Coretex uses a demand-supply methodology (as shown in the following diagram) to assess the need for property and to evaluate the performance of the current portfolio. We help organisations develop policies and strategies taking into account space requirements, utilisation, condition, cost, location and other key variables.
As well as more general support with the whole property strategy we have specifically helped organisations develop financial models to support overall business cases
The financial analysis used to evaluate the options can be based on the “Green Book” or specific corporate guidelines. The effective use of assets can be difficult to assess without cost modelling the portfolio and testing different capital investment strategies to see what impact they have on the revenue cost and the operational effectiveness of each solution. With property there may well be capital receipts from capital disposals and reduced operating costs; this may be offset by the need to invest in better technology, upgrading space and higher cost per square metre for facilities management as FM services are more intensively used.
To understand these competing receipts, costs and investments a net present value cash flow is used to assess the relative costs of competing approaches to managing the portfolio.
