Commercial Real Estate

Transcription

1 Solution in Detail Engineering, Construction, and Operations Executive Summary Contact Us Commercial Real Estate

2 Boost Your Real Estate Portfolio Portfolio Optimized Managing corporate real estate has long been low on the executive priority list. But pressure to reduce operational spending and carbon footprints as well as strict financial regulations, have changed this. Improved Profitability 40% Higher operating margin for firms in North America, Europe, the Middle East, and Asia with an enterprise-wide performance management discipline To succeed during times of globalization, real estate managers need to ensure compliance with tenant, tax, and financial reporting regulations. For example, operational leases have to be accrued according to U.S. GAAP. And in the future, once the planned new International Financial Reporting Standards (IFRS) for leases is deployed, you must be able to capitalize leases for the balance sheet. To achieve sustainability targets, you need a way to carefully track the energy consumption of commercial buildings, as well as accurately allocate costs for energy consumption to tenants. To fight competition, you need to make more informed investment decisions regarding construction and modernization projects. You also need a way to monitor projects closely, improve tenant relations, and standardize and automate real estate processes to reduce administrative overhead costs (for example, for lease administration and maintenance). SAP solutions help you by supporting comprehensive real estate lifecycle management. They cover investment, construction, sales, marketing, land ease, and space management, maintenance, and more. 2 / 23

3 Optimizing Real Estate Portfolio Optimized Improved Profitability SAP solutions help improve investment decisions, reduce project risks, accelerate lease-out processes, boost lease revenues, and control key dates. You can increase workspace utilization, reduce maintenance overhead, improve energy consumption reporting, and facilitate compliance with financial reporting standards. Best Run Engineering, Construction, and Operations To optimize investment and construction, you need a way to analyze your property portfolio, track investment decisions, handle construction services bids and awards, monitor projects and contractors, and manage cash. Sales and marketing departments need tools that drive campaigns for vacant space, help them qualify leads, match spaces with prospective tenants, process and track concrete opportunities, and create lease offers. Managing lease and space effectively demands that you track approval workflows, post leases according to accounting standards, escalate rents, and settle rents and service charges. You also need to track workplace occupancy and automate moves and room reservations. Optimizing maintenance and repair requires that you monitor budgets, measure energy consumption, recover expenses from common area maintenance, and handle maintenance, repair, and service orders. SAP solutions address all of these activities in an integrated way that supports end-to-end processes. 3 / 23

4 Improve Portfolio Profitability Portfolio Optimized Improved Profitability For real estate managers, the benefits of end-to-end real estate lifecycle management are enormous. You can increase return on investment by making better decisions and reduce instances of overruns by controlling budgets. You can reduce vacancies through faster lease-outs and increase revenues by invoicing more accurately. SAP solutions also help you lower administrative costs by automating processes and facilitating compliance, resulting in: Higher return on procurement, construction, and modernization investments Reduced project risks 36% Higher operating margin for organizations using IT to enable strategic and competitive advantages Fewer vacancies Increased lease revenues Faster energy reporting Reduced administrative cost Full compliance with financial reporting standards 4 / 23

5 Portfolio Optimized With SAP solutions, you can consistently promote your retail, office, and residential space. The solutions can help you identify the right offer more easily, provide fully consistent lease abstracts, and create a validated, detailed contract offer. Improved Profitability Integration between the SAP Customer Relationship and SAP Real Estate applications supports close collaboration between sales and marketing teams and lease administration staff. SAP Real Estate also supports activity planning for real estate units and makes it easy to adjust sales gradings in leases. In addition, it enables full Single Euro Payment Area (SEPA) compliance and faster periodic postings and reversals. Thanks to integration with the SAP Common Area Maintenance Expense Recovery application, it s easier to handle service charge settlements according to North American and Australian business practices (and based on tenant agreements). You can prepare information for analysis by migrating data from the SAP NetWeaver Business Warehouse application powered by the SAP HANA platform. Mobile solutions powered by SAP Mobile Platform support better work, service, and inventory management, as well as efficient auditing, approvals, and workflow management. You can manage inspections and maintenance rounds of on-site staff. The SAP Real Estate rapiddeployment solution enables a faster, better implementation of core real estate processes. 5 / 23

6 End-to-End Lifecycle Property Portfolio Lease and Space Posting Runs and Sustainability Enterprise Asset Why SAP? Property Portfolio Analyze the real estate portfolio, track investment decisions, monitor projects, and manage cash for adequate funding. Lease and Space Manage lease details, post leases according to accounting standards, escalate rents, settle sales-based rents and service charges, and manage corporate workplace. Posting Runs and Sustainability Monitor budgets, handle work orders, recover expenses from tenants, and optimize energy consumption. 6 / 23

7 Commercial Real Estate Property Portfolio Lease and Space Property Portfolio Lease and Space Run Postings and Sustainability Posting Runs and Sustainability Enterprise Asset Investment Investment Planning Property Acquisition Why SAP? Lease Administration Master Data Real Estate Search Content Offer Lease Contingent Rent Rent Escalation Service Charge Settlement Facility Space Move Room Reservation Master Data Work Order Energy Reporting The SAP solution covers investment planning to maintenance for better decision making, full budget control and compliance, faster lease outs, and reduced overhead. Accounting Asset Accounting Project Accounting Cost Settlement Receivables Budget Payables Cost Settlement 7 / 23

8 Property Portfolio Property Portfolio Capabilities Benefits SAP solutions enable you to oversee investment and construction of assets. Decide whether, where, and when to buy, construct, or lease property and then monitor budgets, schedules, and project scope. 14% Higher annual percentage savings in indirect material spend where multiple suppliers are included in erfx and reverse auction processes SAP solutions help you keep acquisitions and construction projects on track. You can: Collect and organize all investment ideas, track approval steps, and analyze decision criteria including costs, revenues, and qualitative aspects Create projects and track budgets, milestones, deliverables, and delivery dates Electronically invite bids from suppliers, award contracts, handle purchase orders, manage invoicing, and track planned, committed, and actual costs Manage land and building acquisition agreements including property details, documents, postings, payments, workflows, critical dates, and asset accounting 8 / 23

9 Drive Better Investment Decisions Property Portfolio Capabilities Benefits 14% Higher data accuracy if data warehouse architecture is continuously monitored and enables easy extensions and integration of new data Investment planning functions enable you to track all aspects of investment proposals, approval workflows, and ongoing projects. Property acquisition supports the acquisition of land and buildings by helping you collect all related documents, manage acquisition contracts, track their approval status, and manage critical dates. Construction management supports planning and monitoring of construction projects, including budgets, resources, milestones, work packages, and procurement of construction materials and services. Master data management enables you to maintain site, building, and land data. You can also turn this data into visualizations using CAD software and geographical information systems. Asset accounting supports the creation of new assets so you can capitalize on acquisition contracts and construction projects, as well as post depreciation. Vendor accounting enables you to post vendor invoices against budgets and pay open items. 9 / 23

10 Invest Smarter and Monitor Projects More Closely Property Portfolio Capabilities Benefits Empower real estate managers to make better investment decisions, reduce project risk, improve the purchase of construction services, and fully track property acquisitions. 53% More employees use analytical data when given access to advanced analytical tools without dependence on IT Now you can have insight into all investment alternatives before you make a decision as you explore different options with detailed descriptions, pictures, maps, planned costs and revenues, and approval status. Once you decide on an investment, you can oversee all aspects of construction with full control through functionality for tracking budgets, resources, scope, and timelines. It s also faster and easier to manage and collaborate with suppliers, thanks to consistent bidding, awarding, and purchase order processes. You gain full control of all acquisition and disposal agreements on land and buildings by tracking all terms, conditions, and related documents. You can also help ensure full financial compliance by capitalizing property acquisition and construction projects and automatically executing depreciation postings. And finally, you can create open items on the vendor accounts of the landlords and construction companies faster and easier, as well as efficiently take care of payments. 10 / 23

11 Innovations for Property Portfolio Property Portfolio Capabilities Benefits SAP solutions enable better investment planning and project management for construction, modernization, and refurbishment. Insert image # here 68% Higher operating margin for firms in North America, Europe, the Middle East, and Asia with mature IT strategy and business alignment practices The SAP Portfolio and Project application makes it easier to manage investment ideas, consistently align portfolio planning with project definition and execution, and gain more insight into financial planning and resource management. The SAP Enterprise Project Connection application provides an interface to legacy project management solutions. The SAP ERP application helps you efficiently manage data for large projects and plan dates for plant maintenance, customer service orders, and network activities simultaneously. 11 / 23

12 Lease and Space Lease and Space Capabilities Benefits In a competitive environment, you need to increase rental income and reduce rental expenses while increasing corporate workspace utilization. SAP software helps you do all this and more. 14% Higher data completeness for organizations with systems that integrate internal, external, structured, and unstructured data To help you efficiently manage leases and space, SAP offers integrated, comprehensive real estate lifecycle management solutions that support: of all lease details Straight-lining of operational leases for accounting purposes Rent escalations based on price indexes Settlement of sales-based rents for retail tenants Recovery of common area maintenance expenses Tracking of employee workspace and room reservations Payments from tenants to landlords Planning and analysis of costs and revenues from leases Allocation of space utilization costs to cost centers and projects 12 / 23

13 Manage Leases and Spaces Efficiently Lease and Space Capabilities Benefits 28% Lower IT spend where organizations have a consolidated single solution or platform landscape Manage leases from contract closure to termination, including payments, dunning, installments, sales-based rent settlements, rent escalations, and service charge settlements. Lease management supports comprehensive lease tracking, timely lease postings, and monitoring of critical dates and visualization in CAD software. Contingent rent enables the settlement of salesbased rent agreements. Rent escalation supports consumer price index rent adjustments, contingent-based rent settlements, or other criteria. Space management facilitates employee workspace assignments and space cost allocations. Move management supports move plans development and employee room assignment updates. Room reservation supports room planning, including service delivery and cost allocations. Cost accounting helps you plan costs and revenues, input activities, track actual cost and revenues, and calculate figures. Accounts receivables and payables enable the creation of invoices, payments, dunning, and installments. 13 / 23

14 Deliver Higher Lease Performance and Space Utilization Lease and Space Capabilities Benefits With this SAP solution, you can improve lease performance and facilitate full compliance with financial reporting standards. Reporting functions help you to make better lease management decisions. 14% Fewer days to close quarterly books if financial systems support internal and external accounting requirements The benefits of this solution are far-reaching. For example, you can lower costs from expense leases and increase revenues from income leases all while reducing administrative overhead by automating rent calculations, postings, and more. Automation helps you invoice contingent rents earlier (via automated calculation and settlement processes) and escalate rents in a timely manner (based on changes in the consumer price index or other criteria). Organizationally, it s easier to manage corporate workplaces, plan moves, and manage room reservations. The software centrally tracks workplaces and meeting rooms, the assignment of employees and service orders, and more. It also helps you efficiently create postings on accounts receivables and payables, create invoices, handle payments and collections, run dunning procedures, create installment plans, and withdraw open items. You can also quickly allocate real estate costs and revenues to cost centers, projects, and orders). 14 / 23

15 Innovations in Lease and Space Lease and Space Innovations enable a faster, more efficient process for lease administration. Capabilities Benefits Insert image # here Applications Lease administration functionality powered by the SAP Real Estate application gives people an enhanced user experience that increases efficiency. For example, it s easier to change organizational assignments, and leveraging full support of the SEPA mandate, they can automatically create real estate contracts. Grading rules in sales-based rent agreements can be readily updated via automated adjustments. Individual service charge settlements powered by the SAP Common Area Maintenance Expense Recovery application can be run faster and in a compliant manner for customers. 15 / 23

16 Posting Runs and Sustainability Posting Runs and Sustainability Capabilities Benefits 30% Lower rework time when maintenance is streamlined through the automation of monitoring, notification, and problem resolution processes Effective management of posting runs can help prevent delays and mismatches that cut into margins and the bottom line. Automating manual and paper-based processes saves time and money for service-charge settlements. The right support can also help accurately track energy consumption across multiple facilities. SAP solutions help integrate, streamline, and automate facilities operations, helping users gain process and spending visibility. The software can assist in monitoring budgets via alerts and sophisticated reporting. It helps create, process, and monitor maintenance and repair orders using standard processes that improve service levels. The software can automatically process service charge settlements, helping streamline processes. Users can access reports on energy consumption and related costs for each facility, helping them discover problems and implement cost-saving measures. The software can help allocate and recover expenses for common-area maintenance from tenants. SAP solutions provide the tools needed to enhance service levels while facilitating commercial real estate property management. 16 / 23

17 Manage Postings and Sustainability Posting Runs and Sustainability Capabilities Benefits 14% Lower forecast cycle time when plans, measurements, and simulations are continuous and based on recent insights With SAP solutions, you can proactively and efficiently manage maintenance, repairs, and energy use. Master data management enables full tracking of buildings and equipment so you can plan maintenance and visualize master data with CAD software. Work order functions enable work order creation based on ad hoc requests or maintenance plans. Monitor work orders and check budget utilization based on committed and actual costs. Service charge settlement calculates the portion owed by a tenant based on time of occupancy and energy consumption and posts to tenant accounts. Energy reporting tracks energy usage by assigning meters to buildings and creating measurement documents and compiled reports. Budgeting helps you control budgets and avoid overruns via extensive monitoring. Accounts payables functions support vendor invoice processing, including postings and payments. Cost accounting helps you plan costs, input activities, track revenue, and prepare key statistical figures. 17 / 23

18 Posting Runs and Sustainability Capabilities Benefits Higher Asset Value Through Efficient Energy Armed with integrated functions and timely insight, you can proactively budget projects, lower overhead costs, fulfill service level agreements, and allocate energy consumption by location. 35% Lower maintenance cost as a percentage of replacement value when planning includes skills, materials, tools, and job instructions With SAP software, you can tightly control maintenance spending by effective planning and close monitoring of budgets via sophisticated reporting and alerts. You can also use automated work order creation and service confirmation tracking to manage maintenance, repair, and service activities more efficiently. This results in better asset management that improves the overall state of your buildings and equipment. For example, you can establish preventive maintenance based on time and usage intervals to head off issues. You can improve operational efficiencies by using automated vendor invoice processing to reduce the overhead of invoice verification. And detailed meter readings and automated consumption calculations and reporting help you produce compliant energy reporting quickly and costeffectively. You can recover expenses for common-area maintenance from tenants in a faster, more compliant way by tracking tenant individual agreements and automating the settlement procedure process. 18 / 23

19 Innovations for Posting Runs and Sustainability Posting Runs and Sustainability Capabilities Benefits The SAP Commercial Real Estate application and related solutions support sustainability initiatives with better maintenance and repair management through linear asset handling. The solutions provide enhanced resource scheduling and the real-time visualization of assets. Insert image # here 29% Lower annual service and maintenance cost when all facilities track the same key performance indicators Applications SAP applications deliver key functionality to optimize asset maintenance and repair. The SAP Linear Asset application helps you manage rails, pipelines, and cables. The SAP Enterprise Asset solution makes it easier to manage maintenance orders, notifications, maintenance plans, task lists, and more. The SAP Multiresource Scheduling application makes it easier to align resources for projects, maintenance, and service. Visualizations The 2D and 3D functionality in the SAP 3D Visual Enterprise Viewer application and SAP Enterprise Asset increase closure rates of maintenance notifications and increase technician efficiency. 19 / 23

20 Commercial Real Estate Value Map Property Portfolio Commercial Real Estate Property Portfolio Space Lease Posting Run Lease and Space Posting Runs and Sustainability Asset Maintenance and Facility Operations Asset Planning and Scheduling Facility Operations and Maintenance Service Procurement Spare Parts Mobile Asset Enterprise Asset Why SAP? Equipment and Tools Equipment Planning and Scheduling Shipping and Tracking Pricing and Billing The SAP solution covers investment planning to maintenance for better decision making, full budget control and compliance, faster lease-outs, and reduced overhead. 20 / 23

21 Why SAP? Property Portfolio SAP provides an integrated, complete real estate management lifecycle management solution that s ideal for all types of real estate, including office, retail, industrial, residential, and land assets. Lease and Space Posting Runs and Sustainability Enterprise Asset Why SAP? Tight Integration Across a Complete Solution SAP software provides a lower total cost of ownership than stand-alone point solutions thanks to native integration with the SAP ERP Financials solution and the various applications providing functionality. Proven Real Estate Best Practices Customers in more than 70 countries spanning all industries have successfully deployed our solution. 24% Lower IT spend per employee when organizations have a single solution to manage your business Fast Time to Value for Core Real Estate Processes The solution has been broadly adopted by leaders across industries and offers comprehensive best practices that, when adopted, reduce time to value. 21 / 23

22 Find Out More About How Your Organization Can Become Best-Run Benchmark Your Performance Position your organization for dominance in this new economy with the business performance benchmarking program from SAP available free to SAP customers and select prospects. The SAP benchmarking program has helped more than 3,000 organizations assess their strengths, uncover areas for improvement, and identify best practices and IT strategies that generate clear, tangible value not someday, but today. Go Live in Weeks Here s the fastest way to run your business better: our rapid-deployment solutions. In one package, you get everything you need to be up and running quickly including preconfigured software and implementation services in just weeks. With a defined scope and predictable costs, there are no surprises. Join Your Community of Practices Visit valuemanagement.sap.com >> Visit sap.com/solutions/rds >> Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It lets members help one another solve problems, learn, and invent new ways to get things done faster. Find out how to connect with people, content, and resources. Visit scn.sap.com >> 22 / 23

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