From our Thought Leader Partner, CBRE.
Part 1: CRE Enables Core Business | Part 2: CRM has Heightened Importance | Part 3: Utilization has Leapfrogged Cost | Part 4: CRE leaders expect to reorganize their teams in 2023 | Part 5: Digital transformation is becoming a key initiative for innovative CRE teams
C-SUITES LEVERAGE CRE TO ENABLE THE CORE BUSINESS
CBRE Institute’s and CoreNet Global’s multi-year longitudinal research project partnership monitors both established and emerging practices in the Corporate Real Estate (CRE) industry. This year’s study surveyed 186 CRE leaders in H2 2022. Respondents oversee combined portfolios of nearly 1.6 billion square feet worldwide, with an average portfolio size of 17.2 million square feet and an average team size of 173 full-time employees.
This article was originally published here and is in a 5-part series throughout Q1 2023.
This segment focuses on CRE mission and key objectives.
Overarching Themes
1. Top three CRE objectives: enabling the core business, creating collaborative workspaces and driving cost savings
2. Top transformational CRE initiative: the workplace of the future
3. Many CRE teams are involved in confidential, strategic M&A activity at the earliest stages
CRE’s elevated mission and purpose
2022 saw CRE’s mission and purpose elevated to new heights. C-Suites around the world are connecting the dots between CRE and its ability to enable the core business—whether through financial value, talent recruitment and retention, decarbonization, or risk mitigation.
Beyond core business enablement, creating collaborative workspaces and driving cost savings round out the top three CRE objectives.
How would you describe the primary mission and priorities of your CRE organization?
Respondents selected their top five.
CUSTOMER RELATIONSHIP MANAGEMENT HAS A HEIGHTENED IMPORTANCE
This article was originally published here and is in a 5-part series throughout Q1 2023.
This segment focuses on enterprise alignment.
Overarching Themes
- The top three C-level positions that CRE continues to report into include the CFO, the COO or the CHRO.
- CRM (Customer Relationship Management) and Portfolio Planning continue to grow in significance.
- Alignment continues to build between CRE and partner functions such as HR, IT, procurement, legal, finance and safety.
CRE Reporting Structure
The top three C-level positions that CRE continues to report into include the CFO, the COO or the CHRO. From this research and historical information, CBRE Institute finds that reporting structures often vary by industry. For example, Financial Services CRE teams often report into the CFO, Healthcare CRE teams generally report to the COO, and we are seeing a growing trend with Tech/Media/Telecommunications CRE teams reporting into CHRO functions.
Which of the following C-level executives does CRE ultimately report into?
UTILIZATION HAS LEAPFROGGED COST AS THE MOST COMMON PERFORMANCE METRIC
This article was originally published here and is in a 5-part series throughout Q1 2023.
This segment focuses on portfolio strategy.
Overarching Themes
- Key portfolio strategies include consolidation, analysis of remote work’s impact, and increased use of flex space.
- The majority of respondents expect a decrease in space allocation per worker in the future.
- Utilization rate has become the most common metric for guiding CRE operations and performance—leapfrogging both occupancy costs and employee engagement/satisfaction.
Anticipated portfolio strategies
Many CRE leaders are undertaking portfolio strategies such as consolidation, analysis of remote work’s impact and increased use of flex space.
These results are consistent with last year’s survey, with the addition of evaluating new markets to gain access to new talent pools.
What portfolio strategies are CRE considering over the next 12 months?
CRE LEADERS EXPECT TO REORGANIZE THEIR TEAMS IN 2023
This article was originally published here and is in a 5-part series throughout Q1 2023.
This segment focuses on CRE organizational design.
Overarching Themes
- Six in 10 CRE leaders anticipate near-term organizational changes to their teams; workplace strategy is now the #1 needed new or different skill in demand.
- Centralization of CRE functions is now a CRE industry mainstay, with CRE teams leveraging service providers for service delivery.
- While CRE teams have historically been organized by function/service area, geography narrowly took the lead as the dominant organizing principle in 2022.
Team reorganizations on the horizon
59% of CRE leaders anticipate near-term organizational changes to their team structures. In fact, 35% anticipate upskilling their internal organizations, while over one-quarter of leaders plan to restructure their teams for better focus on current priorities.
Is the CRE organization anticipating any organizational changes during the next 12 months?
DIGITAL TRANSFORMATION IS BECOMING A KEY INITIATIVE FOR INNOVATIVE CRE TEAMS
This article was originally published here and is in a 5-part series throughout Q1 2023.
This segment focuses on technology and analytics.
Overarching Themes
- Most CRE teams leverage a combination of internal and service provider technology to comprise their overall technology, data and analytics landscape.
- CRE most commonly leverages data for strategic portfolio analysis, operational reporting and business-unit engagement.
- While fewer CRE teams currently use data for predictive analytics, digital transformation to achieve next-level value is becoming a major focus for forward-thinking CRE teams.
CRE technology strategy
The most common CRE technology strategy remains a hybrid approach, which combines both internal and external technology solutions. In the last 12 months, there has been a 9% increase in CRE teams accessing technology through their service provider/partner—27% versus 18% in 2021.
What statement best describes your CRE technology strategy?
