State of the Industry Report 2007-2008

Chapter Eleven chapter eleven dIsIntermedIatIon Another 2007 finding is the preemption, or disintermediation, of EDCs providing market, demographic and other key information that support location decisions. CRE departments and their site consultants are increasingly finding this information on their own through the Web. But by 2010, we should expect to see the number of EDCs today that have enhanced their own web site information to expand so that more become part of the disintermediation solution and not removed from it. By 2010, the tendency by companies to find market data on their own will become an established practice. the role of emergIng markets and m&as The due diligence component of site selection is critical, especially where emerging markets are concerned. “It’s akin to opening a new business on the other side of the world.” So the ability to support decisions also extends into much riskier, less-developed markets, and to the M&A processes that often accompany entry into those markets. Here again, some CRE departments are playing the role of trusted advisor with a “seat at the table.” But the gravitational pull of globalization will mean even more will achieve this status by 2010 as more companies “centralize the design of location strategy and final approval for major capital expenditures in new or existing locations.” see related case from Oracle via the May, 2007, Chicago Discovery Forum beyond 2010: • Top management will insist on understanding how a new operation affects the global portfolio in support of critical business objectives, and business unit requests for new facilities will no longer be processed individually. • It’s already happening to some extent but with a need for more alignment to the global business plan of the enterprise and C-Suite with CRE senior executives continuing to cite credibility within the executive and business unit suites as an ongoing issue. It’s a long-term issue that will take time, like IRIS, to iron out. • “The destination is only part of the journey, and the journey is just beginning,” as CoRE 2010 stated in 2004. possIble outCome: More occupiers are bypassing traditional sources of location information like EDCs usually provided. A noteworthy and related CoRE 2010 precept is based on the ideal of CRE partnering in IRIS-like fashion with other parts of the enterprise and external partners to accurately inform and support the location decisions of their companies. Leveraging the technology to create the metrics enabling location decision support is one key. This is becoming a strong point for more CRE departments, as also seen in the areas of workplace and portfolio performance metrics, that suggests a wider adoption by and influence for CRE in the next few years and beyond. State of the Industry 2007-2008 50 http://www2.corenetglobal.org/home/index.vsp http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=2585403

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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