Jones Lang LaSalle, a key VFA partner, has just released a global corporate real estate report that provides powerful insights into the current condition and future direction of the industry. Based on the responses of more than 600 corporate real estate executives from 39 countries, the report identifies five main trends:
- 1. “Expectations and pressures build, heightening the risk of underperformance” The pressure has increased dramatically over the past few years on productivity and efficiency of corporate real estate management. Companies are expecting CRE teams to deliver enormous productivity gains – 72% in workplace productivity, 57% in business productivity. There’s no room for error with these expectations. Successful companies embrace best practices in strategic facilities capital planning and asset management to realize impressive returns and outcomes, instituting an approach to capital planning that enables effective oversight and review. Using accurate, current facility condition data, they develop defensible plans and budgets that balance competing needs. Read about this trend here.
- 2. “Increased demand is leading to faster paced evolution of CRE outsourcing” The increased pressure and demand, seen in the first trend, contributes to companies looking to partner for their CRE needs.
- 3. “Workplace transformation is the key to unlocking worker productivity and optimizing portfolios” It’s no myth that the workplace affects workers’ productivity. This spans from the mundane, like operational phone systems, to the more impactful, such as the best use of space in light of new technologies. CRE is expected to increase workplace productivity by as much as 72% in the next few years, if managed well.
- 4. “CRE must become a collaborative change agent” CRE affects productivity and the performance of other areas of business. The result is that executives expect CRE to be more integrated with business strategy. Companies need to apply disciplined practices, processes, management tools, and technologies that enable a stronger relationship between corporate strategy and the organization’s facilities and help to determine whether the condition of real estate portfolios support the organizational mission.
- 5. “Failure to deliver in emerging markets will become one of CRE’s greatest reputational risks” Undoubtedly, emerging market are key to corporate competitiveness. CRE will have to deliver operational platforms in these growing markets and remain agile as the challenges in these emerging markets rapidly change.
Get the full report from Jones Lang LaSalle: Global Corporate Real Estate Trends 2013.