IntelligentCRE : Centralization

{ Category Archives } Centralization

The Logical Reason to Centralize Corporate Real Estate

Berkshire Hathaway is an effective company. Its businesses dominate their industries, have great managers, excellent economics and durable advantages over the competition. Berkshire is a decentralized holding company of phenomenal businesses, amassed by the worlds’ greatest “asset allocator” and my role model, Warren Buffett.
Decentralization at Berkshire is strategic and necessary. “These (managers) […]

An Uncoordinated Effort: Two Units Compete for the Same Asset

Over a cup of coffee and a warm meal, a CRE manager recently told the poignant tale of how his former employer, a massive multinational in the paper and publishing industry, reasoned that centralization of the real estate function would be a good thing.

The company was expanding into emerging markets at a brisk pace. […]