A regional bank with a $87 million annual spend for occupancy desired to achieve cost savings
Cost reduction was pursued for nonbranch leases, nonbranch services, and branch services
Facilities were operated under an umbrella contract with a national real estate firm.
Results
Cost savings of up to $9 million annually were identified through
Space utilization improvement, including consolidation of locations
Contractual savings in the facilities agreement, including variablizing labor costs
Developing and applying standards for acquisition and construction of new office space
Creating a real estate policy that aligned services provided with strategic goals of the bank, thereby creating a framework to measure performance against savings goals
