Strategic Planning Study
Munich, Germany
2,000,000 square feet


Real Estate Action Planning
International Program Management
Capital and Expense Budgeting


The portfolio in one of Digital Equipment Corporation's largest European subsidiaries was expanding rapidly. That growth created major operational inefficiencies and a large projected space shortfall. A strategic plan integrating the long-term business outlook with the real estate portfolio was called for.


This assignment involved the development of a 5-year space forecast, a 2-year plan of specific real estate actions, and a capital and expense budget.

Working with the country management team, the business intent was established from plans contributed by each business function and the 5-year strategic headcount forecast was prepared. The plans were then translated into future space requirements and location criteria.

Collaborating with the country real estate staff, the existing portfolio was evaluated and analyzed, considering current utilization, potential capacity, the operating cost profile and lease conditions. Subsequently, an analysis of market conditions and an assessment of potential new properties were completed. This data was integrated and several long range real estate scenarios were modeled.

The result was a recommended series of actions to retain, acquire, and dispose of properties to transform the portfolio and satisfy future business needs.


The action plans were approved by the executive management team, a new campus location was acquired, and short term space was leased. Inefficient properties were subsequently disposed of and the space shortfall was alleviated.