Challenge

In 2000 the company was decentralized and had no formal real estate structure or defined processes. District or office managers were often responsible for all real estate functions. To increase its focus on core business growth, H&R Block decided to source a portion of its real estate functions in 2000.

Solution

When hired in 2000, Colliers first had to determine where all of H&R Block’s properties were located. Colliers inventoried the portfolio, abstracted the leases, and entered the data into REFLEX, our proprietary process management system. When H&R Block acquired Olde Discount Securities in late 2000, Colliers provided additional lease abstracting and administration services, helping Block integrate the properties into their portfolio, and selling un-needed owned properties.

In 2001, Colliers began handling lease renewals for H&R Block’s locations, enabling H&R Block’s managers to re-focus on core business needs instead of leasing activities. Also in 2001, H&R Block decided to enhance their brand image. Within the first 3 years of development, Colliers was involved in the implementation of a newly developed brand package in over 2700 corporate and franchised locations. This branding initiative consisted of furniture, fixtures, graphics, and signage responsibilities on behalf of the client.

Colliers designed a customized REFLEX system for H&R Block, providing a fully integrated technology platform to track and manage lease administration, transactions, facilities management, and portfolio services. In 2004, H&R Block was poised for business growth. Block asked Colliers to open more than 600 locations within seven months. Colliers delivered an unprecedented 621 new locations. In 2005, H&R Block asked for 550 new locations; and Colliers delivered 555 for tax season. During this period of rapid growth, Colliers continued to provide valuable lease renegotiation and renewal services for the existing properties. H&R Block has also leveraged Colliers’ repair and maintenance management services to manage work orders and repairs.

Today, H&R Block has 6,800 nationwide leases in their US Tax portfolio. Using REFLEX, Colliers continues to manage all transactions and lease administration, including accounts payable and receivable for its United States portfolio.

Results

• Opened 1,400 new H&R Block Tax locations in 3 years.
• Complete an average of 1,480 lease renewals per year over the past three years with an average annual increase under 2.5%.
• Identify savings of $1.14 million per year from reviewing over 27,500 rent invoices per year, and over $76,000 annually in facility management related savings.
• Transmit 6,500 rent payments to Landlords each month through the centralized rent process
• Enabled Block to achieve their real estate growth goals.

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