CORT News Center

Furniture Rental as Asset Management Strategy

Businesses Outsource Furniture Management to CORT for Cost Savings, Flexibility

FAIRFAX, VA (October 7, 2009) – Facility managers are benefiting by partnering with CORT for flexible management of furniture inventory. CORT, a Berkshire Hathaway company and the only national furniture rental provider, serves as a strategic partner for facility managers seeking ways to reduce costs and efficiently manage the impact of organizational change while providing a high-quality work environment.

Furniture can accumulate as a significant hidden cost and burden on a corporation as excess furniture accumulates through age or shifts in company size and locations over time. Furniture has not traditionally been considered a strategic investment, yet as facility management is increasingly recognized as an integral component of a business' strategy, many businesses are realizing that renting furniture to meet some or all of their needs can be a wise option from a financial and operational perspective.

CORT has served facility managers for the past four decades, and is leveraging their expertise in the rapid deployment and management of furniture rental to enable the flexibility, efficiency and productivity of companies by providing the furniture they need precisely when they need it.

"The role of the facility manager is changing and CORT is excited to play a part in supporting this evolution," said Paula Green, vice president of national accounts. "The increasing speed of business, changing demographics and lifestyle preferences of our workforce, and a stronger link between facilities and business strategies make CORT a natural partner to serve facility managers tasked with doing more with less."

Corporations have always looked for opportunities to free up their balance sheet and create liquidity which can be invested in their core business. When the total life-cycle cost of ownership and the capital consumption for furniture acquisition is considered, the opportunity to outsource these functions and costs should be considered to unleash valuable human and financial assets for higher return opportunities in the company's core competencies.

A recent report from the International Facilities Management Association (IFMA) identified the ability to effectively manage change and the increasing speed of business as a key skill necessary for successful facility managers. Facility managers will be called upon to provide strategies with built-in flexibility for managing operational changes, regulatory changes, facility expansions and relocations and staffing changes. Outsourcing contracts for furniture and other equipment can play a critical role in helping facility managers reach these goals.

CORT also offers a national purchase-leaseback program that allows companies to transform office furniture into cash for strategic investments. Small to medium-sized businesses with more than 150 employees are the primary candidates for CORT's purchase-leaseback program. If a company meets qualifications, CORT will buy the used office furniture and lease it back over 36 months or longer. For additional information on the purchase-leaseback program, please visit www.cortstrategicsolutions.com.

For more than 35 years, CORT has been the nation's leading provider of rental furniture with a global network of affiliates in more than 50 countries. CORT, a Berkshire Hathaway company, also provides the nation's most comprehensive range of rental relocation services, including online apartment search services at www.ApartmentSearch.com. CORT's customers include more than 80 percent of the Fortune 500 companies. For more information, please visit www.cort.com