Motorola Centralizes; Cuts to Come in 2002

Motorola Inc.'s corporate real estate department has three key thrusts for 2002, and they all involve reductions?of space, sites and ongoing operation costs.

"With the turmoil of the economy and ... tech sector, it's creating (the) need," explained Rick Kriva, vice president & director of real estate and development.

Kriva and his staff prepared for the change, and moves they made 12 to 18 months ago are now paying off. Using the company's previous rapid growth model, the department had been heavily decentralized, which later became sub-optimal, said Kriva, who has centralized operations since he took over the helm in 2000. With this method, he has minimized redundant overhead resources and created an environment of increased communication and efficiency.

One example is the "breakaway workplace" strategy, a mobility initiative that was launched in Denver two years ago and has since been rolled out to more than 30 locations. It reduced space and increased its utilization. "It also enables people to better balance their work life situations," remarked Kriva.

The real estate team, which numbers just 20, is spread out among the world's major markets: Western United States; Eastern United States and Canada; Latin America; Europe, Middle East and Africa; and Asia-Pacific. Each group services a part of Motorola's 40 million-square-foot portfolio, which is split between office and industrial, and leased and owned product.

Kriva recently aligned with Binswanger/CBB worldwide and with its help expects to cut the number of sites by 20 percent and produce cost reductions of more than $100 million in 2002.

However, he also anticipates attracting strong tenants. In fact, Motorola recently signed the likes of TYCO International Ltd. to take some of its excess space in Mansfield, Mass.

He is also looking overseas. China, for example, is on the top of his list. "It's clearly a major driver for our future. We're investing and growing there," Kriva concluded.