jump to navigation

How Your Life Will Change … due to New Lease Accounting June 28, 2010

Posted by Bob Cook in Financial Planning & Analysis, Lease Accounting, Profession of Corporate Real Estate.
add a comment

I know.  Most people think anything having to do with accounting is just for accountants.   Just for the eye-shade crowd.  Not true.

The new lease accounting standards being developed jointly by the IASB and FASB will have considerable impact on how corporate real estate is done.  And will have considerable impact on the individuals doing it.   “How so?” is the subject of the third webinar I’ll be presenting in the three-part webinar series sponsored by Tririga.

If you think this new accounting is only going to affect accountants, better tune into the webinar.  You can here it live tomorrow, Tuesday June 29th at 1 pm EST.  Thereafter, it’ll be available on Tririga’s website.  You can register for it here at Tririga.com.

The Convergence in Corporate Real Estate June 24, 2010

Posted by Bob Cook in Financial Planning & Analysis, Lease Accounting, Profession of Corporate Real Estate.
add a comment

This is a repost of an article by Larry Simpson of CRE3 Forum.   His thoughts on the new lease accounting parallel my own and are worth reading.

http://cre3.wordpress.com/2010/06/23/the-convergence-in-corporate-real-estate/

New York Times covers the new lease accounting June 23, 2010

Posted by Bob Cook in Financial Planning & Analysis, Lease Accounting, Profession of Corporate Real Estate.
add a comment

Today’s New York Times had a story on the new lease accounting.  First time, that I know of, that the new standards have been covered in the popular press.  Check out “New Accounting Rules Ruffle the Leasing Market”.

Also, make sure you check out the webinars I’ve been holding on the implications of the  new accounting for corporate real estate.  You can register for them and listen to them on Tririga’s website.

TRIRIGA Insights | 7 Steps to Prepare for the New Lease Accounting Standards June 23, 2010

Posted by Bob Cook in Financial Planning & Analysis, Lease Accounting, Profession of Corporate Real Estate.
add a comment

John Clark at Tririga has been kind enough to post a summary of some of the content from my webinars on the new lease accounting.   You can see it here: 

 TRIRIGA Insights | 7 Steps to Prepare for the New Lease Accounting Standards.

TRIRIGA Webinar | The New Lease Accounting Standards and You — Strategic and Practical Implications June 20, 2010

Posted by Bob Cook in Financial Planning & Analysis, Lease Accounting, Profession of Corporate Real Estate.
Tags: , , ,
add a comment

I’ll be conducting the second of three webinars on the New Lease Accounting on June 22nd   The focus of this second webinar is on Strategic and Practical Implications. 

Details here:   TRIRIGA Webinar | The New Lease Accounting Standards and You.

Webinar Series: “The New Lease Accounting Standards and You” June 8, 2010

Posted by Bob Cook in Financial Planning & Analysis, Lease Accounting, Profession of Corporate Real Estate.
Tags: , , ,
add a comment

I’ll be holding a series of three webinars sponsored by Tririga.  The emphasis will be on how the new lease accounting standards are going to change the strategies, processes and professions of corporate real estate.

June 15, 1 to 2 pm EDT        The What, Why and Wherefore

June 22, 1 to 2 pm EDT        Strategic and Practical Implications

June 29 , 1 to 2 pm EDT       How It Will Change Your Life

Click here for more details and registration.

Mercury News’ columnist got it wrong. Headline should be: HP Grows Up ( … with corporate real estate playing role) June 2, 2010

Posted by Bob Cook in Company Case Studies, Financial Planning & Analysis, Profession of Corporate Real Estate, Silicon Valley.
Tags: , , , ,
add a comment

Today, Columnist Chris O’Brien lambasts HP for finding success – not from innovating like Apple or Google – but from implementing a “ruthless, brutally effective strategy” that he playfully characterizes as “Buy a company. Cut costs. Trim employees. Repeat.” His column was prompted by HP’s latest layoff announcement.

HP should, however, in fact, be lauded for maturing into a well-run enterprise that can successfully compete in a complex world where success – especially for a large company – requires more than just coming up with the latest and greatest. It requires business acumen, discipline, and management – something that has been missing from the many great product-focused, geekdom companies that are now R.I.P. in the Silicon Valley graveyard. Think (and weep, ’cause it was great in many ways): Sun Microsystems.

HP is showing an alternative way for a tech company to succeed – and to do it long term. It’s a way to build an enduring enterprise – a way away from the self-limiting strategy pursued by most tech companies and which I’ll playfully characterize as: “Design breakthrough product. Develop cult following. Sell before competitor catches up. Repeat first three steps as many times a possible, then (inevitably)…. Blink. Hiccup. Crash.”

HP has become a corporate juggenaut by realizing, under the five-year leadership of CEO Mark Hurd, that success requires the careful management of resources: capital, people, assets, infrastructure. The last of these is partially the domain the HP real estate group which is clearly busy with initiatives like the consolidation of HP’s data centers and which is proving its worth to the enterprise.

According to HP’s latest 10-K, of 77 million square feet of space, fully 10 million square feet had been vacated – probably significantly helping on-going P&L, albeit with some large one-time negative hits for write-offs and reserves. While only three million square feet had been sublet such that this vacated space continues to drain cash, once those unneeded leases burn off, the cash flow savings will become as permanent as are the P&L savings already in place. Having said that, subletting three million square feet is no small feat. (Pun intended.) Moreover, let me tell you, vacating 10 million square feet is an even bigger feat. (Yep, pun intended, again.) You might think, “what’s so hard about moving out of real estate”, but it must have involved thousands of decisions, hundreds of presentations, and dozens of approvals to decide which sites to vacate, when to do it, how to do it, who should should pay for it and who should profit from it.

As companies like HP become mature enterprises – managed by professional managers who leave product design and marketing to others and see their job as managing the enterprise – corporate real estate departments become more important. To manage an enterprise is to manage the company’s infrastructure – both hard (e.g. real estate, IT systems) and soft (e.g. culture) – and corporate real estate plays a central role in this area. Products come and go. People come and go. Infrastructure endures.