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.

Take that one step further, where you may have corporate employees and service provider employees working side by side in a co-working space, and it becomes nearly impossible (outside of the financial statements) to tell where the lines of “outsourcing” are drawn.

But outsourcing remains a key strategy for corporate real estate (CRE) executives, which is why CoreNet Global and Deloitte recently revisited their ongoing look at outsourcing trends for both end users and service providers in the profession. Here are some key findings: 

  • Extent of outsourcing has not changed dramatically over the last several years
    The extent of outsourcing has not changed significantly for the major CRE capabilities – Facilities Management, Lease Administration and Transaction Management continue to remain heavily outsourced while Strategic

Planning and Portfolio Management are less commonly given to a provider.

  • Key Performance Indicators (KPIs) are viewed differently by service providers and end users

End user respondents have a greater appetite for performance information and measures than service providers view as necessary.

  • Service providers face consistent as well as evolving challenges when it comes to outsourcing

While the majority of service providers face consistent challenges, increasing competition and finding the right talent have become more prominent than the pricing pressures noted in prior years.

  • There is a continued maturity taking place in the profession

Results of the survey reflect an ongoing maturity/evolution of the CRE profession, although there is still a limited consensus around the optimal service delivery model; the capabilities of service providers continue to grow, CRE end users have a wide array of service and contracting options to suit their business circumstances.