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THOUGHT LEADERSHIP
 New Report Highlights a Critical Discipline for Uncertain Times
As the global economy tries to find equilibrium, and companies race to react to new market conditions, corporate real estate departments are working overtime to develop plans to reduce their portfolio footprint and related occupancy costs. A new white paper from CBRE addresses the important topic of how sophisticated portfolio management planning can better equip real estate executives to respond to today’s changing environment.
In 2008, CBRE, in concert with professional real estate association CoreNet, convened a consortium of corporate real estate executives who are leading their organizations toward increased focus and investment in strategic portfolio planning. The consortium conducted a survey of the current state of portfolio planning to understand how it has evolved over the past 10 years, and identified emerging trends, challenges and needs for improving CRE portfolio management. This white paper addresses the research findings and conclusions.
"We hope this research will provide inspiration and support for corporate real estate leaders challenged by today’s environment," said Sven Pole, Senior Managing Director with CBRE’s Global Corporate Services group. "We believe most corporate real estate departments under-invest in portfolio planning, and that significant opportunities can be realized by applying greater focus on discipline."
To view the white paper, please click here.
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Sustainability Measurement Tools for Property Still a Little Green?
The role of real estate is increasingly prominent in the wider debate on climate change. The desire to be "green," or to be perceived as such, is often led by a marketing agenda, but investors and developers will only invest in green practices if they make good commercial sense.
CBRE’s report from EMEA Research, Who Pays for Green? The Economics of Sustainable Buildings, reviews the main measurement tools for assessing a building’s environmental credentials; examines evidence on the production cost and rental profiles of green buildings against conventional ones; and provides some indicators of the achievable cost savings.
To view the white paper, please click here.
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When Companies Combine: Optimizing Physical and Human Capital Post Merger
After a merger announcement, companies are left with myriad questions regarding implementation and integration. Although initial information has been gathered during the acquisition decision and due diligence process, it is often after this short and chaotic period that the real research, analysis and decisions begin.
To view the white paper, please click here.
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Driving an Aggressive Occupancy Cost-Reduction Program
In a contracting economy, an aggressive occupancy cost-reduction program can translate into tens of millions of dollars in lower expenses—and mean the difference between survival and success. This white paper addresses proven techniques to reduce occupancy costs that can be applied to your portfolio in these tough economic times.
To view the white paper, please click here.
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CBRE PERSPECTIVE
Occupier Opportunities Emerge as Rent and Supply Conditions Change Across Europe's Office Market
Occupiers in the European office market are experiencing increased lease flexibility, greater choice of premises and greater incentives, according to the latest research by CBRE.
The report reveals that tenants are benefiting from current decreases in leasing activity and the subsequent pressure landlords face to preserve cash flows and maintain capital values. Landlord flexibility has become essential as take-up across the main markets in Western Europe in 2008 declined to levels seen in 2004 and 2005.
Occupiers are also benefiting from a decrease in office rents across Europe, with average rents declining by 2.5% in the EU-27 during fourth quarter 2008.
Matthew Pullen, head of CBRE’s Global Corporate Services in EMEA, said, "We anticipate there will be pockets of new leasing activity as opportunistic occupiers will move to cheaper buildings or further consolidate their portfolio by taking additional space in an existing location. Other tenants will leverage their improved negotiating positions to upgrade office premises, securing attractive terms on buildings previously beyond their reach."
The CBRE EU-27 vacancy rate index has risen steadily from 6.7% in first quarter 2008 to 7.5% by year end. Reduced investment in Europe’s emerging markets has brought the long-term stability of some cities into question, as reduced foreign demand and restricted local demand become insufficient to sustain growth. However, this supply is likely to present offshoring opportunities to organizations as they pursue cost-saving targets. Further increases in the vacancy rate are expected in the first half of 2009, partly due to a rise in the supply of subleased space.
The delivery of schemes initiated during recent years will continue through 2009 in many key cities, and despite an expected 20% drop in completions in 2010, occupiers will be provided with a greater choice of good-quality office space this year.
CBRE believes that the real winners coming out of 2009 will be corporate occupiers who influence further changes in their business cultures via alternative workplace strategies, more robust planning tools and innovative approaches to managing occupancy costs through the building lifecycle.
For more information, please click here.
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