A municipality launches an in-depth real estate management assessment
In this case study, advisors and a California municipality took a comprehensive look at how they manage real estate.
A municipal government in California with over 1,000 employees that manages a diverse portfolio of real estate assets including buildings, vacant land, utilities infrastructure, and a public space, among others. The municipality lacked an established real estate management program to effectively oversee its facilities and plan for future needs.
The situation
The municipality faced significant challenges due to the absence of a formal real estate management program.
Without a clear understanding of current facility uses, maintenance costs, or asset conditions, the municipality struggled to forecast and strategically plan for its real estate needs. This gap hindered efficient oversight and risked escalating costs or underutilizing properties.
The client engaged a team of advisors to establish employee use definitions, develop baseline matrices to measure current and future key performance indicators (KPIs), evaluate current facilities, and forecast needs and resources over the next 10 years.
The solution & results
The advisors conducted a comprehensive real estate and property management process assessment and review. While working closely with the municipality’s internal audit team, the advisors followed a structured approach encompassing:
- Project initiation and management: Comprehensive planning and project management, including surveys to gather the necessary information, identifying documents to review, and establishing regular reports
- Fieldwork: Included survey completion, document review, and research drawn from insights provided by leadership
- Analysis: Evaluated the importance, impact, and scope of observations within the context given to develop actionable recommendations
- Reporting: Advisors fine-tuned recommendations based on feedback from municipality leadership
The advisors brought deep industry insights to benchmark the municipality’s real estate management program against similarly sized municipalities. The team also provided standardized forms and tools to enable immediate improvements.
Key outcomes included:
- Complete, verified listing of all municipality real estate assets
- An actionable implementation guide to enhance real estate management processes
- Strategic guidance for integrating real estate oversight into the municipality’s broader strategic plan
- Confirmation and documentation of facility uses
- Clearly defined set of policies and procedures necessary for future real estate administration
- KPI definitions to track real estate performance over time
- Recommendations for ongoing reporting to maintain program currency and effectiveness
By establishing a foundational real estate management framework, the municipality gained improved visibility and control over its assets, enabling more informed decision-making and strategic planning.
The actionable recommendations and tools provided a clear road map for sustainable program development. With continued implementation support, the municipality is positioned to help optimize facility use and manage maintenance costs proactively.