Real Estate, Risk and Opportunities for Board’s Strategic Planning

When Boards assess where their organisation is today and where it wants to be tomorrow, real estate should form a critical part of the conversation. In many organisations where property is not the core business, corporate real estate is often viewed as an operational line item - a fixed cost managed by facilities teams and measured primarily through occupancy costs, square metre efficiencies, or desk utilisation rates.

This perspective significantly undervalues the strategic role that real estate can play. Property decisions influence financial performance, organisational agility, talent attraction, sustainability outcomes, operational resilience, and ultimately long-term enterprise value. From a governance, culture, financial, and risk management perspective, Boards have a responsibility to ensure that all assumptions, plans, and commitments relating to real estate are rigorously tested for both risks and opportunities.

The most effective Boards continuously review the organisation's vision and strategy through the lens of real estate. The question is not simply whether the business occupies space efficiently, but whether its property portfolio actively supports future performance, growth, innovation, and resilience.

Start with a Comprehensive Portfolio Health Check

Every strategic review should begin with a thorough assessment of the current property portfolio data and assumptions. Before determining what real estate will be required in the future, Boards must have confidence that they fully understand the assets, liabilities, obligations, and opportunities that exist today and they are not missing any information pitfalls.

A forensic review of the portfolio often reveals gaps, outdated assumptions, and hidden risks. Common issues include valuations that are sensitive to certain special assumptions or basis of valuations. Figures can rely on historic assumptions or may not comply with current international standards, and information should be robustly challenged. Incomplete records of lease obligations and occupational costs, outdated building information, deferred maintenance requirements, or capital expenditure liabilities that have not been fully quantified are common risks.

Boards should ensure there is regular rotation of independent valuers and advisers to provide fresh perspectives and challenge long-standing assumptions. Over time, organisations can focus on the changes in the assessment metrics and may not question the basis these metrics are extracted from. It is important to ensure that building surveys, environmental reports, compliance reviews, and capital expenditure forecasts remain current. In rapidly changing markets, information that was accurate two years ago may no longer provide a reliable basis for strategic decision-making.

A robust review of the existing portfolio creates the foundation for better strategic decisions and reduces the likelihood of surprises and missed opportunities emerging at a later stage.

Looking Beyond Current Requirements

Once the current portfolio has been assessed, Boards should challenge whether existing real estate holdings align with the organisation's future direction.

While predicting the future has rarely been more difficult, organisations must still make informed judgments about the direction of travel. Business models are evolving, workforce expectations are changing, technological innovation continues to accelerate, and geopolitical uncertainty remains a persistent feature of the operating environment.

Against this backdrop, property strategies must become increasingly dynamic. Boards should ask whether existing assets support future business objectives, whether certain locations remain strategically relevant, and whether the portfolio provides sufficient flexibility to adapt to changing circumstances and evolving markets for growth.

Importantly, Boards should not only understand what assets are worth to the organisation itself but also what they may be worth to alternative users. Significant value creation opportunities can emerge when organisations examine their holdings from an external market perspective.

Development potential is frequently overlooked. Engaging planning consultants and property specialists can help identify opportunities for redevelopment, repositioning, change of use, or intensification that may materially enhance value. In many cases, the underlying land value may exceed the value being generated by the current operational use.

Property cycles can also create strategic opportunities. Depending on an organisation's risk appetite and capital position, periods of market weakness can provide opportunities to acquire quality assets below replacement cost. Similarly, organisations may benefit from disposing of mature assets, restructuring ownership models, or pursuing sale-and-leaseback transactions to release capital for investment elsewhere in the business.

Boards that view property solely as an operational necessity often miss these opportunities. Those that view real estate as a strategic asset are better positioned to create value over the long term.

Navigating an Era of Constant Change

The last five years have fundamentally reshaped traditional assumptions about real estate. The pandemic, geopolitical instability, inflationary pressures, rising borrowing costs, changing workforce expectations, and rapid advances in technology have transformed how organisations think about space. Many long-established real estate strategies have been rendered obsolete.

The challenge for Boards is that property remains inherently illiquid. Unlike many other corporate resources, real estate commitments are often long term, capital intensive, and difficult to unwind quickly. This makes environmental scanning and scenario planning essential.

Organisations that identify shifts early can adapt proactively. Those that fail to do so often find themselves reacting after circumstances have already changed. Real estate should therefore be viewed not as a static asset class but as a dynamic driver of both strategic risk and organisational performance. The organisations that thrive are increasingly those that build flexibility into their portfolios, maintain optionality, and avoid becoming constrained by property decisions that no longer reflect business realities.

Real Estate, Talent and Organisational Performance

One of the most significant shifts in recent years has been the changing relationship between people and workplaces. As hybrid and flexible working arrangements become more established, organisations must think differently about the role of their physical spaces. The office is no longer simply a location where work is undertaken. The fitout and technology used by an organisation in their real estate should reflect the culture and values of an organisation. 

Successful workplaces are increasingly designed around collaboration, innovation, wellbeing, and employee experience. Amenities, technology integration, sustainability credentials, accessibility, and workplace culture all play a role in determining whether employees view the office as an attractive destination rather than an obligation. Boards should ensure that workplace strategies are closely aligned with talent objectives. Real estate decisions should support recruitment, retention, productivity, engagement, and organisational culture.

This is particularly important as new generations enter the workforce with different expectations regarding flexibility, sustainability, and workplace experience. Organisations that fail to adapt may find themselves at a competitive disadvantage and in many cities, housing affordability and availability have become significant barriers to recruitment and retention. For organisations competing for skilled talent, particularly in sectors facing labour shortages, access to accommodation is increasingly emerging as a strategic workforce issue rather than simply a social challenge.

Forward-thinking organisations are beginning to explore how their real estate strategies can support employees through staff accommodation, rental assistance programmes, partnerships with housing providers, or the development of employer-supported housing solutions. While such approaches have historically been associated with remote locations or specialist industries, rising housing pressures are bringing the concept into the mainstream.

For Boards, the question is whether residential accommodation could provide a competitive advantage in attracting and retaining key talent. In certain markets, access to secure and affordable housing may be valued as highly as traditional employee benefits. Organisations that can remove a major obstacle to employment may gain a meaningful advantage over competitors seeking to recruit from the same talent pool.

Boards should therefore consider whether residential property could form part of a broader workforce strategy. While such investments require careful evaluation of financial returns, governance arrangements, and operational responsibilities, they may deliver significant long-term benefits through improved recruitment battle for talent.

Sustainability and Climate Resilience

Environmental performance has moved from being a desirable attribute to a strategic necessity. Occupiers, investors, regulators, employees, and customers increasingly expect organisations to demonstrate meaningful progress against climate commitments and sustainability goals. Many property portfolios face significant exposure to tightening energy performance regulations, carbon reduction targets, and sustainability reporting requirements. Buildings that fail to meet future standards may require substantial capital investment, experience reduced market demand, or suffer value impairment.

Boards should have a clear understanding of their exposure and ensure that upgrade requirements are reflected within long-term capital planning. However, sustainability should not be viewed solely as a compliance challenge. Well-performing buildings often deliver lower operating costs, stronger employee satisfaction, enhanced brand reputation, and greater long-term resilience. Real estate can therefore play a central role in achieving both environmental and commercial objectives.

Future Performance and Strategic Advantage

Real estate typically represents one of the largest assets - and often one of the largest liabilities - on an organisation's balance sheet. In a higher interest rate environment, inefficient property holdings can tie up significant capital and reduce organisational agility. Yet property can also be a source of competitive advantage.

The organisations that navigate disruption most successfully are often those whose Boards recognise that property decisions are ultimately strategic and human decisions, not merely financial transactions. They understand that real estate influences culture, performance, sustainability, resilience, and growth.

By undertaking rigorous portfolio reviews, identifying hidden value opportunities, building flexibility into property commitments, aligning workplaces with talent strategies, and integrating sustainability into long-term planning, Boards can transform real estate from a traditional corporate overhead into a powerful strategic asset.

The future will continue to bring uncertainty. Organisations cannot predict every disruption, but they can position themselves to respond more effectively. Boards that create the space to think strategically about real estate - and view it as an enabler of transformation rather than simply a cost of doing business - will be better equipped to build resilient, adaptable, and high-performing organisations for the years ahead.

This article is the view of the author(s) and does not necessarily reflect IoD Ireland’s policy or position.

About the Author

Michele Jackson CDir is a Chartered Surveyor with over 30 years’ experience in the commercial real estate market in Ireland and the UK. Michele is a former owner and current Director with TWM, a property advisory business and now part of the ORS group who are a multi-disciplinary real estate business. Prior to TWM, she was a Director and head of the Investment Team in Cushman & Wakefield (formerly DTZ Sherry FitzGerald). She started her career with Knight Frank in London and has extensive experience over the last two decades in commercial agency with a focus on Investments. Range of deals Michele has executed include; Sale of Royal Hibernian Way, Dublin 2, Carlow Retail Park and Kilkenny Retail Park for Aviva. Sale of Allianz Building Elm Park for abrdn, Acquisition of Amazon Northwest Logistics Park and Block B Liffey Valley for State Street, Sale of Forestry Portfolio for the Church Commissioners of England, Acquisition of 2/3/5 & 6 Custom House Plaza, IFSC on behalf of the Killeens/abrdn and State Street. Michele holds a Diploma in Company Direction from the Institute of Directors Ireland, a BSc (Hons) in Estate Management. Michele is a Fellow Member of the Society of Chartered Surveyors Ireland and a Fellow of the Royal Institution of Chartered Surveyors.

Questions Board Directors Should Ask About Real Estate Strategy