Risks ahead Global Corporate Real Estate Trends

1 global survey

636 responses

39 countries

5 trends

5 risks

1

636

39

5

5

Trend #1 Increased C-suite expectations on CRE teams

Risk Perceived underperformance if step change is not realized

4

Question: How are the demands of senior leadership/C-suite on the CRE team changing in the following areas?

Base: 545 respondents (those who responded that demands are increasing)

Strategic demands Tactical demands

CRE teams are being challenged to impact and add value

to a wider range of agenda items

5

Question: How well equipped do you feel to meet the tactical and strategic demands placed on CRE teams by the C-suite?

Base: 545 respondents

Only just over a quarter of CRE executives believe that

they are “well equipped” to meet all C-suite demands

Trend #2 Faster-paced evolution of CRE outsourcing

Risk Undervaluing external contributions

7

Question: Please rate your current attitudes toward outsourcing on a scale of 1–5. Base: 519 respondents (companies that practice

outsourcing)

CRE outsourcing is increasingly seen as a strategic

imperative

8

Question: Is your internal procurement team actively involved in CRE?

Base: 545 respondents (left pie) - 373 respondents (right pie - those with procurement involved)

The active involvement of procurement is a chance that

can also bear the risk of under-valuing partnerships

Trend #3 Workplace transformation is the game changer

Risk Not investing enough to fulfill strategic potential

10

The extent of

workplace transformation

over the last three years

and envisaged

over the next three years

Question: To what extent has your global corporate workplace transformed over the last three years/over the next three years in terms of

quantity, quality, utilization and density? Base: 545 respondents

Workplace productivity is being addressed through CRE,

but there is recognition that more could, should be done

11

Question: In your organization, what is the single most limiting factor in driving workplace transformation?

Base: 545 respondents

Lack of investment capital is the most limiting factor to

workplace transformation

Trend #4 CRE becoming

a collaborative change agent

Risk Losing influence by

standing as a specialist

13

Question: How would you describe the collaboration of CRE with the following business functions today? How do you think the

collaboration of CRE with the following business functions will be in three years’ time?

Base: 545 respondents. Note: In this table, percentages combine top ranked “ad hoc” and “project-based” collaboration responses.

Ad hoc collaboration Shared-services type of collaboration

Collaboration between functions is already occurring,

much faster than previous industry predictions

Trend #5 Mandate to deliver in emerging markets

Risk Damaging CRE reputation through delivery failure

3.2 looking to the future

evolution of portfolio

“Don’t Know” and “Not Applicable” have been

removed for analysis purposes

Questions: C20 / Total n=536

Note - Net growth is calculated as the percentage of respondents who expects portfolio size to increase minus the percentage of respondents who

expects portfolio size to decrease. Shaded area indicates average net growth rate across the region

The select growth markets that companies are expanding

in…

Source: Jones Lang LaSalle Global Real Estate Transparency index (GRETI) 2012

… are also the world’s least transparent real estate

markets

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