State of the Industry Report 2007-2008

Chapter Twelve loCatIon strategIes related Issue: site selection morphs to portfolio alignment There’s an entirely new supply-side and assetmanagement mentality influencing the demand side of the industry as a result of strategic portfolio integration being aligned with the business plan of the enterprise. Today’s mantra of “global portfolio integration” is partially the byproduct of the service provider industry’s response to corporate outsourcing – once of core functions and now broadened to more globally integrated forms of support like portfolio optimization. Our 2007 findings point to the need for economic development corporations (EDCs) to adopt a portfolio perspective to understand the changing needs of corporate prospects or clients as they relate to companies’ global business plans – and the influence of the service providers also involved. key faCtors shapIng edC go-to-market strategy • Globally integrated portfolio • Lease vs. own trends • Growth of sale-leasebacks • Flexible leasing terms • Impact of outsourcing on portfolios and site selection • Supply chain integration as part of outsourcing • Talent and the changing nature of work The emergence of the War for Talent was first implied by CoRE 2010 from the perspective of knowledge work. It was later defined as the “creative class” by Richard Florida in the Harvard Business Review. In either case, the fact is that knowledge workers are seeking progressive places – locations and employers - to live and work. This phenomenon means that the weight of talent as a location decision factor is quickly growing. EDC’s are beginning to shape their go-to-market strategies around talent needs. For example, The metro atlanta Chamber of Commerce’s “Young and Restless” strategy proactively markets the metro region to young professionals and students worldwide. emergIng markets CoRE 2010 also predicted that “market forces will compel multinational corporations to accelerate the globalization of their real estate and location strategies.” “Hot” new geographies to fuel this global expansion would be an important part of the corporate growth strategy and were part of the forecast. Specific markets would be Brazil, Russia, India and China (BRIC). Others are Central and Eastern Europe and Malaysia. Our 2007 survey confirms the growing importance of emerging markets as identified by CoRE 2010. While North America remains the corporate market of choice globally, there’s a growing preference for emerging markets in Eastern Europe and Asia over other mature markets like Western Europe. Other cases support the trend but also include Central Europe. The practice of offshoring also continues to grow as part of this trend, based on the export of physical production being expanded today to the movement of business processes and knowledge enterprises, as reported in CoRE 2010. related Cases emerging markets in Central and eastern europe new global location hot spots emerging markets in asia loCatIon and workforCe Talent, workforce and location functions now pose a huge question for CRE. As one CRE executive observed, “You don’t have to be a driver (of location decisions) but you need to make sure all the right people in the corporation are being brought together to perform due diligence.” For a small number of CRE departments, designing and implementing integrated location and workforce strategies is their ‘bread and butter.’ But a larger number are not engaged enough around workforce issues. A related case presentation illustrates how CRE departments and their service providers – working with corporate HR departments and business units – can align location decisions to business growth by using demographic modeling. Click here for the CB Richard Ellis “Workforce Longevity Model,” winner of the 2007 Global Innovator’s Award. chapter twelve State of the Industry 2007-2008 51 http://www2.corenetglobal.org/home/index.vsp https://www2.corenetglobal.org/dotCMS/kcoSearch?search_type=advanced_search&keyword=all&search_field=Central+and+Eastern+Europe&kwPublicationMonth=-1&kwPublicationYear=-1&assetTopicsInodes=40453&assetTypesInodes=0 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=2886452 http://www2.corenetglobal.org/dotCMS/kcoSearch?search_type=advanced_search&keyword=all&search_field=Asia+Emerging+Markets&kwPublicationMonth=-1&kwPublicationYear=-1&assetTopicsInodes=0&assetTypesInodes=0 http://www.metroatlantachamber.com/ http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=1810583

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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