atg (Art Technology Group)

Client Situation

Global Portfolio Management and Strategic Planning

The enterprise software solutions company, Art Technology Group [atg], had transformed itself over 20 years from a rapid growth firm to a mature public company with a global presence in 16 offices throughout the United States and Europe. During an earlier period of rapid expansion the firm had overcommitted to substantial long-term real estate obligations. Going forward, the CFO wanted a plan in place so that real estate decisions and corresponding lease commitments were more closely aligned to the organization’s long-term business plan, and hired Columbia Group as its global real estate advisor to address all its real estate planning and site selection needs.

Action Taken

As the global real estate advisor on the portfolio, Columbia Group developed an understanding of the company’s unique culture, as well as the individual styles of the real estate management team. This knowledge, developed over time, empowered Columbia Group to interpret the needs and effectively represent the company’s interests to brokers in the various local market places. Columbia Group tailored a specific approach for each site, and - as the sole point of contact between the company and the local real estate environment - brought continuity to the outcomes for atg. To provide timely information for forecasting and budgeting purposes, as well as to manage critical dates, key metrics, and track expenses, Columbia Group designed and implemented a Web-based lease administration database. By offering benchmarking data on issues of capacity utilization, occupancy costs per employee, cash flow projections, and by providing timely reminders on expiration, renewal or other option dates, the system became a reliable "go to" resource and a powerful decision-making tool.

Outcome

The institutional memory afforded by an exclusive long-term advisory relationship gave atg’s in-house real estate team the ability to execute and deliver on a real estate strategy that was integrated into the planning process, as well as to reinforce a consistent corporate culture across sites.