In today’s unpredictable business environment—marked by shifting policies, global realignment, hybrid work models and supply chain uncertainty—tech leaders are navigating complex terrain.
While much attention is paid to product, talent and capital strategy, one critical lever remains underutilized: real estate. Real estate can be a powerful driver of agility, innovation and long-term resilience.
This guide offers a self-directed approach to corporate real estate strategy for tech leaders—grounded in real-world examples and actionable insights—to make more informed decisions and transform real estate from a passive cost center into a dynamic, long-term asset that drives sustained growth.
1. Understand What’s at Risk—and What’s Possible
Real estate is typically the second-largest expense for an organization after labor. Underutilized or misaligned assets expose organizations to unnecessary cost and risk. Leaders should seek visibility into where their portfolios are vulnerable—and where they can unlock value.
Key questions to ask:
From Theory to Practice: Reinvest Savings into a Future-Ready Digital Strategy.
As part of its “Future Ready” plan, an international information technology company headquartered in Palo Alto streamlined its global real estate holdings to reduce costs and increase operational agility. In fiscal year 2023, the company cut more than $550 million in real estate and labor-related costs, allowing for greater flexibility and reinvestment in digital operations.1
2. Build a Scenario Planning Framework
Tariffs, regulatory shifts, geopolitical disruptions and environmental policy changes are no longer rare events—they’re persistent business conditions. As such, effective scenario planning has become more critical than ever. By modeling how their portfolios perform across multiple potential futures, tech leaders can enhance their ability to respond to market shifts and weather economic headwinds.
Key inputs to scenario planning:
From Theory to Practice: Turn Tariffs into Supply Chain Innovation
Recent tariff announcements have prompted many tech companies to reassess their production strategies, with a renewed emphasis on building resilient, domestic supply chains for hardware, servers, and related infrastructure.
3. Rethink Space Allocation Around Talent, Not Tradition
The rise of distributed workforces has redefined how organizations think about office space. Rather than defaulting to headquarters and tier-one markets, strategic companies are aligning their footprints with:
From Theory to Practice: Go Digital to Drive Agility
In 2020, a leading e-commerce platform declared itself “digital by default,” shifting most employees to permanent remote work and turning offices into “recruitment hubs.” 2 This move illustrates how companies can rethink space needs by aligning with distributed talent and innovation ecosystems.
4. Accelerate Decision-Making with Real-Time Intelligence
Historically, real estate decisions have relied on 12 to 18-month planning cycles and outdated reports. Today’s environment requires integrated, real-time dashboards that connect leasing, utilization, workforce trends and cost data to effectively navigate swiftly evolving conditions.
What to build:
From Theory to Practice: Leveraging Digital Twins for Real-Time, Data-Driven Decisions
A global leader in accelerated computing and AI infrastructure’s use of digital twins shows how real-time intelligence accelerates decision-making. By simulating robot fleets and warehouse operations, this company can monitor operations, test scenarios, and optimize processes before applying them in the physical world. 3 This mirrors the type of real-time dashboards needed for real estate, integrating utilization, cost and operational data to guide faster, more informed decisions.
5. Move from Portfolio Management to Strategic Enablement
The most innovative tech companies manage real estate as a strategic asset with intentional design, measurable ROI and adaptability. High-performing firms are increasingly embracing flexible, tiered models that evolve with business needs.
What strategic enablement looks like:
From Theory to Practice: Build Smarter Offices for a Hybrid Future
Over the past several years, a major global software company has transformed its office environments to better support hybrid work. Key initiatives include upgrading conference room technology for seamless collaboration, introducing an efficient guest management system and leveraging the company’s employee app to elevate the overall workplace experience.4
Conclusion: Lead Real Estate Strategy Like a Tech Product
Disruption is the status quo. Real estate strategy must evolve accordingly. A modern strategy should:
Every square foot should serve a purpose. If space doesn’t enable innovation, attract talent, or accelerate execution, it may be time to reevaluate. The workplace portfolio is a platform—not a constraint—for future growth.
References
President of Leasing for North America
Executive Vice President, Workplace Strategy & Human Experience
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