Portfolio optimisation is an ongoing process of improvement, better performance and of creating flexibility in the portfolio. It is a staged process and has two distinct stages. The first stage involves the continuous assessment of risk, demand and supply and financial structures of a company and the second stage involves the identification of specific actions which would minimise the risk, maximise the returns while aligning with the unique objectives of an organisation. Corporate Real Estate (CRE) departments which have traditionally been reactionary and tactical departments are now under pressure to move towards an orientation that is strategic and flexible and geared towards the optimisation of the real estate portfolio. This paper will provide an overview of how the CRE departments can optimise their portfolios using the Six Sigma approach. The Six Sigma approach was developed by Motorola in 1986 for process improvement and product development. The Six Sigma approach has helped various organisations such as Honeywell, GE, Caterpillar and the Bank of America in improving their process, making cost savings and optimising their portfolios. DMAIC (Define, Measure, Analyse, Improve and Control), which is one of the core principles of the Six Sigma approach will be used to illustrate how the CRE portfolio can be optimised using the Six Sigma Approach. The key aims of the paper will therefore be: to introduce the concept of portfolio optimisation and the key structured methods and techniques that can be used by the CRE executives to provide agility and strategic direction to their portfolio.