Trends and Issues in Corporate Real Estate

Eric BowlesCoreNet Global

Director of Global Research

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Agenda

CoreNet Global Overview CoRE 2010 Workplace Trends Future Research and Issues

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CoreNet Global

Professional association for the corporate real estate industry

Geography· Global membership of 7000· 70% in North America· 55 chapters – United Kingdom, Germany, Australia, China,

India, etc. Profile

· Senior corporate real estate executives, direct reports and senior leaders

· Global 2000 companies· Providers of services to corporate real estate

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CoreNet Global Value to Members

Networking· Summits· Chapters / Chapter Events· Discovery Forums· Communities

Education and Knowledge· Summits· Chapters / Chapter Events· Discovery Forums· Communities· EDP / SLR Professional Educational Programs· Leader magazine· Knowledge Center Online· Research / Expert Surveys

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How will KI get involved with

CoreNet?

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How will KI penetrate CoreNet and the CoreNet Membership?

Increased Membership

Sponsorship

Learning Partnership

Research Partnership

CoRE 2010: Enabling Work in a Networked World

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2010: Forecast for Work

The 2010 workforce is:· Culturally diverse· Younger and older· More independent:

no guaranteed employment, benefits or future affiliation

The Work Environment is CONNECTIVITY In 2010, work itself is mobile, not just workers Corporate Real Estate’s new role is

Workspace Strategist

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2010: A Changing Business Environment

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2010: Transition toward a Networked Virtual Organization

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2010: Moving from Shared Services to Workplace Strategist

TODAY 2010

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2010: Changing Where Work is Done

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How do I apply this information?

CoRE 2010: Context and Progress to date

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Breakdown of facilities costs

72.40%

7.90%

3.60%

2.70%

1.90%

3.70%

7.80% Rent & Taxes

Service charge

Maintenance

Staff

Utilities

Security

Other expenses

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Trends in workplace objectives

4%

20%

20%

20%

20%

45%

54%

29%

8%

16%

16%

58%

0% 10% 20% 30% 40% 50% 60% 70%

Introduce new technologies

Improve communication

Facilitate changes in business practices

Increase collaboration

Improve business processes

Improve the working environment

Improve employee attraction / retention

Allow staff choice of where and when to work

Increase mobility

Reduce costs

Increase workplace utilization

Improve efficiency and productivity

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We discovered that 70% of our knowledge-workers were already mobile before beginning our initiative

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30

Empty

Unoccupied

Not obtainable

Pausing

Paper handling

Reading

Writing

Talking

Telephone

Computer

Meeting

Time of day – avg. over 2 week observation period

% S

eat

s O

ccup

ied

40+% of our seats are vacant every day

an additional 30% are unoccupied during the course of the day

40% Vacant

30% Unoccupied, yet sign of life

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New Workplace Choices

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Capital One: We let the people influence what we do

associates choose work style

MobileTeleworker Resident Anchor ExecutiveWork Style

Technology

n/an/a

Manager Choice Manager Choice

Manager Choice

Manager ChoiceManager Choice Manager Choice Manager Choice

Manager Choice

Wireless G Laptop & IM

Cell Phone

Blackberry

Home Broadband

VPN

Softphone

Wireless Headset

Home Wireless Router / MFD

assigned workstationhome office unassigned choice

Yes

Yes

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

Yes

Yes

No

NoNo

No

Yes

Yes

Yes

Yes

Yes

Yes

Desk

YOU CHOOSE!!!

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Current Workplace Features

19%

12%15%

19%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than 60% 60% to 70% 70% to 80% 80% to 90% More than 90%

Percent of Workplaces Assigned To Individuals

Sharing of desks still not widespread

Major barrier to improved utilization

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Current Workplace Features

0%

10%

20%

30%

40%

50%

60%

Less than10%

10% to 20% More than20%

Approx. what percentage of employees routinely work from home for all or part of the working week?

Home working is still not widespread 48% of CRE departments do not support home

working

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How do I apply this information?

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2010: Measuring Efficiency and Effectiveness

“You Can’t Manage What You Don’t Measure”

or

“You Can’t Get Funding Without a Business Case”

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How is effectiveness measured?

10%

46%42%

26%

47%

70%

31%33%

24%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Cost Space Employee Customer Productivity

Objective

Subjective

Top Issues for Corporate Real EstateJanuary 2007

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Industry Roundtable: Top Issues for 2007

Talent – For the business and CRE Sustainability – When to act and what to do Workplace – Improving efficiency and

effectiveness Sourcing – RFP complexity Cost Pressure – Always on the list Flexibility and Agility – CRE as a catalyst or

obstacle Globalization – Delivering CRE globally CRM – Business advisor and strategist Governance – The next tier of SOX

CoreNet Global Applied Research Center

Eric BowlesDirector of Global Research