A Sarbanes‐Oxley road map: Improving real estate data, dialogue and decision making in support of good corporate governance

The pursuit of good corporate governance, as exemplified by compliance with Sarbanes‐Oxley (SOX), requires corporate real estate (CRE) departments to gain a better understanding of asset values and lease costs than most companies currently possess. As a result, CRE departments are motivated to centralise control over operations globally, to improve systems for ensuring consistent and accurate accounting worldwide and to scrutinise vendors more thoroughly. These changes will be difficult for many CRE departments, but, done properly, the focus on corporate governance will bring greater understanding of real estate’s impact on corporate financial performance, as well as enhancing relationships with the CFO, senior management and business unit leaders.