Managing real estate

How Should C-Suite Executives Manage Their Real Estate?

Reading Duration:

Minutes

March 14, 2025

This is the third and final article in a three-part series exploring the key insights from CBRE’s recently published report entitled “C-Suite Perspectives: Empowering Business Through Real Estate.”.

The report provides an intriguing and informative view of the boardroom and its view on its real estate assets. What is clear from the report is that there has been a significant shift in how top executives perceive real estate not just as a cost centre but as a strategic asset with untapped potential to drive business value.

Leaders across industries are increasingly recognising that real estate decisions influence operational efficiency, employee productivity, and overall organisational performance.

The first article was published two weeks ago and is entitled How Should C-Suite Executives View Their Operational Real Estate? and explores their current perspective on the role of real estate within their businesses. If you haven’t read it, I recommend that you go there first...<click here>

The second article is What do C-Suite Leaders Want From Their Real Estate? was published last week and again I recommend that you go back and read it, as it will highlight the report’s findings on their priorities, expectations, and desired outcomes...<click here>

This week we will focus on how the C-suite executives prefer to manage their real estate, where we will unpack the C-suite's preferred strategies, models, and approaches to real estate management.

About the Survey

CBRE’s research was conducted in the second half of 2024 and gathered insights and perspectives from leaders in manufacturing, financial services, technology, healthcare, and retail. The respondents were 252 C-suite executives representing companies with a minimum of 3,000 employees and spread evenly across a diverse range of roles.

In these articles, we will unpack these insights and explore what they mean for the future of workplace strategy and facilities management.

Let’s get on with it.

How Do C-Suite Executives Prefer To Manage Their Real Estate?

Corporate real estate (CRE) is no longer seen as just a cost centre; it has evolved into a key strategic asset that influences business resilience, workforce engagement, and financial performance.

C-suite executives recognise the growing importance of real estate in achieving broader business objectives, which is why they are becoming more actively involved in real estate decision-making.

5 Key Takeaways

1. C-Suites Want More Engagement in Real Estate Decisions

Real estate decisions have long been left to specialised teams, but the tides are shifting. Executives want greater visibility and influence over CRE functions:

76% of C-suite leaders want to be more involved in real estate decisions.
60% of organisations have already established direct reporting lines between CRE teams and the C-suite, with an increasing number of businesses planning to follow suit.
68% of these reporting lines were established in response to the COVID-19 pandemic, highlighting the increasing strategic importance of real estate.

2. Centralised Real Estate Reporting is Now the Norm

In most enterprises, real estate reporting structures have been consolidated to ensure alignment with business strategies:

97% of companies now have a globally or regionally centralised real estate function.
For 60% of these organisations, the real estate function reports directly to the C-suite.
The COVID-19 pandemic accelerated this shift, reinforcing the need for strong governance and centralised oversight of real estate assets.

3. CRE Reporting Lines Extend Beyond the CFO

While cost management remains a priority, many organisations view real estate as more than just an expense. Instead, they see it as a driver of business growth, operational efficiency, and employee experience:

Two-thirds of direct reporting lines are not to the CFO. This suggests that real estate is being increasingly viewed as a strategic function rather than just a financial concern.
However, the CFO remains the most common reporting line for CRE teams, reinforcing the financial significance of real estate decisions.

4. C-Suites Intend to Be More Hands-On with Real Estate Teams

Executives are pushing for a more collaborative approach between leadership and CRE teams:

The C-suite is increasingly prioritising direct engagement with real estate decision-makers.
Rather than treating real estate as a passive asset, executives want to actively shape strategies that align with broader business objectives, from talent acquisition to sustainability initiatives.

5. Organisations Need to Strengthen C-Suite and CRE Team Collaboration

While executives recognise the importance of real estate, effective engagement is still a work in progress:

Companies where the CRE team reports directly to the COO report significantly higher effectiveness in C-suite engagement with real estate.
To fully leverage real estate as a strategic asset, organisations must invest in better alignment between CRE functions and executive leadership.

Insight: The C-suite's Evolving Role in Real Estate

Centralised Real Estate Decision-Making

C-suite executives now recognise that real estate is not just about managing leases or reducing costs, it plays a crucial role in shaping company culture, employee well-being, and corporate resilience. To maximise its value, most enterprises have centralised their real estate functions, ensuring that CRE teams are directly accountable to senior leadership.

With 97% of companies adopting a centralised approach, real estate decisions are now being made at a higher level.
Direct reporting lines have increased significantly since the pandemic, with a growing focus on strategic alignment rather than purely financial oversight.

Who Owns the Real Estate Function?

The way real estate teams report to the C-suite reflects its evolving role:

While direct reporting to the CFO remains common, a growing number of organisations are placing real estate under other executive leaders, such as the COO or Chief Strategy Officer.
This shift highlights a broader trend: real estate is increasingly being seen as a business enabler rather than just a financial burden.

The Push for Stronger Executive Engagement

Executives are pushing for more active involvement in real estate decisions:

Instead of leaving real estate to operate independently, C-suite leaders want greater integration between real estate strategy and corporate objectives.
This shift requires stronger communication, data-driven insights, and a shared vision between CRE teams and executive leadership.

3 Key Considerations for Business Leaders

1. Strengthening Engagement Between C-Suite and Real Estate Teams

To drive real estate decisions that align with broader business goals, organisations must create more structured engagement between leadership and CRE teams:

Encourage more frequent reporting and dialogue between CRE teams and executives.
Develop joint strategic objectives that integrate real estate into core business functions.
Increase transparency around real estate metrics, helping leadership make data-driven decisions.

2. Elevating CRE Teams from Cost Managers to Strategic Partners

To maximise the potential of corporate real estate, leadership teams must shift their mindset:

Rather than treating real estate as just an operational expense, view it as a key enabler of talent retention, sustainability, and business resilience.
Provide CRE teams with the tools, data, and strategic direction they need to operate effectively at an executive level.

3. Creating More Direct Organisational Alignment

C-suite executives and real estate teams must work more closely together to ensure that real estate strategies support corporate objectives:

Foster cross-functional collaboration between CRE teams and other business units such as HR, finance, and operations.
Ensure that real estate planning aligns with broader business goals, from workforce strategies to sustainability initiatives.
Promote real estate leaders to more strategic positions within the organisation, ensuring their voices are heard at the executive table.

Final Thoughts: The Future of C-Suite Involvement in Real Estate

The days of treating real estate as a back-office function are over. C-suite executives are becoming increasingly involved in real estate decision-making, recognising its critical role in shaping business success.

As organisations continue to centralise real estate reporting and elevate CRE functions to more strategic roles, the collaboration between executives and real estate leaders will only become more important.

By fostering stronger engagement, aligning real estate with corporate strategy, and leveraging data-driven insights, companies can unlock the full potential of their real estate assets and drive long-term business value.