State of the Industry Report 2007-2008

Chapter Two the Cre technology discussion is framed around: • Enabling work • CRE management As illustrated in several case examples below, the impacts of mobility on the nature of work are already pronounced: Core 2010 areas of relatIVe Change In 2007 Concerning the other value dimensions and drivers of CoRE 2010, it was less a matter of significant change and more of relative or directional change for: • • • • • The Changing Nature of Work Asset Management & Portfolio Optimization Location Strategies Solutions Delivery Integrated Resources Infrastructure (IRIS) • M&A activity affecting portfolio, number of heads of CRE and staff – interdependencies between service provider and end user have huge impact • Procurement’s involvement in CRE – brings rigor to outsourcing pricing, policies, etc. • Shift from cost reduction as priority to growing difficulty to achieve what’s expected of RE because of focus, sophistication, multiplicity of challenges, how do you keep pushing the envelope? • Corporate governance – growing issue for CRE, bigger expectations, more data driven (bigger than SOX); about transparency – getting the data and sharing the data about business performance; Sun Microsystems now posting significant data on website • Procurement, outsourcing – RFP world requiring huge staff to respond; RFP process hard to drive lowest cost because of cost of responding; process also isn’t going to uncover “next best thing”, innovation • All trends making it hard to hide from C-Suite – getting seat at table today coming from interaction between C-Suite and CRE; proving value and contribution • CRE industry growth indicator: There’s a notable increase in number of organizations wanting to have something to do with CRE; growing exponentially - Conference board - Executive board chapter two major Change drIVers roundtable observations major change drivers Trends and drivers affecting CRE today as seen by senior corporate real estate and service provider executives during the January 2008 CoreNet Global Industry Leaders Roundtable: • Emerging Markets – economic growth, CRE response to support this • Technology – telepresence, distributed meetings, mobile work; impact on portfolio • U.S. Dollar – changes in value affecting how and where people work, product sales, strategy • Capital investment in CRE – funds from different countries affecting pricing • Outsourcing continues at accelerated pace • Global competition for resources • Sustainability requirements – energy, global emissions, materials (prices rising, shortages in global regions), have risen much faster than anticipated for 2010 • When generations collide – four generations in the same workplace shifting how companies using real estate as recruiting tool (pulls employees and companies together); CRE drives down cost previously, now it’s about how CRE supports workforce recruitment, retention • Consolidation of service providers – not a lot of choices; no big mergers anticipated in 2010; what does this mean for supply and demand sides of industry? • Power of place and how it feeds into its brand, corporate social responsibility, attracting talent; organizational values an important tool - 2010 sustainability was corporate social responsibility which morphed into 3BL. State of the Industry 2007-2008 10 http://www2.corenetglobal.org/home/index.vsp

Table of Contents Feed for the Digital Edition of State of the Industry Report 2007-2008

State of the Industry Report 2007-2008 Contents Chapter 1: Introduction : CoRE 2010 Framework and Report Structure Chapter 2: The Changing Business Environment Chapter 3: Executive Summary of Key Findings and Conclusions Chapter 4: CoRE 2010 Adoption Rate Chapter 5: Sustainability/Corporate Social Responsibility Chapter 6: Global Sustainability Survey and Roundtable Findings Chapter 7: Workplace Practices/Work Environments Chapter 8: Workplace Related Issue: The War for Talent Chapter 9: Asset Management/Portfolio Optimization Chapter 10: Solutions Delivery Chapter 11: Location Strategies/The Strategic Role of Place Chapter 12: Location Related Issue: Site Selection Morphs to Portfolio Alignment Chapter 13: Strategic Competencies/Enterprise Leadership Skills Chapter 14: Competencies Related Issue: The War for Talent in Corporate Real Estate (CRE) Chapter 15: Integrated Resources Infrastructure Solutions – IRIS Chapter 16: Technology and the Web Chapter 17: Technology Related Issue: Removing the Obstacles to Industry Data Standards Acknowledgements and Sources

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