New guidelines elevate the importance for facility managers to be able to explain the use and value of an organization’s spaces to company financial leaders. People and places have always been an organization’s greatest assets. But, those assets are being underutilized.
BIG REPORTING CHANGES
Steelcase research reports only 54 percent of real estate is used. Now, new Financial Accounting Standards Board guidelines starting in 2019 require organizations that lease property for more than 12 months to recognize those leases as assets or liabilities. This big change to balance sheets makes it more important than ever for leaders to understand how and if spaces are being used.
CoreNet Global’s the LEADER recently suggested corporate real estate will need to collaborate with information technology and accounting in order to reexamine lease accounting and reporting. Forward-thinking organizations are looking for data-driven solutions to help accurately determine facility use and drive better reporting and decision-making around real estate utilization.