Real Estate Consolidation
Office portfolio rationalization & footprint optimization — Siemens × Altair
Key Office Consolidation Plan
| Location | Type | Action | Annual Savings ($M) | Status |
|---|---|---|---|---|
| Troy, MI (HQ) | Altair HQ | Consolidate into Siemens Detroit | $4.2M | Needs Attention |
| Munich, Germany | Siemens HQ | Altair EU team co-located | $2.1M | On Track |
| Santa Clara, CA | Altair R&D | Merge with Siemens Silicon Valley | $3.8M | Needs Attention |
| Paris, France | Altair EMEA | Merge with Siemens France | $1.4M | On Track |
| Tokyo, Japan | Altair APAC | Merge with Siemens Japan | $1.2M | On Track |
| Bangalore, India | Altair Engineering | Expand — co-location opportunity | $0.8M | On Track |
| Detroit, MI | Altair Auto | Consolidate into Troy HQ | $2.6M | Needs Attention |
FusionForce AI Recommendations3 insights
The Altair HQ consolidation in Troy, Michigan is the single largest real estate savings opportunity at $4.2M/year, but it is currently blocked by an Altair lease with a break clause not exercisable until September 2026. FusionForce recommends engaging the landlord now to negotiate an early exit — offering 3 months of accelerated rent in exchange for a June 2026 exit would save $2.8M net compared to waiting. Legal has confirmed the approach is permissible.
Altair's Bangalore office (280 engineers) is currently in a standalone facility at $2.2M/year. Shared campus capacity is available at Bangalore Technopark — co-locating Altair's India R&D team would reduce costs to $0.8M/year (saving $1.4M annually) while consolidating the delivery footprint. This also accelerates onboarding of Altair's India-based product support team into the combined entity.
Santa Clara R&D ($3.8M/year) and Detroit Auto ($2.6M/year) are the two remaining high-value consolidation targets. FusionForce analysis shows 92% of Santa Clara employees can be absorbed into Siemens' existing Silicon Valley campus with no productivity impact. The Detroit team (87 engineers) can be co-located in the Troy HQ consolidation. Combined, these two actions unlock $6.4M/year in savings and can be completed by Q3 2026.