CREJ - Office Properties Quarterly - June 2016
Access to talent is the primary decision criteria for today’s corporate real estate decision makers, while managing occupancy cost is the second critical factor, according to our 2015/16 Americas Occupier Survey. The primacy of talent is a significant change from the past, where cost was the top factor. In the survey of 229 corporate real estate executives, 50 percent cited availability of talent as the factor that drove their office space site selection decisions, with cost factoring in heavily only after the market decision was made. Only 31 percent of the executives surveyed said cost drove their office market location decisions. Workplace strategy is dominating the corporate real estate agenda because of the need to attract and retain talent and, driven by escalating real estate cost, the need to increase the efficiency of and the bottom-line contribution of an investment in office space. Faced with a workforce that is more generationally and ethnically diverse, as well as more selective in choosing where they want to live and work, corporate real estate directors are challenged to create a workplace that will provide an edge over their competitors in attracting the best talent to their organizations. The most sought-after talent places great importance on the ability to connect with colleagues and the resources needed to be effective in their jobs, as well as the ability to work when and where they choose. Both of these require giving employees seamless access to the best technology available, on the device and platform they prefer, anywhere they choose to work. In addition, they value the ability to collaborate and socialize with co-workers, and they seek workplaces built to foster collaboration and community. “It’s not surprising that employee engagement has become a strategic priority of corporate real estate executives, given the huge role the workplace plays in how we build and maintain relationships,” said Georgia Collins, senior managing director of workplace strategy with CBRE. “Even though we can work virtually from anywhere, many people still prefer to meet and connect. Organizations must work to make their offices a destination – a place where a diverse group of individuals wants to be.” The need to attract and retain top talent is impacting more than just real estate location decisions. Talent and real estate are two of the largest cost categories for companies, and corporate real estate executives are focusing on how real estate can enhance their organization’s performance. By creating high-performance workplaces, companies can attract the best talent, maximize productivity, increase engagement and community, and enhance their corporate culture. With this combination, a company’s real estate can be converted from a passive and costly necessity to an active contributor to a company’s success that drives productivity, profits and entity value. Workplace Strategy Understanding the how, what, where and why of the way people work is the foundation of creating a high-performance workplace to attract the talent needed to compete effectively in the market. To accomplish the goal, corporate real estate executives need empirical data that will allow them to design, build and equip spaces to enhance every aspect of their employees’ experience. Workplace strategy differs from the traditional design process because it is driven by data rather than tradition. CBRE is a leading provider of workplace strategy services through the workplace strategy team, led by Lenny Beaudoin and Georgia Collins. One of the main reasons for this expertise is because we have used our own company and talent as a living laboratory. Through an in-depth analysis of how people work, we created a workplace strategy initiative called Workplace360, which is designed to provide: • The optimal mix of private and collaborative space. • A wide variety of space types to fit different work styles. • The technology required to enable collaboration and enhance productivity. • Spaces that foster community, engagement with the brand and pride. Workplace360 is implemented in more than 30 of the company’s offices worldwide, under the strategic leadership of the workplace strategy team, most recently here in Denver. At the time this article was written, we have been in our new environment for just over one month, and the impact on the people in the Denver office is profound. We are working together more effectively than in the past, leveraging each other’s knowledge and expertise to create opportunity. By leveraging lessons learned, companies can find and create their own unique work environments. In doing so, companies can transform their real estate from an ineffective asset to a powerful tool to attract and retain top talent and achieve a competitive advantage for their business.