The Leader - July/August 2008 - (Page 84)

I Ndustry t ra cker by richard kadzis the state of the Industry report corporate real estate Is chaNgINg the Nature of BusINess We said that globalization would change the nature of corporate real estate (CRE), and now we’ve come full circle. CRE has become a driver of globalization for multinational corporations. That’s one of the key findings of CoreNet Global’s first-ever State of the Industry Report, published 27 March for members only at www.corenetglobal.org. (Editor’s note: Members were sent an e-mail 26 March, indicating individual passwords to access the report.) Key findings include: n CRE is changing the nature of business n We impact a wider range of business activity on a broader scale n CRE emerges as a resource for the entire company n We’re ahead of the curve in some areas and behind it in others The report reflects the voice of the CRE industry and examines the current and future state of CRE. More than 60 senior-level executives helped validate the findings at the January 2008 CoreNet Global Industry Leaders Roundtable. Why is the report important to CoreNet Global members? It outlines a number of key areas in which multinational corporations are using the CRE function as a driver of global growth and as a strategic asset, no longer as a cost center. The report reflects some big changes since 2004, when CoreNet Global benchmarked a new business model known as the globally networked enterprise through our CoRE 2010 research with Gallup. Some of those changes are unexpected. They include the velocity and impact of energy management, carbon reduction, regulatory and other environmentally- and cost-related CREdriven initiatives. These and other sustainability issues vary from one global region to another. New drivers like climate change, the War for Talent, mobile technology, location strategies and flexible workplace practices have either pronounced themselves for the first time or accelerated faster than expected, compared to our 2004 baseline. Still, others are lagging. Macro-economic business forces are also elevating the leadership role of CRE and placing it in the ‘driver’s seat’ in many ways. These include: n Ongoing expansion and integration of the global economy n Aligning CRE strategy with companies’ global business plans n Continued emergence of new consumer, labor and supply markets n Increasing use of mergers and acquisitions to enter emerging markets n Monetization of real estate assets to increase capital and mitigate risk Resulting linkage of CRE to the capital markets n High-speed broadband and wireless technology with secure remote access n Resulting advances in smart buildings, mobile and collaborative work n A mix of multiple generations in the workplace n Reputation and brand based increasingly on socially responsible practices n Sustainably integrated supply chain practices surrounding products and policies n The war for talent globally and inside CRE With these and other big changes, companies are increasingly using CRE as a resource for the entire company. Trends and practices show, in our members’ words, that “CRE is uniquely qualified” to enable corporate global expansion as “we touch every aspect of the corporate organization.” n We increasingly have a ‘balcony view’ of the enterprise n We’re solutions providers for the C-Suite or business units, but our ability to partner with other internal shared services, especially HR, is lagging n Integrated supply chain management is now a key facet of CRE. Still, talent shortfalls in areas like project management represent critical gaps n CRE leaders are increasingly coming from other parts of the corporation n th e le ade r 84 J u ly / a u g u s t http://www.corenetglobal.org

Table of Contents Feed for the Digital Edition of The Leader - July/August 2008

The Leader - July/August 2008 Leadership Contents Message from the CEO Real Estate in the News Organizational Design Accommodating Growth Responding to the Challenge EMEA's Building Energy Rating TVA's Shortcut to Success ANZ Banking Group’s Jane Hamilton Tractus Asia’s Dennis Messeroll Arizona’s Greg Weiner Workplace Design Workplace Directory The Texas Report Industry Tracker Discovery Forum Findings Career Development Congratulations to 2008 Corenet Global Award Winners! Young Leader Economic Development in the News Connect with Corenet Global A Look Ahead

The Leader - July/August 2008

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