Trend 1: Expectations and pressures on corporate real estate (CRE) build, heightening the risk of underperformance

Leadership pressure demands action at tactical and strategic levels. CRE teams are being challenged to impact a wider business agenda.

The rising expectations of senior leaders require CRE teams to make a step change. Minimal investment in in-house CRE talent in recent years has led to a scarcity of the strategic skills needed to deliver improvements in workplace productivity and worker productivity. When combined with resource constraints, the ability to fully deliver this agenda is unrealistic.

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TREND 1 KEY FINDINGS

  • Reporting primarily to the C-suite—senior company executives such as the CEO, COO and CFO—has enabled CRE teams to strengthen the alignment between business and CRE strategy. However, economic realities and capital expenditure constraints have maintained pressure on CRE teams to implement short-term tactics, often to the detriment of longer-term strategic moves. This focus has been aimed at bolstering corporate financial performance through cost savings and/or capital release.
  • Most CRE teams are finding it challenging to continue achieving year-on-year cost-saving targets through tactical means, as most of the easier opportunities within portfolios have already been realized.
  • A more strategic set of demands is therefore gaining significance, such as driving improved workplace and worker productivity. These fresh demands apply further pressure to CRE teams and expose structural flaws that jeopardize their future contribution and position.
  • Corporate resistance to capital expenditure, the at times small and fragmented structure of the CRE function, inadequate access to deep data and analytics to measure value and a fundamental skill and knowledge gap within CRE teams all present barriers to meeting this rising demand.
  • The future qualities perceived as most required by CRE teams suggest that these capacity caps and skill gaps will become even greater obstacles to their contribution and ultimate success.
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Risk: Perceived underperformance if step change is not realized

Key Statistics

Company expectations of productivity outcomes from CRE

CRE leader’s ability to meet new demands

New behaviors are ranked most important as real estate impacts a broader business agenda