Solution in Detail Engineering, Construction, and Operations Commercial Real Estate

Solution in Detail
Engineering, Construction, and Operations
Executive Summary
Solution Overview
Contact Us
Commercial Real Estate
2013 SAP AG or an SAP affiliate company. All rights reserved.
Executive Summary
Solution Overview
Contact Us
Boost Your Real Estate Portfolio

Portfolio Management
Optimized Management
Managing corporate real estate has long been low on the executive priority list.
But pressure to reduce operational spending and carbon footprints as well as strict
financial regulations, have changed this.
Improved Profitability
SAP Innovations
40%
Higher operating margin for firms
in North America, Europe, the
Middle East, and Asia with an
enterprise-wide performance
management discipline
To succeed during times of globalization, real

estate managers need to ensure compliance with
tenant, tax, and financial reporting regulations.
For example, operational leases have to be
accrued according to U.S. GAAP. And in the
future, once the planned new International
Financial Reporting Standards (IFRS) for leases
is deployed, you must be able to capitalize leases
for the balance sheet.
To achieve sustainability targets, you need a
way to carefully track the energy consumption of
commercial buildings, as well as accurately
allocate costs for energy consumption to tenants.
To fight competition, you need to make more

informed investment decisions regarding
construction and modernization projects. You
also need a way to monitor projects closely,
improve tenant relations, and standardize and
automate real estate processes to reduce
administrative overhead costs (for example,
for lease administration and maintenance).
SAP solutions help you by supporting comprehensive real estate lifecycle management.
They cover investment, construction, sales,
marketing, land ease, and space management,
maintenance, and more.
Source: SAP Performance

Benchmarking
2 / 23
2013 SAP AG or an SAP affiliate company.

All rights reserved.
Executive Summary
Solution Overview
Contact Us
Optimizing Real Estate Management

SAP solutions help improve investment decisions, reduce project risks, accelerate
lease-out processes, boost lease revenues, and control key dates. You can
increase workspace utilization, reduce maintenance overhead, improve energy
consumption reporting, and facilitate compliance with financial reporting standards.
SAP Innovations
To optimize investment and construction,
you need a way to analyze your property
portfolio, track investment decisions, handle
construction services bids and awards, monitor
projects and contractors, and manage cash.
Best Run Engineering,

Construction, and Operations
Sales and marketing departments need

tools that drive campaigns for vacant space,
help them qualify leads, match spaces
with prospective tenants, process and track
concrete opportunities, and create lease offers.
Managing lease and space effectively demands

that you track approval workflows, post leases
according to accounting standards, escalate
rents, and settle rents and service charges.
You also need to track workplace occupancy
and automate moves and room reservations.
Optimizing maintenance and repair requires
that you monitor budgets, measure energy
consumption, recover expenses from common
area maintenance, and handle maintenance,
repair, and service orders.
SAP solutions address all of these activities
in an integrated way that supports end-to-end
processes.
3 / 23

Executive Summary
Solution Overview
Contact Us
Improve Portfolio Profitability

SAP Innovations
For real estate managers, the benefits of end-to-end real estate lifecycle
management are enormous. You can increase return on investment by making
better decisions and reduce instances of overruns by controlling budgets.
You can reduce vacancies through faster lease-outs and increase revenues
by invoicing more accurately. SAP solutions also help you lower administrative
costs by automating processes and facilitating compliance, resulting in:
Higher return on procurement, construction, and modernization investments
Reduced project risks
36%
Higher operating margin for
organizations using IT to
enable strategic and
competitive advantages
Fewer vacancies
Increased lease revenues
Faster energy reporting
Reduced administrative cost
Full compliance with financial reporting standards

Benchmarking
4 / 23

Executive Summary
Solution Overview
Contact Us
SAP Innovations
With SAP solutions, you can consistently promote your retail, office, and residential
space. The solutions can help you identify the right offer more easily, provide fully
consistent lease abstracts, and create a validated, detailed contract offer.
SAP Innovations
Integration between the SAP Customer
Relationship Management and SAP Real
Estate Management applications supports
close collaboration between sales and
marketing teams and lease administration staff.
SAP Real Estate Management also supports
activity planning for real estate units and makes
it easy to adjust sales gradings in leases. In
addition, it enables full Single Euro Payment
Area (SEPA) compliance and faster periodic
postings and reversals. Thanks to integration
with the SAP Common Area Maintenance
Expense Recovery application, its easier to
handle service charge settlements according
to North American and Australian business
practices (and based on tenant agreements).
5 / 23
You can prepare information for analysis

by migrating data from the SAP NetWeaver
Business Warehouse application powered
by the SAP HANA platform.
Mobile solutions powered by SAP Mobile
Platform support better work, service, and
inventory management, as well as efficient
auditing, approvals, and workflow
management. You can manage inspections
and maintenance rounds of on-site staff.
The SAP Real Estate Management rapiddeployment solution enables a faster, better
implementation of core real estate processes.

Executive Summary
Solution Overview
Contact Us
End-to-End Lifecycle Management

Solution Overview
Property Portfolio Management
Lease and Space Management
Posting Runs and Sustainability
Enterprise Asset Management
Why SAP?

Analyze the real estate portfolio, track investment decisions, monitor projects, and
manage cash for adequate funding.
Manage lease details, post leases according to accounting standards, escalate rents,
settle sales-based rents and service charges, and manage corporate workplace.
Monitor budgets, handle work orders, recover expenses from tenants, and optimize
energy consumption.
6 / 23

Executive Summary
Solution Overview
Contact Us
Commercial Real Estate

Solution Overview
Property Portfolio
Management
Lease and Space

Management
Run Postings
and Sustainability

Investment
Investment
Planning
Property
Acquisition
Why SAP?
Lease
Administration
Master
Data
Facility
Management
The SAP solution covers

investment planning to
maintenance for better decision
making, full budget control and
compliance, faster lease outs,
and reduced overhead.
Accounting
Asset
Accounting
Project
Accounting
Real Estate
Search
Content
Offer
Lease
Contingent
Rent
Rent
Escalation
Service
Charge
Settlement
Space
Management
Move
Management
Room
Reservation
Master
Data
Work Order
Energy
Reporting
Cost
Settlement
Receivables
Budget
Payables
Cost
Settlement
7 / 23

Executive Summary
Solution Overview
Contact Us

Solution Overview
Property Portfolio
Management
Capabilities
Benefits
SAP Innovations
14%
Higher annual percentage
savings in indirect material
spend where multiple
suppliers are included in
eRFX and reverse auction
processes
SAP solutions enable you to oversee

investment and construction of assets.
Decide whether, where, and when to
buy, construct, or lease property and
then monitor budgets, schedules, and
project scope.
Electronically invite bids from suppliers,

award contracts, handle purchase orders,
manage invoicing, and track planned,
committed, and actual costs
SAP solutions help you keep acquisitions and

construction projects on track. You can:
Collect and organize all investment ideas,
track approval steps, and analyze decision
criteria including costs, revenues, and
qualitative aspects
Create projects and track budgets, milestones,
deliverables, and delivery dates
Manage land and building acquisition

agreements including property details,
documents, postings, payments, workflows,
critical dates, and asset accounting

Benchmarking
8 / 23

Executive Summary
Solution Overview
Contact Us
Drive Better Investment Decisions

Solution Overview
Property Portfolio
Management
Capabilities
Benefits
SAP Innovations
14%
Higher data accuracy if data
warehouse architecture is
continuously monitored and
enables easy extensions and
integration of new data
Investment planning functions enable you

to track all aspects of investment proposals,
approval workflows, and ongoing projects.
Property acquisition supports the acquisition
of land and buildings by helping you collect
all related documents, manage acquisition
contracts, track their approval status, and
manage critical dates.
Construction management supports planning
and monitoring of construction projects,
including budgets, resources, milestones, work
packages, and procurement of construction
materials and services.
Master data management enables you to
maintain site, building, and land data. You
can also turn this data into visualizations using
CAD software and geographical information
systems.
Asset accounting supports the creation of

new assets so you can capitalize on acquisition
contracts and construction projects, as well as
post depreciation.
Vendor accounting enables you to post
vendor invoices against budgets and pay
open items.

Benchmarking
9 / 23

Executive Summary
Solution Overview
Contact Us
Invest Smarter and Monitor Projects More Closely

Solution Overview
Property Portfolio
Management
Capabilities
Benefits
Empower real estate managers to make

better investment decisions, reduce
project risk, improve the purchase of
construction services, and fully track
property acquisitions.
SAP Innovations
53%
More employees use analytical
data when given access to
advanced analytical tools
without dependence on IT
Benchmarking
Now you can have insight into all investment

alternatives before you make a decision as
you explore different options with detailed
descriptions, pictures, maps, planned costs
and revenues, and approval status.
Once you decide on an investment, you can
oversee all aspects of construction with full
control through functionality for tracking budgets,
resources, scope, and timelines. Its also faster
and easier to manage and collaborate with
suppliers, thanks to consistent bidding,
awarding, and purchase order processes.
You gain full control of all acquisition and

disposal agreements on land and buildings
by tracking all terms, conditions, and related
documents. You can also help ensure full
financial compliance by capitalizing property
acquisition and construction projects and
automatically executing depreciation postings.
And finally, you can create open items on
the vendor accounts of the landlords and
construction companies faster and easier,
as well as efficiently take care of payments.
10 / 23

Executive Summary
Solution Overview
Contact Us
Innovations for Property Portfolio Management

Solution Overview
Property Portfolio
Management
Capabilities
Benefits
SAP solutions enable better investment

planning and project management
for construction, modernization, and
refurbishment.
Insert
image #
here
SAP Innovations
68%
Higher operating margin for
firms in North America, Europe,
the Middle East, and Asia
with mature IT strategy and
business alignment practices
Benchmarking
The SAP Portfolio and Project Management

application makes it easier to manage
investment ideas, consistently align portfolio
planning with project definition and execution,
and gain more insight into financial planning
and resource management.
The SAP ERP application helps you efficiently

manage data for large projects and plan dates
for plant maintenance, customer service orders,
and network activities simultaneously.
The SAP Enterprise Project Connection

application provides an interface to legacy
project management solutions.
11 / 23

Executive Summary
Solution Overview
Contact Us

Solution Overview
Lease and Space
Management
Capabilities
Benefits
In a competitive environment, you need

to increase rental income and reduce
rental expenses while increasing
corporate workspace utilization. SAP
software helps you do all this and more.
SAP Innovations
14%
Higher data completeness for
organizations with systems
that integrate internal, external,
structured, and unstructured data
Benchmarking
To help you efficiently manage leases and

space, SAP offers integrated, comprehensive
real estate lifecycle management solutions that
support:
Management of all lease details
Straight-lining of operational leases for
accounting purposes
Rent escalations based on price indexes
Settlement of sales-based rents for retail
tenants
Recovery of common area maintenance

expenses
Tracking of employee workspace and room
reservations
Payments from tenants to landlords
Planning and analysis of costs and revenues
from leases
Allocation of space utilization costs to cost
centers and projects
12 / 23

Executive Summary
Solution Overview
Contact Us
Manage Leases and Spaces Efficiently

Solution Overview
Lease and Space
Management
Capabilities
Benefits
SAP Innovations
Manage leases from contract closure to

termination, including payments, dunning,
installments, sales-based rent settlements, rent
escalations, and service charge settlements.
Lease management supports comprehensive
lease tracking, timely lease postings, and
monitoring of critical dates and visualization in
CAD software.
Contingent rent enables the settlement of salesbased rent agreements.
28%
Rent escalation supports consumer price

index rent adjustments, contingent-based rent
settlements, or other criteria.
Lower IT spend where

organizations have a
consolidated single solution
or platform landscape
Space management facilitates employee

workspace assignments and space cost
allocations.

Benchmarking
Move management supports move plans

development and employee room assignment
updates.
Cost accounting helps you plan costs and

revenues, input activities, track actual cost and
revenues, and calculate figures.
Accounts receivables and payables enable
the creation of invoices, payments, dunning,
and installments.
Room reservation supports room planning,

including service delivery and cost allocations.
13 / 23

Executive Summary
Solution Overview
Contact Us
Deliver Higher Lease Performance and Space Utilization

Solution Overview
Lease and Space
Management
Capabilities
Benefits
SAP Innovations
14%
Fewer days to close quarterly
books if financial systems
support internal and external
accounting requirements
Benchmarking
With this SAP solution, you can improve

lease performance and facilitate full
compliance with financial reporting
standards. Reporting functions help
you to make better lease management
decisions.
The benefits of this solution are far-reaching.

For example, you can lower costs from expense
leases and increase revenues from income
leases all while reducing administrative
overhead by automating rent calculations,
postings, and more.
Automation helps you invoice contingent rents
earlier (via automated calculation and settlement
processes) and escalate rents in a timely
manner (based on changes in the consumer
price index or other criteria).
Organizationally, its easier to manage corporate

workplaces, plan moves, and manage room
reservations. The software centrally tracks
workplaces and meeting rooms, the assignment
of employees and service orders, and more.
It also helps you efficiently create postings on
accounts receivables and payables, create
invoices, handle payments and collections, run
dunning procedures, create installment plans,
and withdraw open items. You can also quickly
allocate real estate costs and revenues to cost
centers, projects, and orders).
14 / 23

Executive Summary
Solution Overview
Contact Us
Innovations in Lease and Space Management

Solution Overview
Lease and Space
Management
Innovations enable a faster, more

efficient process for lease administration.
Capabilities
Insert
image #
here
Benefits
SAP Innovations
Applications
Lease administration functionality powered by
the SAP Real Estate Management application
gives people an enhanced user experience that
increases efficiency. For example, its easier to
change organizational assignments, and
leveraging full support of the SEPA mandate,
they can automatically create real estate
contracts. Grading rules in sales-based rent
agreements can be readily updated via
automated adjustments.
Individual service charge settlements powered

by the SAP Common Area Maintenance Expense
Recovery application can be run faster and in
a compliant manner for customers.
15 / 23

Executive Summary
Solution Overview
Contact Us

Solution Overview
Posting Runs and
Sustainability
Capabilities
Benefits
SAP Innovations
30%
Lower rework time when
maintenance is streamlined
through the automation of
monitoring, notification, and
problem resolution processes
Benchmarking
Effective management of posting

runs can help prevent delays and
mismatches that cut into margins and
the bottom line. Automating manual and
paper-based processes saves time and
money for service-charge settlements.
The right support can also help
accurately track energy consumption
across multiple facilities.
SAP solutions help integrate, streamline, and
automate facilities operations, helping users
gain process and spending visibility.
Users can access reports on energy consumption

and related costs for each facility, helping them
discover problems and implement cost-saving
measures.
The software can assist in monitoring budgets

via alerts and sophisticated reporting.
The software can help allocate and recover

expenses for common-area maintenance from
tenants.
It helps create, process, and monitor

maintenance and repair orders using standard
processes that improve service levels.
The software can automatically process service
charge settlements, helping streamline
processes.
SAP solutions provide the tools needed to

enhance service levels while facilitating
commercial real estate property management.
16 / 23

Executive Summary
Solution Overview
Contact Us
Manage Postings and Sustainability

Solution Overview
Posting Runs and
Sustainability
Capabilities
Benefits
SAP Innovations
With SAP solutions, you can proactively and

efficiently manage maintenance, repairs, and
energy use.
Master data management enables full tracking
of buildings and equipment so you can plan
maintenance and visualize master data with CAD
software.
Work order functions enable work order creation
based on ad hoc requests or maintenance plans.
Monitor work orders and check budget utilization
based on committed and actual costs.
14%
Lower forecast cycle time
when plans, measurements,
and simulations are
continuous and based on
recent insights
Benchmarking
Service charge settlement calculates the

portion owed by a tenant based on time of
occupancy and energy consumption and posts
to tenant accounts.
Energy reporting tracks energy usage by
assigning meters to buildings and creating
measurement documents and compiled reports.
Accounts payables functions support vendor

invoice processing, including postings and
payments.
Cost accounting helps you plan costs, input
activities, track revenue, and prepare key
statistical figures.
Budgeting helps you control budgets and

avoid overruns via extensive monitoring.
17 / 23

Executive Summary
Solution Overview
Posting Runs and
Sustainability
Capabilities
Benefits
Solution Overview
Contact Us
Higher Asset Value Through Efficient Energy

Management
Armed with integrated functions and
timely insight, you can proactively budget
projects, lower overhead costs, fulfill
service level agreements, and allocate
energy consumption by location.
SAP Innovations
35%
Lower maintenance cost as a
percentage of replacement
value when planning includes
skills, materials, tools, and job
instructions
Benchmarking
With SAP software, you can tightly control

maintenance spending by effective planning and
close monitoring of budgets via sophisticated
reporting and alerts. You can also use automated
work order creation and service confirmation
tracking to manage maintenance, repair, and
service activities more efficiently.
You can improve operational efficiencies by using

automated vendor invoice processing to reduce
the overhead of invoice verification. And detailed
meter readings and automated consumption
calculations and reporting help you produce
compliant energy reporting quickly and costeffectively.
This results in better asset management that

improves the overall state of your buildings and
equipment. For example, you can establish
preventive maintenance based on time and
usage intervals to head off issues.
You can recover expenses for common-area

maintenance from tenants in a faster, more
compliant way by tracking tenant individual
agreements and automating the settlement
procedure process.
18 / 23

Executive Summary
Solution Overview
Contact Us
Innovations for Posting Runs and Sustainability

Solution Overview
Posting Runs and
Sustainability
Capabilities
Benefits
SAP Innovations
29%
Lower annual service and
maintenance cost when all
facilities track the same key
performance indicators
Benchmarking
The SAP Commercial Real Estate

application and related solutions
support sustainability initiatives with
better maintenance and repair
management through linear asset
handling. The solutions provide
enhanced resource scheduling and
the real-time visualization of assets.
Insert
image #
here
Applications
SAP applications deliver key functionality to
optimize asset maintenance and repair. The SAP
Linear Asset Management application helps you
manage rails, pipelines, and cables. The SAP
Enterprise Asset Management solution makes
it easier to manage maintenance orders,
notifications, maintenance plans, task lists, and
more. The SAP Multiresource Scheduling
application makes it easier to align resources
for projects, maintenance, and service.
Visualizations
The 2D and 3D functionality in the SAP 3D Visual
Enterprise Viewer application and SAP
Enterprise Asset Management increase closure
rates of maintenance notifications and increase
technician efficiency.
19 / 23

Executive Summary
Solution Overview
Contact Us
Commercial Real Estate Value Map

Solution Overview
Commercial Real
Estate
Property
Portfolio
Management
Space
Management
Lease
Management
Posting Run
Asset Maintenance
and Facility
Operations
Asset Planning
and Scheduling
Facility
Operations and
Maintenance
Service
Procurement
Spare Parts
Management
Equipment and
Tools Management
Equipment
Planning and
Scheduling
Shipping and
Tracking
Pricing and
Billing

Mobile Asset
Management

Why SAP?
The SAP solution covers

investment planning to
maintenance for better
decision making, full budget
control and compliance, faster
lease-outs, and reduced
overhead.
20 / 23

Executive Summary
Solution Overview
Contact Us
Why SAP?
Solution Overview
SAP provides an integrated, complete real estate management lifecycle

management solution thats ideal for all types of real estate, including office,
retail, industrial, residential, and land assets.

Why SAP?
24%
Tight Integration Across a Complete Solution

SAP software provides a lower total cost of ownership than stand-alone point solutions thanks to
native integration with the SAP ERP Financials solution and the various applications providing
functionality.
Proven Real Estate Management Best Practices
Customers in more than 70 countries spanning all industries have successfully deployed our
solution.
Fast Time to Value for Core Real Estate Processes
The solution has been broadly adopted by leaders across industries and offers comprehensive
best practices that, when adopted, reduce time to value.
Lower IT spend per employee

when organizations have a
single solution to manage
your business
Benchmarking
21 / 23

Executive Summary
Solution Overview
Contact Us
Find Out More About How Your Organization Can

Become Best-Run
Benchmark Your Performance
Position your organization for dominance in this new economy with the business performance
benchmarking program from SAP available free to SAP customers and select prospects.
The SAP benchmarking program has helped more than 3,000 organizations assess their
strengths, uncover areas for improvement, and identify best practices and IT strategies that
generate clear, tangible value not someday, but today.
Visit valuemanagement.sap.com >>
Go Live in Weeks
Heres the fastest way to run your business better: our rapid-deployment solutions. In one
package, you get everything you need to be up and running quickly including preconfigured
software and implementation services in just weeks. With a defined scope and predictable
costs, there are no surprises.
Visit sap.com/solutions/rds >>
Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.
It lets members help one another solve problems, learn, and invent new ways to get things
done faster. Find out how to connect with people, content, and resources.
Visit scn.sap.com >>
22 / 23

Solution in Detail
Engineering, Construction, and Operations
Executive Summary
Solution Overview
Contact Us
CMP 24870 (13/06)
Build more knowledge. Visit us online at:

http://www.sap.com/eco
http://scn.sap.com/community/engineering-construction-and-operations
http://www.sap.com/realestate
Also visit us on:

http://twitter.com/SAPConstruction
http://www.youtube.com/watch?v=c9PGkjiH0Cg&feature=related

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Solution in Detail Engineering, Construction, and Operations Commercial Real Estate

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Solution in Detail

Engineering, Construction, and Operations

Commercial Real Estate

2013 SAP AG or an SAP affiliate company. All rights reserved.

Boost Your Real Estate Portfolio

To succeed during times of globalization, real

To fight competition, you need to make more

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

Optimizing Real Estate Management

Best Run Engineering,

Sales and marketing departments need

Managing lease and space effectively demands

2013 SAP AG or an SAP affiliate company.

Improve Portfolio Profitability

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

You can prepare information for analysis

2013 SAP AG or an SAP affiliate company.

End-to-End Lifecycle Management

Property Portfolio Management

2013 SAP AG or an SAP affiliate company.

Commercial Real Estate

Lease and Space Management

Lease and Space

Posting Runs and Sustainability

Enterprise Asset Management

The SAP solution covers

2013 SAP AG or an SAP affiliate company.

Property Portfolio Management

SAP solutions enable you to oversee

Electronically invite bids from suppliers,

SAP solutions help you keep acquisitions and

Manage land and building acquisition

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

Drive Better Investment Decisions

Investment planning functions enable you

Asset accounting supports the creation of

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

Invest Smarter and Monitor Projects More Closely

Empower real estate managers to make

Now you can have insight into all investment

You gain full control of all acquisition and

2013 SAP AG or an SAP affiliate company.

Innovations for Property Portfolio Management

SAP solutions enable better investment

The SAP Portfolio and Project Management

The SAP ERP application helps you efficiently

The SAP Enterprise Project Connection

2013 SAP AG or an SAP affiliate company.

Lease and Space Management

In a competitive environment, you need

To help you efficiently manage leases and

Recovery of common area maintenance

2013 SAP AG or an SAP affiliate company.

Manage Leases and Spaces Efficiently

Manage leases from contract closure to

Rent escalation supports consumer price

Lower IT spend where

Space management facilitates employee

Source: SAP Performance