Net Asset Value serves as a financial North Star, offering a standardized measure of a facility’s current value, accounting for depreciation and aging. It’s a dependable benchmark for setting performance goals, prioritizing investments and optimizing project selection.
Receive your NAV estimate using the free calculator below!
* Range displayed is an indicative estimate, derived from Gordian’s extensive and verified database of facilities assessment and performance metrics. This tool is not intended to prepare an actual measurement and will be subject to the information provided. Contact Gordian for more details on this estimate, the strategic application of an NAV measurement or any of our actionable Planning Solutions.
What it means: Your organization’s facility profile is strong and predominantly includes new or recently renovated buildings with limited risk. Your facilities are well-maintained, reliable and you are primarily dealing with repair and replacement needs of a more aesthetic or general nature.
Investment strategy: At this stage, your investment focus is typically capital upkeep, enabling your team to take a more measured approach to selecting projects rather than the projects picking you.
What it means: Your organization’s facility profile is likely aging, but still well-maintained with limited risk. Your physical portfolio is defined by younger spaces, coming up on their first batch of lower cost system replacements. Your spaces are beginning to show their age with sections of wear and tear requiring more significant investment on a case-by-case basis.
Investment strategy: Your investment approach is typically one of comprehensive stewardship, intended to manage the needs of younger spaces and address lifecycle needs before they become past due and create additional risk to your facilities. This is prime time to start planning for the next five to 10 years of capital investment.
What it means: Your organization’s facility profile is undergoing accelerated aging, with apparent and increasing deterioration. Infrastructure is vulnerable to failures, leaks and outages and costly lifecycle replacements are likely required. You may be experiencing unexpected work orders or spending more of your time reacting to building needs.
Investment strategy: Your investment approach is typically a mix of managed care and reactive crisis response. As the wear and tear escalates, there is an urgent need to invest to reset the clock and then adopt a proactive keep-up strategy that will allow for sustainable, cost-effective solutions for long-term success.
What it means: Your organization’s facility profile looks worn with obvious deterioration and major building components are no longer running efficiently and, in some cases, may be risking failure. Your space is defined by widespread reliability issues and the risk to business continuity is high, increasing capital demands and the strain on your operational teams. You may be facing difficult decisions on the future use of some of your space and are faced with having to prioritize which project should be funded next.
Investment strategy: Your investment approach is typically one of reactive crisis response to catch up with the intensifying vulnerabilities and prevent major system failures that compromise program and resilience. Major renovation, demolition or other divestment strategies should be considered in troubled facilities to alleviate pressure on resources. In scenarios where there is more need than funding available to address it all, a strategic analysis is necessary.
Our team is ready to help you gather your facilities data, create an actionable investment plan and integrate facilities strategy into the very fabric of decision-making. Contact a Gordian representative today.
Watch this webinar recording for strategies for shifting your organizational mindset from focusing on return on investment to considering a different ROI: the risk of inaction. You’ll find out how to use data to tell a compelling story and make savvy investments.
Facilities capital planning is one of the most important activities regularly undertaken by organizations. It’s also one of the most complex. Gordian’s guide will help you successfully sharpen your facilities investment strategy.
This collection of resources takes an in-depth look at facilities condition assessments, covering everything from options for gathering data to ways to prioritize facilities data once its collected, to ways Gordian can help collect facilities condition data.
Identify your project. Fill out a quick form. Get started with our Gordian JOC experts.
Enter Your Project Now