Banks should practice active, holistic, and integrated real estate management—and they should do it now

As banks increased their presence in the real estate market, they also increased their exposure to risk. Some are launching new processes and tools to manage that risk—but those measures may not go far enough.

At a glance

• Banks should strike a better balance between mitigating real estate risks and capitalizing on the opportunities in their real estate assets.
• Launching new processes, roles, and business and operating models can be very useful, but a piecemeal approach may only have a limited impact.
• In addition to those efforts, banks should integrate real estate management into their overall business strategies.
• Creating a chief real estate office is a good place to start.