A barometer of CRE confidenceMay 21, 2013 / By Anne Thoraval
Only 28% of Corporate Real Estate (CRE) executives globally feel well equipped to meet all tactical and strategic demands from the C-suite and senior leadership.
Correlating these responses with the acceleration of CRE outsourcing, we see that CRE executives fare better in mature countries such as the US, while in less mature ones the perceived ability to rise to the challenge is more limited. This is particularly true in Asia Pacific, where only 21% feel well-equipped region-wide and none at all in Japan.
Source: Jones Lang LaSalle, Risks Ahead- Global Corporate Real Estate Trends, 2013
Pressures resulting from this lack of confidence are not likely to subside. The spotlight shone on CRE two years ago as the result of the global financial crisis has only gotten brighter. Greater engagement with the C-suite and closer alignment between business and CRE strategy have led to an uncomfortably broad range of demands being placed on CRE professionals. Not only do CRE executives need to continue to deliver tactically, but an expanded set of more strategic demands are building up.
At the tactical level, reducing costs remains at the top of the traditional demands that have been in play with CRE teams for some time. At the strategic level, delivering productivity outcomes is consistently cited as the most crucial. While workplace productivity improvement was featured in our 2011 report as an emerging trend for best-in-class workplace strategy, it is now reported as a high expectation by senior leadership. This primary focus is also taking CRE beyond the workplace to encompass people, business and asset productivity.
Strategic requirements are coming as an addition to – not in replacement of – previous demands. They are calling for different skill sets and represent a drain on capacity. If combined with frequently low investment in the CRE function, mounting C-suite expectations increase the risk of CRE teams underperforming. Step change is needed for CRE to fully deliver to its elevated agenda. Read other survey findings in Jones Lang LaSalle’s report Risks Ahead! Global Corporate Real Estate Trends.