Based on a new survey by CBRE Group, Inc. of global corporate real estate executives finds growing concerns over the health of the global economy, workforce strategies and rising cost and speed of business are heavily influencing real estate decision-making for major corporations.
“The volatility of today’s global economy is challenging executives to align naturally long-term real estate initiatives with increasingly short-term corporate agendas,” said Karen Ellzey, executive managing director of consulting for CBRE Global Workplace Solutions. “Today’s real estate strategies have to focus on delivering ‘growth without growth’–expanding a corporation’s capabilities without spikes in capital investment or operational expense.”
More than 400 corporate real estate executives from around the world participated in the CBRE survey. Nearly half (49 percent) cited economic uncertainty as their greatest challenge, while 43 percent noted cost escalation as their greatest challenge.
Forty-eight percent projected a stable real estate footprint for this year. Seventy-nine percent stated that they are actively using space-efficiency initiatives–“saving in place”– to manage costs, combining ground-up workplace strategies with top-down cost management initiatives.