Traditionally, real estate has been viewed by many businesses as a cost item—often a substantial one—but its role is evolving. Today, C-suite leaders are starting to see real estate not only as a cost but as a strategic asset that can contribute to a range of business objectives. These include fostering company culture, enhancing productivity, supporting talent goals, and housing essential infrastructure.
Historically, businesses focused on their core operations—making and selling goods and services—while real estate management was often relegated to a secondary priority. However, as the business landscape evolves, the potential of real estate as a business enabler is gaining recognition. It is becoming clear that real estate decisions can directly impact business outcomes, influencing everything from employee satisfaction to organizational flexibility.
According to the C-Suite Perspectives: Empowering Business Through Real Estate survey, which polled over 250 leaders from diverse sectors, including manufacturing, financial services, healthcare, and technology, the majority (94%) of respondents believe real estate is crucial to achieving their business goals. Furthermore, half of them expect real estate to grow in importance over the next three years.
Despite this recognition, some leaders are less optimistic about their current portfolios. While 72% view their real estate holdings as positive contributors, 28% believe their properties have a neutral or negative impact. This divide underscores the need for businesses to reframe how they approach their real estate strategies to fully harness its potential.
As businesses work to enhance their resilience, many are rethinking how real estate can better serve their needs. Leaders are focusing on flexibility, cost management, rightsizing, and improving supply chain resilience. Achieving these goals will require better data and insights to drive decision-making.
C-suite leaders are increasingly becoming more involved in real estate decisions. Most organizations (97%) now have a central real estate function with a direct reporting line to the C-suite. Of those, 60% have had direct reporting lines established since the COVID-19 pandemic, reflecting the growing alignment between real estate and broader business changes.
Despite this shift, the survey revealed that only 50% of C-suite leaders feel that their engagement with real estate is fully effective. Moreover, three-quarters of respondents want to have more influence or involvement in real estate decisions, signaling a need for further improvements in real estate-C-suite collaboration.
As the role of real estate in business strategy continues to evolve, the companies that take proactive steps to leverage its potential will likely be the ones that gain the most value. The increasing focus on real estate’s strategic contribution, especially following the pandemic, presents a unique opportunity for leaders to reframe its role within the organization and drive long-term success.
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