ABSTRACT
This chapter focuses on predominantly on occupiers as tenants and the process of finding a 'good' landlord. It considers the financial implications of the procurement decision, including an examination of sale-and-leaseback transactions and a brief introduction to the impact of the continual consultations on the financial reporting of leases undertaken by the International Accounting Standards Board. The chapter explores the range of procurement options beyond the simple freehold v. leasehold decision and discusses their relative advantages and disadvantages. It examines the lack of customer focus in traditional real estate management as evidenced by the disappointing occupier satisfaction above, and discusses the drivers for a change of approach, and explains the contrasts between the traditional and customer-focused approaches. The decisions involved in deciding the route to corporate real estate (CRE) procurement have become more complex, given the changing business environment, the increased pace of change and some fundamental shifts in legal and accounting reporting requirements.
