Oracle Real Estate

Management
Why is Real Estate Management
Important?

“The workplace represents

a large portion of an
enterprise's overhead cost,
second only to labor costs.”

-Gartner, Drive Value Through

Workplace Change, Michael Bell,
16-January-2003
 The Real Estate Market

Oracle Real Estate Management

Who do we define as the Real Estate
Market?

Entities that lease, own,or

manage buildings or facilities that
they lease, own, or manage

EVERYBODY has real estate

Real Estate Market by Segments
 Tenants
– May sublease acting as
landlord
– Segmented by industry
 Building Owners
– Buy and sell properties
– Segmented by industry
– May outsource
management of
properties
 Developers
– Construct from ground
up
– May manage or
outsource
 Property Management
Companies
– Don’t own or lease
anything
– Provide real estate
management as a
service
– May act on behalf of
Building Owners,
Tenants, or both
 Brokers
– Facilitate real estate
transactions between
buyers and sellers
Real Estate Market by Industry
• General business
Other • Manufacturers
• Professional Services C
O
• Retail store R
Retail/Franchise • Quick service/Fast Food P
• Banks/Insurance O
• Investment Real Estate R
Commercial • Banks/Insurance A
Real Estate • Developers T
E
• Hospitals
Healthcare • Healthcare Services R
• HMOs E
• Wireless Carriers A
Comms/ • Wireline Carriers L
Utilities • Power/Water/Gas
E
• Army Housing S
Government • Property Administration T
• Military Stores A
T
• Campus Management
E
Higher Education • Dormitories
• Investment Real Estate
Market Trends

 Entities that manage real estate are finally

starting to embrace technology

 Consolidation of software providers is causing

concern

 Many of the incumbent solutions built on old

technology and don’t have the capital to stay
current

 Current economics forcing them to manage their

real estate holdings and commitments better
Markets for Oracle Property Manager

 Corporate Real Estate

– Large, multi-national
– Telecommunications
 Commercial Real Estate
– REIT’s
– Developer/Owners
 Retail Real Estate
– Fast Food/Chain Restaurants
– Banks/Insurance Companies
Corporate Real Estate

 Existing EBS Customers

– Most of the setup already done
– Fold real estate transactions into existing business
process
 Space Management
– Understanding current utilization of space to drive
economic utilization of space
 Landlord Functionality
– Supports subleasing of under utilized space
 Integration with Enterprise Asset Management
– Natural extension of managing space
– Integration to Supply Chain
The Oracle Real Estate Management
Solution Footprint

Oracle Real Estate Management

 Major Functions of Real Estate

Sales and Lease

Construction Marketing/ Administration Facilities
Management Deal and Space Management
Management Management

Procurement
 Oracle Real Estate Management
Sales and Lease
Construction Facilities
Marketing/ Deal Administration and
Management Management
Management Space Management
Oracle Property
Oracle Projects Oracle Sales/ Manager/ Oracle Enterprise
Oracle Marketing Oracle Financials Asset Management

• Site Selection • Contact • Lease Execution • Facilities

• Construction Management • Milestones Requests
• Leasehold • Deal Tracking • Rent Calculation • Maintenance
Improvement • Collaborative • Transaction Requests
• Build Out Negotiation Processing • Predictive
• Rebilling • Collateral • Space Maintenance
• Demolition Management Administration • Compliance

Procurement
Oracle Real Estate Management
 Financials
– Oracle Financials
– Oracle iReceivables
– Oracle Advanced
Collections
– Oracle Financial and Sales
Analyzer
– Oracle Internet Expenses
 Maintenance Management
– Oracle Enterprise Asset
Management
 Projects
– Oracle Projects
– Oracle Project Billing
– Oracle Project Collaboration
 Manufacturing
– Oracle Discrete Manufacturing
 Procurement
– Oracle Purchasing
– Oracle iProcurement
– Oracle Sourcing
– Oracle iSupplier Portal
 Sales
– Oracle Sales Online
 Marketing
– Oracle Marketing
 Service
– Oracle iSupport
– Oracle TeleService
– Oracle Field Service
Solutions by Perspective - Landlord
 Financials  Manufacturing
– Oracle Financials – Oracle Discrete Manufacturing
– Oracle iReceivables  Procurement
– Oracle Advanced – Oracle Purchasing
Collections – Oracle iProcurement
– Oracle Financial and Sales – Oracle Sourcing
Analyzer
– Oracle iSupplier Portal
– Oracle Internet Expenses
 Sales
 Maintenance Management
– Oracle Sales Online
– Oracle Enterprise Asset
Management  Marketing
 Projects – Oracle Marketing
– Oracle Projects  Service
– Oracle Project Billing – Oracle iSupport

– Oracle Project Collaboration – Oracle TeleService

– Oracle Field Service
Solutions by Perspective – Tenant
 Financials  Manufacturing
– Oracle Financials – Oracle Discrete Manufacturing
– Oracle iReceivables  Procurement
– Oracle Advanced – Oracle Purchasing
Collections – Oracle iProcurement
– Oracle Financial and Sales – Oracle Sourcing
Analyzer
– Oracle iSupplier Portal
– Oracle Internet Expenses
 Sales
 Maintenance Management
– Oracle Sales Online
– Oracle Enterprise Asset
Management  Marketing
 Projects – Oracle Marketing
– Oracle Projects  Service
– Oracle Project Billing – Oracle iSupport

– Oracle Project Collaboration – Oracle TeleService

– Oracle Field Service
Streamline Real Estate Management

Site Selection • Identify site candidates for lease or purchase

& Acquisition
• Review and approve acquisition

Construction • Track costs & progress of construction projects

Management
• Schedule resources (labor, materials, equipment)

Operations and • Service facilities and assets

Facilities
Management • Meet financial obligations (e.g., lease payments)

Site / Asset • Track individual and aggregate site profitability

Disposal
• Determine whether to keep or close site
Site Selection and Acquisition
 Site Selection
– Planning next store opening
or office opening or
relocation
– Intensive data analysis
 Acquisition
– Opportunity management
from a Landlord
perspective
– Project management from a
Tenant perspective
Oracle Products
Oracle Sales and
Financial Analyzer
Oracle Discoverer
Oracle Daily Business
Intelligence
Oracle Sales Online
Oracle Marketing
Oracle Projects
Oracle Project Collaboration
Oracle Financials
Oracle Internet Expenses
 Deal Management
Expedite Time to Lease with Collaborative Negotiation

Create Collateral Manage Opportunities Virtual Collaboration

• Property brochures • Track progress of deal • Share documents and drawings
• Websites • Share among team members • Version track living documents

Build Track Collect

Market Negotiate Execute
Collateral Opportunities Cost

Market Property Opportunity Costs Close the Deal

• Lease spaces or • Site inspection • Collect signatures
entire properties • Travel costs • Begin abstraction
• Leverage contacts into Oracle Property
Manager

Build Relationships
• Capture history of all interactions
• Use in positioning on next opportunity or
opportunity with same entity
Construction Management
Oracle Products

 Corporate and Oracle Financials

Oracle Projects
Retail/Franchise Oracle Project Collaboration
– Leasehold improvements Oracle iProcurement
Oracle Purchasing
– Refurbishments Oracle Sourcing
Oracle iSupplier Portal
– Store build outs
Oracle Discrete (Project)
 Commercial Real Estate Manufacturing

– Building construction
Operations and Facilities Management
 Operations
– Financial management
– Lease execution
– Space management
 Facilities Management
– Facilities request execution
– Preventative maintenance
Oracle Products
Oracle Financials
Oracle Property Manager
Oracle iReceivables
Oracle Enterprise Asset
Management
Oracle Projects
Oracle Project Collaboration
Oracle Purchasing
Oracle iProcurement
Oracle iSupplier Portal
Oracle iSupport
Comprehensive Property Management
Improve Lease and Space Administration

Set Terms Pay & Receive Take Action

• Capture property info • Create transactions • Exercise options
• Establish contract • Automate approvals • Ensure compliance

Create
Assign Transact Monitor Execute Analyze
Lease

Allocate Space Track Milestones Summarize

• Assign tenants • Identify key dates • Determine utilization
• Partition floor space • Send alerts • Calculate profitability

Maintain & Leverage

• Capture performance and changes to terms
• Use for future decisions & negotiations
Facilities Management Solution

 Enterprise Asset Management

– Self-Service Work Request
– Extension of eAM

 Customer Relationship Management

– Oracle iSupport
– Oracle TeleService
– Oracle Field Service
Site/Asset Disposal
 Corporate
– Excess capacity
– Consolidation opportunity
 Retail/Franchise
Oracle Products
Oracle Financials
Oracle Property Manager
Oracle Discoverer
Oracle Sales and
Financial Analyzer

– Under performing stores

– Unused store fixtures
 Commercial
– Low profitability
– Consistently high vacancy
rates
Oracle Real Estate Management
 Financials
– Oracle Financials
– Oracle iReceivables
– Oracle Advanced
Collections
– Oracle Financial and Sales
Analyzer
– Oracle Internet Expenses
 Maintenance Management
– Oracle Enterprise Asset
Management
 Projects
– Oracle Projects
– Oracle Project Billing
– Oracle Project Collaboration
 Manufacturing
– Oracle Discrete Manufacturing
 Procurement
– Oracle Purchasing
– Oracle iProcurement
– Oracle Sourcing
– Oracle iSupplier Portal
 Sales
– Oracle Sales Online
 Marketing
– Oracle Marketing
 Service
– Oracle iSupport
– Oracle TeleService
– Oracle Field Service
Oracle Real Estate Management
Key Value Propositions

 Optimize construction execution keeping projects on-time

and on-budget

 Reduce administrative costs by automating lease

execution and optimizing space utilization

 Lower maintenance cost with efficient work order and

preventative maintenance execution

 Provide data transparency through a single repository of

real estate activity data
Oracle Property Manager

Functional Update
Oracle Property Manager

 Property Definition
 Space Management
 Lease Administration
 User Definable Billing and Payment Terms
 Rent Increases
 Variable Rent
 Recoveries
 Full Integration to Receivables and
Payables
Recoveries

 Oracle’s term for our support of Common

Area Maintenance (CAM) functionality
 Open design to accommodate any
recoverable expense
 Integration to Oracle General Ledger but
also supports other expense sources
 Solidifies our footprint for Commercial
Real Estate Management
Recoveries Value Propositions

 Automates process of CAM billing and

reconciliation

 Minimizes errors throughout the recovery

calculation

 Ensures complete recovery of all CAM

and other expenses through integration
with Oracle General Ledger
Dynamic Location Naming

 User Definable Labels

– Building – Floor – Office
– Land – Parcel – Section
 Addresses needs across markets
– Retail
 Mall – Level – Unit
– Communications
 Site – Tower – Area
Date Effective Space Definition

 Supports markets that offer or manage

flexible space
 Allows for definition of prospective or
future space
 Provides robust data model for
sophisticated spaces planning and
reporting
Oracle Property Manager
Key Value Propositions

 Reduce operating costs by automating lease

execution

 Minimize contractual and financial risk with

Milestone Management

 Identify cost savings/revenue opportunities with

Space Administration capabilities

 Provide data transparency through a single

repository of lease activity data
Oracle Property Manager

Current Initiatives
Real Estate Daily Business Intelligence

Role Oriented
Page

Key Performance
Indicators Management
Summaries

Links to Drill-
Down Reports
CAD Capabilities - Autodesk

 Available NOW!
 Effort to “standardize” integration between
Autodesk and E-Business Suite
– White Paper on integration
– Reusable templates
 Starting with Oracle Property Manager data but
will include Oracle Enterprise Asset
Management data as well
 Public Views created and supported by Oracle
Development
Real-Time CAD Integration
170 Systems Initiative

 170 MarkView Document Management

and Imaging System™

– The 170 MarkView Document Management

and Imaging System™ enables businesses
to capture and manage 100% of their
information online, regardless of its original
source or format.
170 Systems Initiative

 Proposed Solutions
– Image of lease document available during
lease abstraction
– Intelligent linkage between Reference field
and specific place within the lease
document
– Electronic audit package distribution as
support for Recovery (CAM) calculations
– Automation of lease abstraction process
Oracle Property Manager

Customers
Oracle Property Manager Customers

 Many Customers Live, Implementing, or

Planning Implementations
 Spanning Multiple Countries
– Australia – Ireland – New Zealand – Taiwan
– Canada – Japan – Philippines – United Arab Emirates
– Denmark – Korea – Qatar – United Kingdom
France Kuwait South Africa – United States
– – –
– Venezuela
– Hong Kong – Mexico – Spain

 Across Many Industries

– Financial – High Tech – Commercial – Retail/Restaurant
Services – Manufacturing Real Estate – Services
– Healthcare – Public Sector – REIT – Telecom
Oracle Property Manager CAB

 Members
– Cross Industry representation
– Landlord and Tenant representation
 Meetings
– Physical meetings every 6 to 8 months
– Virtual meetings in between
 Activities
– Enhancement prioritization and voting process
– Regular correspondence with Product Analysts
– Beta testing engagements
– Co-Development opportunities