Cargill RFP Response

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INDUSTRY TRENDS

Internal vs. Outsourced Services Companies must decide whether to manage their real estate functions in-house or to outsource them to external service providers. In-house management offers greater control and customization, while outsourcing can provide access to specialized expertise and cost efficiencies. Typically, outsourcing is implemented due to a large change in the company direction/leadership, or the real estate portfolio is drastically changing. Performance Measurement and Benchmarking Establishing key performance indicators (KPIs) and benchmarking against industry standards help companies evaluate the effectiveness of their real estate management and identify areas for improvement. Technology and Data Management Effective corporate real estate management requires robust data collection, analysis, and reporting tools to support decision-making and performance tracking. Integrating real estate data with other enterprise systems, such as financial management or human resources, can enable more informed and strategic decision-making. Talent and Skill Development A successful corporate real estate organization requires a diverse mix of skills and expertise, such as strategic planning, financial analysis, lease negotiation, project management, and facilities management. Companies need to invest in training and development programs to ensure their employees possess the necessary competencies.

In the following pages we would like to share some industry trends and best practices as it relates to CRE Operating Models. These considerations will be weaved throughout our Discovery & Analysis process as we design the attributes that drive success for Cargill. MISSION & GOALS OF A CRE ORGANIZATION An important early step in determining any new CRE organizational model is to define its core mission and strategic goals. Here are some considerations that typically come into play: Centralization vs. Decentralization Companies must determine the appropriate level of centralization or decentralization for their real estate functions. A centralized approach consolidates decision-making and resource allocation within a single department or team, providing consistency and control. In contrast, a decentralized approach distributes these responsibilities across various departments or regional offices, promoting flexibility and local adaptation. Typically, corporate real estate organizations that manage a larger portfolio are more centralized. Governance and Reporting Structure The governance and reporting structure defines the roles, responsibilities, and relationships among different stakeholders involved in corporate real estate management. This may include the board of directors, C-suite executives, real estate managers, facilities managers, and other functional departments such as finance, human resources, and IT.

Proposal for Real Estate & Incentives Advisory Services CARGILL 29