Guest Post by Manfred Fink, Senior Manager Portfolio Management Real Estate, ZF Friedrichshafen AG

As industrial corporations navigate the dynamic real estate landscape, identifying and revitalizing nonproductive properties becomes crucial. Whether you’re in the US or Europe, consider the following steps to maximize the value of underutilized real estate:

1. Thoroughly Identify Nonproductive Properties:
• Dig deep into your data to pinpoint areas that are not performing optimally. Or not at all. Engage with responsible operations and footprint teams to understand the reasons behind their underutilization.
• Remember, this process requires patience and coordination. Trustworthy conversations about business implications and intended strategic adjustments are essential.
2. Activate Dormant Values:
• Recognize that unlocking value takes time. Avoid quick fix promises from inexperienced sources.
• Instead, focus on long-term gains. By activating dormant values, you can bolster your core business.
3. Strategize for Value Enhancement:
• Once identified, consider how to uplift the real estate’s value. Evaluate its best use and potential fit for new users.
• Pre-check environmental, legal, and technical aspects. Define the right steps in the right sequence to maximize income.
• Ensure transparency during the due diligence process to avoid surprises for potential buyers.
4. Preparation and Attractiveness:
• Prepare the property for marketing. This may involve some upfront costs, such as separating surplus land or performing cleanup activities.
• Consider pre-development efforts to make the property more appealing. Adjust properties where needed.

Remember, optimizing nonproductive real estate is an investment in your organization’s future. Take the time to strategize and unlock dormant capital.