A Wild Week!

Aside from those directly involved with REIT industry, corporate real estate professionals are generally not front and center when stock markets have volatile swings, as they have this week.

But it’s worth noting that outgoing Fed Chair Janet Yellen has recently noted that commercial real estate prices are high, according to a CNBC report:

“In addition to elevated equity prices, Yellen also said commercial real estate is ‘quite high’ compared with rents.

‘Now, is that a bubble or is too high? And there it’s very hard to tell. But it is a source of some concern that asset valuations are so high,’ she said.”

Those high prices may impact the real estate decisions that are being made globally by multinational companies.

For now, the most immediate concern for corporate real estate professionals is pretty much the same as everyone else’s: How’s my 401K holding up?

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Is Day Zero Coming?

It sounds apocalyptic, and for the residents and companies of Cape Town, South Africa, it may very well be.

Cape Town has called “Day Zero,” the moment in time when the city’s water supply is expected to be depleted. Day Zero was anticipated for April 2018, but has been pushed back to May 11 because other regions in South Africa have supplied a billion liters.

Whether or not Day Zero happens, water could well be a concern for the corporate real estate profession, according to an article in The Financial Times.

“Water will become more valuable than oil as rising demand from people, industries and agriculture puts pressure on supplies, according to the chief executive of French utility Suez. (CEO) Jean-Louis Chaussade…said water scarcity posed one of the biggest challenges facing industries such as chemicals, drugs, mining and energy.

Asked whether water would one day be a more valuable commodity than oil, Mr Chaussade told the Financial Times: “In future, probably yes.”

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Earning Power Goes Up for Corporate Real Estate

The corporate real estate (CRE) profession pays well, and more than it used to. That’s pretty much what we’ve been saying every year that we have compiled a compensation study for the profession with our partner FPL Associates.

But it’s true again, according to our most recent survey:

Eighty percent of participants received an increase in their base salary between 2016 and 2017. Additionally, 76 percent of participants expect to receive an increase between 2017 and 2018.

What do CRE executives earn by position and by geographic region? And what were the top perks? Look for the full webinar and press release of our study later this month.

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Hey Amazon, Why Don’t You Make The Decision For Your Second North American Headquarters With “One Click?”

That’s essentially the message in a Change.org petition supporting a non-aggression pact for Amazon’s campus, which is expected to deliver tens of thousands of jobs and billions of dollars in economic benefit for the jurisdiction that lands it.Read more

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We Interrupt this Disruption….

After binging the new season of your favorite show on Netflix, did you call an Uber to the airport, where you listened to your favorite Spotify playlist?Read more

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Outsourcing in Corporate Real Estate

Very often, a corporate real estate department will partner with a service provider so closely that the service provider’s employees are housed within the corporation on a near-permanent basis.Read more

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Is A High Tech, Big Brand Corporate Campus Coming Your Way?

In alphabetical order, these are the 20 cities still in contention to be home to Amazon’s second North American headquarters, according to CNBC:

  • Atlanta
  • Austin, Texas
  • Boston
  • Chicago
  • Columbus, Ohio
  • Dallas
  • Denver
  • Indianapolis
  • Los Angeles
  • Miami
  • Montgomery County, Md.
  • Nashville, Tenn.
  • Newark, N.J.
  • New York City
  • Northern Virginia
  • Philadelphia
  • Pittsburgh
  • Raleigh, N.C.
  • Toronto
  • Washington, D.C.

If your city is not on the above list, there is still hope a tech giant could be headed your way. Apple announced that is building a new campus somewhere in the U.S. that would house 20,000 people.

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AI is Here, But What Does It Mean for People, And for Jobs?

Artificial intelligence, or AI, is no longer a concept of the future as it is very much in the present. Do you have an Amazon Echo or an iPhone with Siri or a Google Home device? You are using artificial intelligence.Read more

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Real Estate Trending Down in Singapore, But Poised For a Comeback

In roughly two months, CoreNet Global will once again hold a global summit of corporate real estate executives in Singapore. Our Asia-Pacific summits are always a fascinating window into real estate trends throughout Asia, and in Singapore we’ll get an upclose look at this small country, which is a center of commerce for the continent.Read more

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Revisiting NAFTA

Speculation is increasing that President Trump will seek to pull the U.S. out of NAFTA, The North American Free Trade Agreement that was created in 1994.Read more

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What is the Smart Corporate Real Estate Play in China?

If there’s one thing that’s true about China, it’s probably that it’s about to change. China, led by a communist regime, has one of the largest and fastest growing economies in the world.

A new CoreNet Global whitepaper, Corporate Real Estate Strategies Shift in Maturing Marketplace, explores the most up to date strategies for corporate real estate executives who want to establish and/or grow their companies’ presence in China.Read more

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Alexa, Show Me What Our New Sales Center Would Look Like

For several years, attendees of the CoreNet Global summits around the world have been trying on virtual reality and augmented reality devices that replicate building sites, plans, and concepts. Walk from the parking lot to the sales center, view the green roof from above and compare various interior layout concepts – all without leaving the CoreNet Global Innovation Pavilion.Read more

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