Globally, corporate real estate is “future-proofing” to manage risk
Jun 6, 2017, 10:59 AM
CBRE recently released the fourth installment in its reporting on corporate real estate (CRE) executives’ priorities, strategies and outlook.
Conscious of the risk that continuing change in the economy, labor markets and technology and poses, CRE decision-makers are “future proofing” by improving user experiences and prioritizing agility in their space use.
The report draws upon a survey of more than 350 CRE executives managing commercial real estate assets and operations around the world.
Economic uncertainty was cited as a top-three concern by more than half of respondents, including 52% of Americas respondents, 64% of those in EMEA, and 68% in APAC. Compared to last year, these figures were up 16 and 6 percentage points respectively in the Americas and EMEA, while remaining consistent in in APAC.
Enterprise businesses continue to adapt to technological advancement, shifting talent demands, and increasing complexity in global supply chains. Adopting a shared-workplace model—the benefits of which include costs-reduction, shorter terms and increased flexibility—is one strategy. Meanwhile, occupiers are working to enhance occupants’ experience in the workspace—reinventing or adapting workplace standards, pursuing WELL-certified buildings and implementing activity-based working.
Where portfolio shifts were reported, respondents from 11 of 13 global markets were slightly more likely to anticipate expansion than contraction. They were most bullish on India and China, with more than 30% and 20% predicting net expansion in those countries, respectively. Expectations for net space contraction (if mild) were strongest in the established markets of Western Europe and North America.
With strategies and solutions ranging from opportunistic to reactive and from agile to committed, smart real estate decisions can be made in any industry, any property market, and any economic environment. Our advice to clients is to be cycle-aware. Stay informed and ahead of the curve: For a copy of the full report, visit www.cbre.com/gos. Our earlier regional reports can be accessed there as well.