More and more corporations are deriving economic benefits from investing liquid assets in funds that contribute to business growth in overlooked inner city and rural markets. These companies are partners in sound concerns with expanding potential earnings. At the same time they reap returns on their investment and contribute to the economic development of areas where their customers and employees often reside.
D. Wayne Silby
Co-Founder
Calvert Group, Ltd.
 
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Investing physical or financial assets in ways that contribute to your competitive positioning and add value. How do you streamline the process and find deals that provide a return on investment? Many companies benefit from the expertise of community developers and socially responsible investment networks which can assist in all aspects of management of corporate assets from site location to identifying solid business opportunities to investment vehicles that put money to work.
 

Managing a corporation’s assets, both physical and financial, can be enhanced through investment in community economic development, resulting in strategic competitive advantages for firms. According to the 2001 Annual Survey of Corporate Real Estate Practices from the University of Reading, office buildings, manufacturing plants and warehouses often comprise 20-30 percent of corporate assets. For many companies seeking to reduce overhead costs, relocation or cost-efficient expansion is critical, particularly during times of economic uncertainty.

According to research by Harvard economist Michael Porter, "many businesses seeking to expand or locate in the inner city have difficulty finding suitable sites or navigating the approval and permitting process. National nonprofit intermediaries often have significant expertise in real estate which could be applied to the development of commercial and industrial property (including site assembly, demolition, and environmental cleanup), identifying appropriate sites for expansion, and assisting companies in the permitting and approval process."

Many corporations have found that working with community developers—nonprofit groups already experienced in real estate and neighborhood revitalization—creates the basis for successful relocation or expansion of physical assets. In addition, such ties can help an employer identify and train local residents who will be reliable workers. And an alliance with nonprofits can build trust with a community, giving the corporation an inside track with residents, local institutions, and small merchants in a community.

Companies have also invested their financial assets in socially responsible investment funds that yield returns and contribute to business and economic growth in disadvantaged areas. These companies often team with equity fund managers and nonprofit corporations to identify the best markets. Through careful analysis and joint ventures, corporations are uncovering new opportunities for capital investment in reliable, growth-oriented businesses in underserved markets.

find an expert that can help your company with real estate and other investment decisions
 
   
  © 2002 Laufer Green Isaac