Areas of Impact on Capital Improvements and Investments

Kevin Chrisp
When corporations relocate, expand or make tenant improvements to their space, there are several key areas that are usually of importance to them.

Corporate Culture, Future Proofing and Adaptability

A new space is most often influenced by the corporate culture of the firm and the aesthetics and layout are designed in a way to address how a firm will interact with that space. For example, agile working, remote working and collaborative working environments affect the occupancy rate and amount of real estate companies require to accommodate their needs.


Our Philadelphia office, pictured above, is a vibrant, open, collaborative space that is rightsized for our staff.

What is a trend right now may be obsolete in 12 months. When making corporate real estate changes, most corporations are going to want to focus on the longevity of the space and getting the most out of the space as possible, and in return reaping the most benefit out of their capital expenditure as possible. Having a real estate portfolio that adapts quickly to change is a valuable business enabler, allowing for growth / adaptation within an existing allocated amount of space, without growth in footprint. To help drive a firm’s business culture, businesses are often embracing cultural change; however, the workspace is the physical enabler of this.

Technology, Technological Advances and Resiliency

Technology today impacts every business and having the latest and being the most adaptable to technological advances is what differentiates a firm from its competitors. Incorporating this technology into a space and incorporating room for these advances is a key part to consider for most projects.

With many businesses operating globally the need to be in operation or online around the clock is important.

Many businesses need to factor in planning for emergencies, so they are still able to operate if primary power fails. With many businesses operating globally the need to be in operation or online around the clock is important. A more recent example of this includes when Super Storm Sandy hit New York City and a high percentage of the City was without power. Firms that did not have redundancy in infrastructure or operations, lost at least a week’s worth of business while the City managed to recover from the storm.

Capital Spend vs Impact on Operating Expenditure Costs

The ultimate goal of any business is to maximize the return on investments. While there is upfront capital spend, is this having an impact on operational costs in the future? Some of the largest impacts on the future operational costs can be achieved through smart working environments, less space and fewer buildings.

While there is upfront capital spend, is this having an impact on operational costs in the future?

Any traditional project manager can help an end-user get from point A to point B in the journey, but a true consultant will be partners to the client and will offer insight and data to help corporate occupiers make more informed decisions. The differentiation comes with providing end to end solutions to business problems. In my next article, I will cover what clients truly need their consultants to deliver.

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