State of the Industry Report 2007-2008

Chapter Three lInkIng loCatIon and talent strategIes there’s a war for talent across the entire enterprise, too. For some CRE departments, tying location and talent strategies to the business growth of the company is their ‘bread and butter,’ but more need to start doing this to play a leadership role inside the corporation. Companies and their CRE departments are responding to the War for Talent in several key ways: • Aligning enterprise talent strategy to CRE location strategy • Integrating workplace and sustainability practices with location strategy • Using long-term planning to address workforce, labor supply and demand needs by market globally. The result is that talent, workforce and location functions now pose a huge question for CRE. ‘The elevation of the location strategies and talent functions is a huge question globally.’ ‘The war for talent continues, and we now have to look outside of Asia for the right resources, but this is proving expensive. Retaining them is difficult.’ sustaInabIlIty Sustainability is being functionalized and formalized within corporations, much as CRE was before it. It is now an embedded business practice. Some companies have added the title Chief Sustainability Officer to their executive suite. Energy and carbon reduction emerged quickly in 2007 as the key focal points for the CRE interface with sustainability and corporate social responsibility – CSR. CSR is how CoRE 2010 framed sustainability but the environmental piece clearly morphed CSR into sustainability, energy and carbon reduction in 2007. The rising price of energy and the fact that commercial serVICe proVIder m&a’s Outsourcing is now a driver of Service Provider consolidation at the global level, where the supply side of the industry needs to match the scale of its globalized clients. What are the pro’s and con’s of the consolidation taking place in the service provider industry worldwide from the end user perspective? • Pros – less hassle, centralized interface, fewer people calling on the client, better coverage and service delivery in general, higher-level support on KPI’s, M&A’s, portfolio optimization, flexible leasing and other forms of asset management • Cons – reduced competition; two people with equally strong talents used to compete for same work, now both work for same firm so only one team comes to the table How much more service provider consolidation will there be? It will continue – leaders will be further ahead than today; newer comers will lag behind but if fundamentally a good organization, will catch up. ‘Service provider consolidation continues in Asia as large players like CBRE and JLL acquire smaller niche practices.’ One or two more acquisitions in generalist firms • A ”Big 4” of CRE Service Providers is possible • Not as good as five, but still provides some competition • Issue is whether service providers can be truly global – can a firm deliver full service in every location? Generally not. Gives end user the opportunity to partner with providers and with their other clients to share knowledge, drive innovation, grow particular market, etc. chapter three State of the Industry 2007-2008 13 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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