play their part by believing they can contribute to the property side of the business and understand where they can add.

Ultimately, it would be useful to apply a term that unified the activities of sourcing, managing and disposing of the real estate so that everyone within separate teams could appreciate what their role is in the process. It could be built-environment professionals, but somehow that denotes an affiliation more with the property than what it could be used for. It seems that now is the time not just to unify the teams but to concentrate on how the real estate can enhance an organisation’s performance and be part of the business-wide drive for efficiencies.