CoreNet Globalâ€™s recently released 2011 state-of-the-industry report on commercial real estate (CRE), there is good news to be found about 2010 and in the first quarter 2011. The focus this year was on fresh input regarding the global economic recovery, the state of CRE, technology and real estate, workplace innovation, the war for talent, and related topics.
â€śWe have successfully survived another challenging year within our sector, but this time the pendulum has shifted and expectations are high that brighter days are indeed ahead as we continue on into 2011,â€ť opined the reportâ€™s authors. â€śThe global economy is now almost 24 months into recovery, and most forecasts point to the growth momentum continuing, albeit at an uneven pace, as some regions and cities are recovering faster than others.â€ť
The document noted CREâ€™s evolving enterprise role as the global economy–and real estate end users–seek cost-effective opportunity amidst economic recovery. â€śReal estate stands as the second- or third-largest cost center for any enterprise, during the recession, executives in the CRE role faced a strategic mandate to reduce costs and better align with both the C-Suite and business units.â€ť
Successful fulfillment of this role, continued the reportâ€™s authors, â€śemphasized CREâ€™s importance as a lever of broader business functions, an increasingly important role that those in the industry need to maintain to further drive improved results both in terms of real estate and overall financial success.â€ť
Other key findings:
There is a â€śgreat deal of pent-up demandâ€ť for projects that had been deferred the past few years. â€śCapital that companies had been hoarding previously is now looking to be spent.â€ť
The new emerging markets companies are now looking at have a new acronym: CIVETS [Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa]. They have the potential to generate â€śthe same kind of results Brazil, Russia, India and China produced the past 10 years.â€ť
Instead of being a passive â€śorder taker,â€ť CRE must transform itself into â€śa proactive business partnerâ€ť as the function has the potential to be the â€śglueâ€ť and â€śmortarâ€ť for the business it supports.
Technology and social networks continue to be a â€ścommon, everyday featureâ€ť and â€śdriverâ€ť in the workplace; CRE professionals must quickly adapt to their presence.
The trend for employees to work â€śanywhere, anyplace and at anytimeâ€ť is gaining steam.