NXP SemiConductor- Commercial Real Estate case Study - Cushman & Wakefield

C&W Helps NXP Reduce Real Estate Costs by 30%


Click to enlarge

The Challenge

Formerly a division of Phillips, NXP is a leading global semiconductor company with operations in more than 25 countries and 28,000 employees.
Headquartered in the Netherlands, NXP has a very lean Corporate Real Estate team that wanted support to take a more strategic approach to supporting the business and major projects' delivery.
NXP engaged Cushman & Wakefield in April 2010 to assist it in creating a global portfolio database, provide strategic account management, and transact management services. During contract negotiations, NXP set a challenging 30% cost-reduction target by 2013.

 


The Solution

Cushman & Wakefield first supported NXP to gain a full overview of its real estate portfolio and take a more strategic approach to property decisions by helping to create a database. Our Lease Administration team abstracted all leases and populated the database on NXP’s behalf. Then, Cushman & Wakefield Account Managers provided NXP with a portfolio analysis and jointly identified opportunities for cost reduction, looking at critical dates 18 to 24 months in advance, and overlaying this with market analysis to support NXP in taking action at the right time and in advanced budgeting.
Cushman & Wakefield also created a bespoke FUSION site, transaction process toolbox, and reporting dashboard for NXP, which includes a one-page, live property report linked to the database that is always accessible to the NXP CRE team.
The database allowed NXP to comprehensively understand its portfolio metrics, identify inefficient buildings where spatial savings could be achieved, and decide on target space metrics for future projects. In collaboration with NXP, this tool continues to be developed to provide NXP with real-time business unit reports and analysis.
Additionally, our team worked with NXP to identify innovative ways to reduce costs – conducting service charge audits, property tax audits, and offering Facilities Management consulting services to review all portfolio costs. Cushman & Wakefield also worked on a savings-based fee basis to help NXP achieve savings targets.

 


The Result

In 2011, our team completed 10 projects for NXP around the globe including leasehold acquisitions and disposals, freehold disposals, valuations, property tax audits, project management, and business consulting. Delivering a value-add equivalent to several million U.S. dollars via leasehold transactions, Cushman & Wakefield also helped NXP raise significant capital through freehold divestments in the United States and the United Kingdom. There are a further 11 ongoing projects, as well as multiple pipeline projects already identified that will continue to contribute towards the savings target.
Additionally, NXP has access to a comprehensive database containing portfolio metrics and critical dates, as well as a central reporting tool and standardized processes. As the NXP CRE team has evolved and changed, Cushman & Wakefield has proactively worked with NXP to restructure the account team to meet our client’s changing requirements and ensure best-service delivery.
Regular and structured reporting has helped the team stayed focus on progress and achieving the agreed-to goals.