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Report reveals a “pressure cooker” of expectations to maximise value from real estate in Asia Pacific
SINGAPORE, 24 June 2015 – Mounting C-suite demands for productivity are creating a "pressure cooker" of expectations for corporate real estate (CRE) teams, reveals a new JLL global report.
Tracking insights from 544 CRE executives worldwide, 39 per cent of whom are in Asia Pacific, the survey details the C-suite's growing recognition of CRE and the corresponding pressure on CRE teams.
"Today in Asia Pacific C-suite executives have an unrelenting focus on wringing the maximum productivity out of their office space. In response, CRE executives must use increasingly sophisticated data and analytics to make their facilities portfolios more efficient," says Jordi Martin, JLL CEO of Corporate Solutions, Asia Pacific.
"Speaking to CRE professionals in the region, we've found that the most pressing challenge they are facing is the need to balance cost reduction with value creation. But while we are seeing that the CRE function is rapidly maturing, its transformation from tactical manager to trusted advisor is far from complete," he adds.
JLL's third biennial Global Corporate Real Estate Trends report shows that CRE teams are even more challenged to transform their role from order takers to order makers today than in the firm's last survey in 2013. More than half of respondents report even greater C-suite expectations in nearly every category.
A concerning 15 per cent say that they are poorly equipped to meet the increased demands—a proportion that has doubled since 2013. Meanwhile, the percentage of those who say they are "well-equipped" has fallen from 28 per cent to 17 per cent. Lack of access to data and analytics was the top-rated constraint limiting further development of the CRE function.
Top C-suite demands to CRE teams include:
According to Mr Martin, the most effective means to transform the CRE function in a business is to prioritise people and people skills. This combined with a strong data and analytics platform will facilitate smarter corporate real estate decisions.
"The key both in Asia and globally is a business-aligned approach that prioritises data science, proactive leadership and predictive analytics," says Mr Martin. "Without this shift, CRE teams will continue with 'business as usual' instead of breaking through to the next level."
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