White Paper: MBE Commercial Real Estate

White Paper: MBE Commercial Real Estate

MBE Certified Commercial Real Estate Service Providers: How They Can Benefit Your Company

“Business as usual” is expensive. When CFOs examine operating statements, the largest expenses are typically labor, healthcare and then real estate. Most often, company executives engage in the oversight of buying, selling and leasing of their companies corporate real estate, along with the management of facility operations and maintenance. If done incorrectly, these seemingly simple tasks can amount to costly mistakes that can adversely affect a business’s bottom-line. Thankfully, these errors can be avoided by hiring the right real estate partner. So how can companies benefit two-fold from the high cost of real estate expenses? The short answer is by hiring a MBE certified commercial real estate service provider.

Why a MBE certified commercial real estate service provider is a company’s best friend.

Tier II Spend:

Large companies, such as Procter and Gamble, Toyota and Kaiser Permanente, have a strong desire to work with MBE certified firms. In fact, most of these companies have their suppliers adhere to certain MBE spend goals through either verbal or contractual obligations. Toyota’s processes provide a good example of this innovative way of thinking. Toyota treats its supplier diversity initiative strategically, and works with their suppliers to meet a certain percentage of minority expenditures. With these directives in place, Tier I suppliers, are now in search of minority-certified firms, but often times have trouble meeting their “diverse spend goals” due to the lack of internal staff focused on sourcing quality MBEs.

Governmental mandates:

Governmental mandates on non-profits and government agencies also dictate how much money those entities must spend with minority-owned and small businesses. Pressure from these mandates is creating a demand for qualified MBE certified firms. However, most MBE spend segments are oversaturated with similar industry providers and offer either relatively low-cost products or services in comparison to real estate services.

The functions of a commercial real estate service provider:

Holistic commercial real estate service providers specialize in a wide range of services and responsibilities. Aside from tenant leasing and buyer/seller representation, an industry leading commercial real estate service provider will be able to effectively maximize the value of a company’s assets through a company’s physical space. Alongside transactional negotiations, your real estate partner should create efficiencies and lower your overall costs associated with facility management. Secondly, an effective commercial real estate firm allows executives the ability to focus on what matters most: growing their company.

The MBE certified benefit:

Because an increasing number of companies are actively searching for new ways to spend large amounts of capital with MBEs, there is an increasing demand for MBE spend to be structured in a holistic way. As opposed to using multiple small MBE expenditures, why not use one large one? Since real estate is often one of the largest company expenses, it only makes sense for companies to utilize a MBE certified real estate service provider that can convert these costs into a tremendous amount of MBE spend. For example, Robert Louis Group (RLG), headquartered in Cincinnati, Ohio, is one of very few MBE certified, full-service commercial real estate service providers. By selecting a company like RLG that is capable of handling all real estate needs from tenant representation, to acquiring and disposing of real estate assets to property/facility management; businesses are able to simultaneously increase their bottom line while meeting their MBE spend goals.

MBE spend can help all sized companies, even small ones:

The top-down encouragement of suppliers to work with minority businesses has made it necessary for suppliers to find qualified MBE firms. How can this be done in the most efficient way? Think about it like this; almost every company in business today either leases or owns real estate in order to operate their business. Even smaller companies who have real estate needs can tackle a significant percentage of their total spending targets. So the use of a MBE certified commercial real estate firm like Robert Louis Group can be an incredible aid too companies looking to meet their MBE spend goals.

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