Corporate Real Estate trends worth considering

Posted On Monday, 07 May 2012 02:00 Published by eProp Commercial Property News
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A US based study has considered a wide range of external and macro-economic, societal, political and other influences, triangulating these drivers against trends affecting globally networked enterprise and the corporate real estate universe, offering concepts that can be applied to South Africa

Matt FanoeCoreNet Global is the world's leading association for corporate real estate (CRE) and workplace professionals, service providers and economic developers. Its 7,000 members include some 70% of the top 100 U.S. companies and nearly half of the Global 2000. This association meets locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally.

One such initiative is the recently completed year-long Corporate Real Estate 2020 project which brought together hundreds of CRE global thought leaders to analyze and appraise the industry's current and future state, and includes interviews with more than 150 CRE executives, service providers and economic developers. 

Backing the effort are Pinnacle Sponsors AT&T, HOK, Johnson Controls and Jones Lang LaSalle; Premiere Sponsor Cresa; and Leadership Sponsors Cushman & Wakefield, Steelcase, Cassidy Turley, HermanMiller, Regus and the County of San Bernardino, California.

Matthew J. Fanoe, Chairman of CoreNet Global's Board of Directors and Vice President of Real Estate at Coca-Cola Refreshments USA Inc. "We've furthered that proud legacy by examining a host of often-connected issues at one of the most complex junctures of human history. For our board and members, we believe that Corporate Real Estate 2020 serves as a roadmap for the future."

The project delves into eight industry domains, including Enterprise Leadership, Location Strategy and the Role of Place, Portfolio Optimization and Asset Management, Service Delivery and Outsourcing, Sustainability, Technology Tools, Workplace and Partnering with Key Support Functions. Each team focused its research on six to eight Bold Statements.

Among the key Bold Statements:

1. On Location Strategy: There will be a re-emergence of manufacturing in developed countries and regions such as the U.S. and Western Europe with smaller regional facilities, and South America and Africa will be the new hotspots for business process outsourcing (BPO) and manufacturing activity.

2. On Sustainability: Buildings, sometimes connected by micro grids, will be both consumers and producers of energy. Evolution in energy storage will impact building operations, transportation and planning.

3. On Partnering with Key Support Functions: Formation of a "Super Nucleus," the combination of a corporate entity including components such as CRE, IT, Finance, Purchasing, Legal, etc., in a company-specific context. High-performance companies will know how to bring these functions together on a day-to-day and strategic basis. This function will not be "one-size-fits-all" and will vary depending on a company's organizational structure, culture and industry sector.

4. On Workplace: CRE executives will evolve to "Experience Managers," or plan administrators, offering employees an a-la-carte workplace experience with a menu of services, location and support.

5. On Technology Tools: Intuitive environmental sensing provides emotional intelligence cues leading to reduced stress and increasing the efficiency and effectiveness of space use and communication in the workforce (using technology to sense temperature, lighting, sound and other measurables in a room or facility - and to gauge the emotional state of its occupants).

6. On Enterprise Leadership: Senior corporate real estate leaders will be able to measure the impact of workplace infrastructure on business units and the enterprise - a capability often referred to as the "Holy Grail" of the industry.

7. On Portfolio Optimization: Organizations will recognize the potential detrimental impact of cost cutting on productivity, changing the conversation from cost containment to value creation.

8. On Service Delivery and Outsourcing: Real Estate business objectives and goals will become more integrated with Procurement and, therefore, more sophisticated and complex.

Corporate Real Estate 2020 represents a continuum that began in 1993 with the introduction of Corporate Real Estate 2000, and in 2004 with Corporate Real Estate 2010. Both of these prior, future-facing initiatives yielded defining concepts such as telework, flexible work and the globally networked enterprise. The changing nature of work and corporate social responsibility are among the other breakthrough concepts from CoreNet Global's lineage of transformational research.

The program comes at a time when corporations and their CRE teams address a mixed global economic outlook, volatile financial markets and still-recovering commercial property and capital markets.

"Our member-led research teams believe these Bold Statements present a vision that's both realistic and achievable by 2020," said Tim Venable, Vice President of Knowledge and Research for CoreNet Global. "But even if some of these bold predictions aren't fully realized by then, Corporate Real Estate 2020 will help prepare our industry and profession for the challenges that lie ahead."

 

Last modified on Monday, 19 May 2014 15:31

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