SAN DIEGO-The results of a year-long research project titled Corporate Real Estate 2020, which brought together hundreds of CRE global thought leaders to analyze and parse the corporate real estate industry’s current and future state, were revealed during this week’s CoreNet Global Summit here. The project, through interviews with more than 150 CRE
executives, service providers and economic developers, examined a wide range of external and macro-economic, societal, political and other influences, triangulating these drivers against trends affecting the globally networked enterprise and CRE itself.
The initiative focused on eight industry domains that are key to corporate real estate’s success: enterprise leadership,
partnering with key support functions, portfolio optimization and asset management, sustainability, location strategy and the role of place, technology tools, service delivery and outsourcing and workplace. Under each domain were revealed bold statements about how each would be affected by the year 2020.
“We went in to test these hypotheses to see whether they held up or not,” Mary Jane Olhasso, economic development agency administrator with the County of San Bernardino, told GlobeSt.com at the Summit. The agency helped sponsor CRE 2020, and Olhasso was involved in the location-strategy research. “We did primary and secondary research on near shoring manufacturing and found that more manufacturing is occurring in developed nations.”
Olhasso adds that this research was necessary because corporate real estate executives need to base their decisions in
reality. The research involved discussion topics and two case studies. “We would sit down and listen to them and try to understand what’s important to the corporates as they get into the space.”
Among the bold statements about each industry domain revealed by the project are:
Enterprise leadership—By 2020, senior leaders will champion
change in the supply side of the service industry, including more innovative
partnerships and the seamless integration of internal and external resources
Partnering with key support functions—The skill-sets required to
be a leader in this new integrated workplace entity will be more strategic in
nature and benefit from a more diverse set of experiences, including exposure
to other support functions and a far deeper understanding of the business.
Portfolio optimization and asset management—Demand forecasting
will improve and significantly narrow the band of uncertainty in regard to
future requirements. Forecasting will become less dependent on management’s
predictions, and better able to use external factors to predict demand.
Sustainability—Regulatory incentives for resource efficiency and
market penalties for resource inefficiency will meaningfully increase by 2020.
Location strategy and the role of place—There will be a
reemergence of manufacturing in the developed countries with smaller regional
Technology tools—Corporate real estate strategy now includes
“goodwill assets” that include third places (e.g., home offices and coffee
shops) in supporting diversified workplaces that increase productivity,
recognizing the value of the worker ecosystem.
Service delivery and outsourcing—Clientele will drive service
providers to grow their platforms internationally.