Navigating Change in Large-Scale CRE Portfolios

Seven Lessons Learned

1. Demystifying the Transition Process in CRE Outsourcing
   CRE transitions can be intimidating.  But transitions are simply the process of transferring management and operational responsibility of a real estate portfolio from an internal team to an external service provider, or between service providers. Far from a “lift and shift” of services, it’s a critical change process that demands a well-thought-out strategy to integrate processes, technologies, and personnel, while maintaining continuity and efficiency. Our goal at Cushman & Wakefield is to demystify the process. We transform the intimidating task of CRE portfolio transition to make it a positive and value-driven journey.
   
   
2. The Importance of Change Management and Stakeholder Communication
   Change management is a critical aspect of any transition process. It involves not just managing the shift in services but also addressing the human element–how changes affect people. Effective communication with stakeholders is crucial. Clients must explain the reasons for transition, including the benefits and organizational impact, to enable smoother change and align expectations.
   
   
3. Ensuring Seamless Performance
   A critical goal in any transition is avoiding performance dips during handover. When looking for an outsource provider, businesses should look for a partner that meticulously plans to ensure there is no disruption in service quality or operational efficiency. This involves detailed preparation, with robust training of the incoming team, and close collaboration with the client to understand and align expectations and requirements.
   
   
4. The Role of Data and Client Engagement
   A significant challenge in the transition process is the availability and accuracy of data. Comprehensive data collection and management is essential for understanding transition scope and requirements. Equally important is client engagement. Clients must be active participants in the process, providing essential information, setting realistic expectations, and being transparent about concerns and objectives.
   
   
5. Leveraging Expertise for Seamless Integration
   A dedicated transition team brings a wealth of expertise and a proven track record in managing transitions effectively. It’s essential to include certified project managers and change management experts who focus on agility and creating flexible solutions tailored to each client's unique needs. An integrated approach should be adopted to efficiently manage all transition aspects, from data management to stakeholder engagement.
   
   
6. The Outcome: A Value-Driven Transition
   The end goal of a well-managed transition is unlocking value for our clients. Prioritizing clear communication, detailed planning, and client engagement ensures a smooth, transparent transition that is aligned with long-term objectives. This approach not only mitigates risks but also sets the stage for immediate and sustained improvements in service delivery and operational performance.
   
   
7. Transition as a Road to Enhanced Value
   Transitioning large-scale CRE portfolios is complex.  But with a strategic approach, deep expertise, and a commitment to partnership and transparency, it can be a rewarding journey. At Cushman & Wakefield, we are dedicated to guiding our clients through this journey, ensuring a transition that is not just about change, but also about progress and value.

Listen and subscribe to the Team Around the Table podcast on your favorite podcast platform.