An organization is considering relocating from leased building #1 into leased building #2. Leased building #1 is 55,000 sq. ft. costing $1,100,000 annually. Leased building #2 is 50,000 sq. ft. costing $1,100,000 annually. Building #1 can house 500 people and building #2 can house 580 people. The company's benchmark is $2,000.00 per person per year for leased space.
What is the MOST important reason to know what the company's benchmarks are?
- It allows other organizations to measure against your results.
- It structures your recommendations in a method your managers require.
- It provides a quantitative measure to support your recommendations and decisions.
- It simplifies the budgeting process.
Answer(s): C
Explanation:
Knowing company benchmarks provides a quantitative measure (C) that supports informed decision- making in real estate and facility planning.
Benchmarking allows for comparisons of space efficiency and cost-effectiveness.
Why not other options?
(A) External comparisons are secondary to internal decision-making. (B) Structuring recommendations is beneficial but not the primary reason. (D) While benchmarks aid budgeting, they primarily validate decisions.
Reference:
IFMA Core Competency Real Estate & Space Planning
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