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Corenet Global Survey: How 9/11 Change The Workplace #crechat #cre

As we approach, the 10^th anniversary of the 9/11 tragedy, Corenet Global has released a survey on the impact the 9/11 attacks had on the corporate workplace in the US and around the world.

 Events of 9/11 Changed the Workplace

CoreNet Global Survey: Companies now employ a variety risk- management measures emphasizing business continuity

ATLANTA, GA (6 September, 2011) – CoreNet Global, the world’s leading association of corporate real estate (CRE) and workplace professionals, today released the results of a survey which found that the tragic events of 9/11 had a permanent effect on the workplace.

Three-fourths of the respondents believe that companies in general are as vigilant about security measures today as they were in the aftermath of 9/11.

The focus on risk management as an intrinsic strategic planning and management function also grew stronger.

“Business disruption planning became a common element for many corporate workplace and asset managers as a result of 9/11,” said Richard Kadzis, Editor of LEADER Magazine and Vice President, Strategic Communications for CoreNet Global. “Elements of this planning include mobile work plans for employees, facility collocation policies, redundant facilities, energy back up, business continuity plans, and off-site data storage.”

“While technology advances and the 2009 recession would have facilitated the trend toward mobile work before then, 9/11 demonstrated the value of so-called ‘distributed work,’ in which employees are contributing toward the final product from various locations, including the home,” Kadzis said. “Before 9/11, the scale of flexible workplace strategies was limited more to companies we used to call the ‘leading-edge’ adopters.”

Some respondents in the survey indicated a reluctance to lease space in high-rise office buildings, yet nearly all (84 percent) believed that the redevelopment of the World Trade Center site in Manhattan will be a commercial success, and more than 40 percent said that they would consider leasing space at the site. 

 Read more: http://www.corenetglobal.org/files/home/info_center/global_press_releases/pdf/pr110906_post911Workplace.pdf

 

Corporate Real Estate - Wikipedia, the free encyclopedia

Corporate Real Estate

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Corporate real estate is a term used to describe the real property held and/or used by a business enterprise or organization for its own operational purposes. A corporate real estate portfolio typically includes a corporate headquarters and a number of branch offices, and perhaps also various manufacturing and retail sites.^[1]

Contents [hide] 1 Concept 2 See also 3 References 4 External links

[edit] Concept

Corporate real estate may also describe the functional practice, department, or profession that is concerned with the planning, acquisition, management, and administration of real property on behalf of a company. Generally, Corporate real estate professionals approach the real estate market from the buy-side, or demand perspective, similar to corporate purchasing or procurement. As such, they seek to contain costs, and may benefit from economic environments that are described by most as "weak".^[2]

Although closely related to facilities management and property management, Corporate real estate as a concept is usually broader in corporate functional scope but more narrow within the real estate sector. For instance, Corporate Real Estate professionals (or departments) typically dedicate greater emphasis and time on multi-site long-range planning (often called "portfolio planning" or "strategic planning"). However, Corporate real estate is almost exclusively focused on commercial properties types (mostly office, with industrial and retail depending on the company); residential properties are rare in a corporate portfolio.^[1]

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via en.wikipedia.org

FM outsourcing to pick up pace in 2012 | FM World – the BIFM’s Facilities Management magazine

Growth in the FM corporate outsourcing market is expected from 2012 onward, but will be slow and in line with construction projects being finished.

According to the latest FM outsourcing report from AMA Research, “Maturity in the corporate FM market makes it heavily dependent upon the economic climate.”

“As a result, the market is expected to exhibit some stabilisation and subsequent growth over the short to medium term, recovering only slowly from 2012 as construction activity improves and new projects reach completion.”

The report, Facilities management outsourcing: corporate sector market, 2011-15, focuses on commercial offices, retail, entertainment and leisure, manufacturing and warehousing, energy and utilities, and privatised transport services.

via www.fm-world.co.uk

Principal Financial Group Outsources Global Property Management to Jones Lang LaSalle

Joining a growing list of corporations that are moving their real estate operations to a third-party provider, financial services firm Principal Financial Group (NYSE: PFG) today outsourced facilities management for its 4.3 million sq. ft. of office space to Jones Lang LaSalle.

The five-year contract includes Principal’s 2.4 million sq. ft. corporate campus in Des Moines and more than 150 owned and leased field offices across the United States and in more than 15 countries throughout Asia, Australia, Europe and Latin America.

The deal is remarkable for the range of services it will bring into play, says Richard McBlaine, international director at Jones Lang LaSalle. “They wanted a company that could bring a complete suite of integrated services, everything from real estate consulting through transactions, project management, facility management, occupancy planning — basically the entire suite of services that we provide to occupiers.”

via nreionline.com

GlobeSt.com - The Debt Deal Viewed Through Real Estate';s Prism - Daily News Article

WASHINGTON, DC-So it happened. Within hours of an apparent default, Congress came together and delivered a bill that would raise the debt ceiling and work towards reducing spending.

via www.globest.com

Schumpeter: The trouble with outsourcing | The Economist

A philosophical discussion in the outsourcing industry.  Is outsourcing a good thing? Will the 30 year trend toward outsourcing and globalization continue? In the July 30, 2011 issue of The Economist, a column explores these topics. Although the author appears to confuse off-shoring with outsourcing, they makes a valid point. Outsourcing can go well, it can go wrong and it needs to be executed properly.

Some companies, such as Boeing, are bringing more work back in-house, in the jargon. But the business logic behind outsourcing remains compelling, so long as it is done right. Many tasks are peripheral to a firm’s core business and can be done better and more cheaply by specialists. Cleaning is an obvious example; many back-office jobs also fit the bill. Outsourcing firms offer labour arbitrage, using cheap Indians to enter data rather than expensive Swedes. They can offer economies of scale, too. TPI points out that, for all the problems in America, outsourcing is continuing to grow in emerging markets and, more surprisingly, in Europe, where Germany and France are late converts to the idea.

Companies are rethinking outsourcing, rather than jettisoning it. They are dumping huge long-term deals in favour of smaller, less rigid ones. The annualised value of “mega-relationships” worth $100m or more a year fell by 62% this year compared with last. Companies are forming relationships with several outsourcers, rather than putting all their eggs in few baskets. They are signing shorter contracts, too. But still, they need to think harder about what is their core business, and what is peripheral. And above all, newspaper editors need to say no to the temptation to outsource business columns to cheaper, hungrier writers.

via www.economist.com

Increase in CRE Outsourcing Demand - GlobeSt.com Daily News Article

The following is from today's GlobeSt.com article regarding the new HSBC outsourcing contract. Robert Carr of GlobeSt was interested in discussing trends in Outsourcing.

Bryan Jacobs with JLL tells GlobeSt.com that the bidding process started last summer. “It’s been a significant amount of work for all sides,” he says. “We’re going to specifically evaluate HSBC’s portfolio to see how they can best serve their customers. We’ll also be looking at productivity, and how they can be more efficient with space.”

He says that providing corporate commercial real estate outsourcing services has been picking up considerably since the recent downturn. “When we went into the recession, a lot of people sat on the fence, concerned about long-term decisions. In the past year, companies have begun to think about what they’re going to be doing over the next five to 10 years, and there’s been significant requests for proposal work,” Jacobs says.

See More on: www.globest.com

How To Build A World Class Vendor Management Organization - EMS / Sourcing Interests Group

 

The Sourcing Interest Group is one the leading organization in world for the Sourcing and Outsourcing Industry. Expense Management Solutions is a global leader in sourcing and outsourcing advisory. The following is a recent article on vendor management.

How To Build A World Class Vendor Management Organization

Michele Flynn, President, Expense Management Solutions

This summer, the driving topic for many organizations seems to be “how to build a world class vendor management organization” – as we all know – it is often much easier to manage “one” thing at a time.  In reality, in order to be effective in managing vendors across your enterprise, you need to be able to manage multiple vendors, all the time.  Your first reaction may well be – that’s impossible.  While I will not be able to address every issue that will come up, this article is intended to lay out a roadmap that will help you to get started if you are at the early stages, validate and potentially expand the breadth of your program if you are in development and perhaps even give you some things to consider if you are at the more advanced stage of implementation.

In a nutshell, effective governance or vendor management - on a one-off basis - is all about how to ensure that the value you achieve with your vendor equals or exceeds all that you expected when you initiated the relationship.  (If you would like to hear more about how to implement good vendor management on a point to point basis, click here to listen to a 60 minute webinar I presented in May.)  A world class vendor management organization takes vendor management to the next level.  Why do you need to worry about building a vendor management organization (VMO)?  For years most of us have addressed “vendor management” in one of three ways.  Either we relied upon the business owners who are buying the services to ensure that the vendor performed as required, we focused our energies on the top strategic relationships, or we relied upon the contract to cover the critical issues and assumed the rest would be resolved through periodic sourcing initiatives.  So why are more and more people thinking that the time has come to implement a Vendor Management Organization?  As we work with our clients, we find there are three common drivers:

1. Increasing complexity of relationships,
2. Increasing pressure from regulators, consumers and customers, and
3. A phenomenal increase in the volume of activity that is done outside the four walls of organizations.

see more on:   via www.sig.org

Australian group UGL interest threatens to derail DTZ's merger talks - Telegraph

UGL, which is being advised by Goldman Sachs in Australia, is threatening an attempt by DTZ's majority shareholder Saint George Participations (SGP) to take the business private and merge it with BNP Paribas Real Estate.

DTZ confirmed last month that it "continues to review approaches of interest in the company's shares" alongside the SGP talks.

However, a source close to the negotiations said UGL and other potential rival bidders are being frustrated by SGP, which owns 55pc of DTZ. They allege that SGP is blocking the property agent from entering into detailed discussions with other parties and providing access to the data room.

SGP, a family-run French group, has three directors on the board on the UK property company.

DTZ shares closed at 44½p on Friday, valuing the company at £120m.

via www.telegraph.co.uk

GlobeSt.com - JLL Reports 24% Revenue Hike in Q2 - Daily News Article

CHICAGO-Jones Lang LaSalle had a strong second quarter, according to executives reporting Q2 results on a conference call Wednesday. Revenue rose 24% to $845 million compared to second quarter 2010, and net income rose to $44 million compared with $32 million a year ago.

via www.globest.com