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Volume 14 (2024-25)
Each volume of Corporate Real Estate Journal consists of four 100-page issues published both in print and online.
The articles published in Volume 14 are listed below.
Volume 14 Number 2
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Editorial:
Simon Beckett, Publisher -
Case Study
A blueprint for great workplaces: Integrating brand identity, regional diversity and inclusive design
Don Watson, SVP Global Real Estate, Facilities, and EH&S, and Ronda Green, Director of Global Workplace Design and Strategy, Oracle
The Oracle Real Estate and Facilities (RE&F) mission is to provide inviting, inclusive, collaborative and technology-enriched work environments where everyone can thrive. Success in our mission helps create a workplace where everyone can do their best work without barriers and be inspired to go beyond what has been done before. RE&F are committed to empowering a diverse population by understanding the cultural richness of our workforce, removing barriers and continuously striving to create an inclusive work environment. This paper takes you on a journey through our process of defining a Universal Design (UD) programme within Oracle and how we continue to work every day at making improvements wherever we can. As we evaluate our workplace of the future, our focus is clear: integrating the Oracle brand alongside UD solutions is key to offering exceptional employee experiences.
Keywords: universal design; branding; global design; workplace strategy; workplace of the future; inclusive work environment -
Practice Papers
Transforming hybrid office management with an overarching dynamic delivery model
Iain Franklin, Managing Director, Consulting, JLL
This paper explores the evolving landscape of lease administration, prompted by shifts in labour markets, growing complexities of financial reporting for lease agreements and the emergence of robust lease management technology. Lease administration emerges as a critical business function, with a focus on managing lease data, ensuring accurate rent payments and navigating compliance and landlord relationships, while providing realtime reporting capability for business stakeholders. In addition, lease administrators transition from labour-intensive manual processes to a more analytical and technical approach. Given the altered environment in lease management requirements, tools and skill sets, now is an ideal juncture for companies to assess their current lease administration operating model, and the paper introduces a perfect assessment tool. The Lease Administration Framework, a proactive lease administration management system, highlights strategies and decisions for managing a company’s real estate portfolio while considering the use of in-house teams and outsourced service providers. The paper advocates for a tailored approach to be aligned with organisational needs, while emphasising the importance of evaluating talent, technology and risk tolerance in the decision-making process. By following the framework, corporate real estate (CRE) leaders can ensure financial prudence, gain the agility to allocate resources strategically, invest in growth initiatives and weather economic uncertainties.
Keywords: dynamic management; space utilisation; sustainability; demand patterns; change management; facilities management; flexible real estate; office design -
Market research for a volatile industrial sector: Actionable methods for occupiers
Mark Russo, Vice President, Industrial Research, J.C. Renshaw, Head of Supply Chain Consulting, Savills North America, and Alison Baumann, Director of Real Estate Intelligence, CompStak
The industrial market has undergone unprecedented upheaval over the past decade, especially during and after the COVID-19 pandemic. Industrial real estate has seen rapid shifts from undersupply to oversupply, causing pricing bubbles to form and burst quickly. While market research often adopts an investor or landlord perspective, this paper uniquely offers actionable methods from the occupier’s viewpoint. It aims to help corporate real estate (CRE) professionals evaluate their current facilities and leverage market conditions when acquiring new ones. By analysing key fundamentals — vacancy, rents, construction and absorption alongside lease comparable data and supply chain dynamics — readers will become educated consumers of market research, capable of appreciating nuances and asking the right questions when reviewing data and forecasts from brokerage or market research companies.
Keywords: industrial real estate; market research; demand forecasting; supply chain; lease comparables and effective rents; vacancy and availability metrics -
Unifying real estate facilities data in a single repository to improve data quality and drive more informed decisions
Rick Unruh, Group Manager, Asset Management Services, Akana, and Josh Lowe, Co-Founder and Chief Solutions Officer, AkitaBox
This paper addresses the critical issue of poor facilities data management within the real estate industry. Traditional data management strategies have led to outdated, inaccurate and siloed data — a situation with detrimental impacts on decision making, capital planning and building optimisation. The paper provides practical advice on transitioning to better data management, particularly by bringing all facilities data into a central, easily accessible management platform.
Keywords: data collection; data management; facilities data software; data management platform -
ESG for CRE? Impact of ESG on commercially leased real estate and considerations for landlords and tenants
Rebecca A. Davis, Partner, and Caroline E. Magee, Of Counsel, Arnall Golden Gregory
Environmental, social and corporate governance (ESG), although not universally defined, continues to drive commercial, political and investment decisions in nearly all areas of commerce. This includes leased commercial real estate (CRE), in which property owners and occupiers may have differing ESG considerations for the same property. In the US, commercial lessors and lessees find themselves navigating domestic and international pressure with respect to ESG in a context of increasing political polarisation around ESG in business decision making. In an effort to offer a practical and politically neutral approach to ESG in CRE, this paper describes the meaning and history of ESG, explores ESG trends in CRE, and focuses on tools and concepts to help navigate materiality concerns with respect to leased CRE, whether site-specific or portfolio-wide, to support CRE professionals in allocating property owner and occupier obligations, reducing risk and maximising long-term sustainable operations at commercial properties.
Keywords: ESG; sustainability; commercial leasing; building performance; risk management; energy efficiency; lease agreements -
US manufacturing resurgence: How site selectors can unlock the potential of US locations
Nicole Bennett, Executive Managing Director, Logistics and Industrial Co-Lead – Americas, and Ben Harris, Senior Managing Director, Client Solutioning and Strategy, Logistics and Industrial Services – Americas, Cushman & Wakefield
Over the past three years, disruptions to supply chains worldwide have been the norm, bringing the impacts of globalisation and the importance of well-functioning supply chains into sharper focus. As a result, businesses are proactively exploring new ways to diversify their supply chains, and in the US, a major component of diversification is manufacturing. In this paper, we explore the current trends of manufacturing real estate, including how companies are pursuing a data-driven selection process to identify the optimal site to locate, illustrated by a compelling case study. The US manufacturing market is resurgent, and many occupiers are evaluating the opportunity to establish or relocate their production facilities. They are navigating an ongoing challenge of labour shortages, high power demands of manufacturing and low vacancies in the sector overall. This paper presents a case study, Project Apex, to demonstrate how site selectors navigate this landscape with their clients. This step-by-step analysis reveals how 126 locations on the longlist were narrowed down to 16 locations for site visits and, ultimately, three finalists for the manufacturing client to review. The paper outlines best practices for site selectors during every phase of the project while considering the challenges and current landscape.
Keywords: manufacturing; logistics; reshoring; onshoring; site selection; supply chain -
Making hybrid work through an agile portfolio approach
Paul Swift, Head of Partnerships, Desana
Despite extreme headlines, flexibility and the appetite for hybrid and remote working does not mean the death of the office, but it certainly does shift the way companies use them. This paper explores the impact on the corporate real estate (CRE) landscape of the move towards hybrid and flexible working policies by unpacking changing employee practices and business requirements, and explaining why business leaders are moving, at scale, towards agile real estate portfolio models. Readers will leave with a better understanding of the changing market and how today’s business leaders are retaining talent, building happy and productive teams, and protecting business resources through the adoption of agile portfolio models that deliver for both business and people.
Keywords: agile; hybrid; workspace; distributed; corporate real estate; portfolio -
How can decarbonisation planning for existinga large offices create value and co-benefits for corporate occupiers and owners?
Amir Rezaei-Bazkiaei, Simulation & Analytics Team Lead, Cyclone Energy Group, and Sonny Masero, Managing Director, Global ESG, Hines
For Ivanhoé Cambridge, the global real estate group of CDPQ, and Hines, decarbonisation is not merely an environmental stance, it is an innovative approach to long-term real estate value. Through rigorous research, it is known that high-tier green buildings are truly the ones that stand out. They consistently perform better, attracting more occupants and ensuring sustainable financial returns. Stepping into an office that embodies green ideals is more than ever a necessity from the business standpoint — a dream in the making in places like Chicago, as the owner and management team embark on a research and analysis phase to better understand the implications of practical decarbonisation. Chicago is much more than a cultural hub; it is taking significant strides in urban sustainability. The team represented in this paper is leveraging the city’s momentum. The goal? To navigate the complexities of decarbonisation planning, however daunting it may sound. This paper sheds light on the approach taken in the journey of decarbonisation planning for two major Ivanhoé Cambridge assets in Chicago. The focus is to highlight opportunities rather than solutions and to offer a few examples of what has been successful, even though the implementation phase of the capital projects for these assets is nowhere near completion. The vision is laid out in the local context and from the vantage point of tenants, local energy sources and practical solutions at building level. At the end, a dash of colour is added to the numbers and strategies: visual storytelling. Translating intricate carbon data into comprehensive visuals brings clarity. As we embark on this path, each graph and chart becomes a pivotal chapter in our unfolding narrative toward realising decarbonisation across the entire portfolio.
Keywords: decarbonisation; existing buildings; cold climate; storytelling
Volume 14 Number 1
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Editorial:
Simon Beckett, Publisher -
Case Study
Creating dynamic environments for the hybrid work experience: A case study of repositioning the Cambridge Consultants Boston office
Adrienne Erdman, Director of Design Research, EwingCole, Gable Clarke, President of Interior Design and Partner, and Kaitlyn Gannon, Interior Designer, SGA
The COVID-19 pandemic accelerated the transition to hybrid work, leading to increased office vacancies globally. However, many companies grappled with the challenge of creating hybrid work models that provide staff-desired flexibility while enabling effective social connection and appropriately using physical space. The employee experience is multifaceted, involving interpersonal, occupational, physical and technological factors. Human-centred design strategies are essential for fostering well-being, satisfaction and organisational performance. Investing in workplace design fosters employee satisfaction, productivity and talent retention; influences client interactions; and strengthens the connection between employees and organisational identity. The case study detailed herein focuses on Cambridge Consultants, a research and development consulting company, navigating this transition. The company underwent a thorough assessment from autumn 2021 to autumn 2022 to develop an ideal space for their new Boston-based North American office, emphasising participatory design to support the evolving demands of the hybrid work model. The relocation process involved an extensive discovery phase, including surveys, focus groups and envisioning sessions to gather insights from staff. The design development phase further engaged staff, seeking feedback on various design concepts, finishes and layouts. The company’s commitment to inclusivity and transparency extended to change management efforts, which included shifting from assigned desks to a hotelling model. The new office design prioritised innovation, connectedness, flexibility and belonging, aiming to fulfil the staff’s vision for a dynamic and inclusive workspace. Features such as an inviting lobby, staff and project showcases, variable furniture and room options and interactive walls contributed to the vision. A post-occupancy survey in autumn 2023 revealed overall positive perceptions of the new office and considered it conducive to cross-collaboration and creativity, but highlighted challenges such as setting up hotelling desks to meet personal preferences and transit-related factors affecting office attendance. The case study emphasises the importance of ongoing staff engagement, usability assessments, and a holistic understanding of real-world context. Future research is suggested to analyse the impact of hybrid work setups on operational performance metrics and the relationships between commuting complexity and perceived value in going to the office.
Keywords: interior design; hybrid work; office design; commercial real estate; flexible work arrangements; workplace; technological integrations; right-sizing; human-centred design; inclusive design -
Practice Papers
More than one way to peel an orange: A fresh approach to building an effective lease administration function
Tessa Mellinger, Principal, Lease Administration Evolution
This paper explores the evolving landscape of lease administration, prompted by shifts in labour markets, growing complexities of financial reporting for lease agreements and the emergence of robust lease management technology. Lease administration emerges as a critical business function, with a focus on managing lease data, ensuring accurate rent payments and navigating compliance and landlord relationships, while providing realtime reporting capability for business stakeholders. In addition, lease administrators transition from labour-intensive manual processes to a more analytical and technical approach. Given the altered environment in lease management requirements, tools and skill sets, now is an ideal juncture for companies to assess their current lease administration operating model, and the paper introduces a perfect assessment tool. The Lease Administration Framework, a proactive lease administration management system, highlights strategies and decisions for managing a company’s real estate portfolio while considering the use of in-house teams and outsourced service providers. The paper advocates for a tailored approach to be aligned with organisational needs, while emphasising the importance of evaluating talent, technology and risk tolerance in the decision-making process. By following the framework, corporate real estate (CRE) leaders can ensure financial prudence, gain the agility to allocate resources strategically, invest in growth initiatives and weather economic uncertainties.
Keywords: lease management; process improvement; outsourcing; workload management; process documentation -
Piloting: Adopting a prototype mindset for today’s workplace
Carolyn Cirillo, Global Research and Insights, and Jason Rosenblatt, Workplace Designer, MillerKnoll
This paper is designed to help corporate real estate (CRE) leaders adopt a ‘learning by doing’ approach to workplace strategy and design to improve employee experiences and organisational outcomes. While the COVID-19 pandemic has brought lingering uncertainty relative to the future of the physical office, it has also spawned a spirit of openness to change and a willingness to experiment. In this paper, we discuss ways to learn by doing at various scales, with a focus on the largest-scale methodology: piloting. We show how pilots provide a low-risk approach to introduce flexible work policies and new ways of working within a sustainable financial model. We demonstrate that by generating data and insights, pilots can drive plans to scale and inform future space types within the larger real estate portfolio. This paper draws upon years of research and exploration conducted by MillerKnoll brands and our customers on pilots of varied types and scales. It provides a roadmap to implement a pilot, including questions to ask, selection criteria for teams, and locations and methodologies to measure success. Case studies illustrate various approaches and results achieved.
Keywords: pilot; participatory design; prototype mindset; hybrid work; workplace strategy; flexible work -
How AI and ML can help reduce energy usage and carbon emissions in buildings
Dani Stern, Senior Director and Head of Product, Commercial Real Estate, Honeywell Building Automation
Commercial buildings play a significant role in global energy consumption and carbon emissions, making their sustainability imperative. This paper explores how artificial intelligence (AI) and machine learning (ML) technologies offer innovative solutions to reduce energy usage and carbon footprint in buildings. By leveraging AI and ML algorithms, building automation systems can optimise energy consumption, enhance occupant comfort and predict future energy demands. The integration of AI and ML into existing building controls requires managing and integrating diverse data sources, followed by cloud-based processing for advanced analytics. The benefits include increased energy efficiency, reduced utility costs and improved occupant experience. Readers will gain insights into: 1) understanding AI and ML’s role in optimising energy usage and reducing carbon emissions in buildings; 2) integrating AI and ML into building automation systems for predictive energy management; 3) overcoming challenges in data integration and cybersecurity for effective implementation; 4) leveraging AI-driven analytics for real-time monitoring and decision making; and 5) achieving sustainability goals and enhancing building resilience through AI-powered solutions. By implementing AI and ML technologies, building owners and operators can not only improve energy efficiency but also strengthen their competitive edge, attract environmentally conscious tenants and contribute to global sustainability efforts.
Keywords: artificial intelligence; machine learning; energy efficiency; building automation; sustainability; occupant comfort -
Data synergy in integrated facilities management: The key to clearer insights, smarter decisions and optimised operations
Chris Lilly, Senior Vice President, Technology, ESFM, Compass Group
Today’s corporate real estate landscape has evolved within the digital age. Operations, including hard and soft services critical to a facility’s infrastructure and occupant experience, can now produce vast amounts of data to better adapt, generate reports and optimise resources. Many facilities, however, are not reaping the rewards of technological advancements because of solutions operating in silos. Data is being cobbled from disparate streams, leading to inefficiencies and a burden on operational leadership. This paper explains the paradox within integrated facilities management (IFM), wherein five or ten standalone applications that do not interact with each other are often used to perform vertical functions. By looking at how other industries have approached similar challenges, including the emergence of enterprise resource planning, standalone buildings, and those within a corporate real estate portfolio, can integrate technology solutions and processes for a more synergised approach. This move can lead to clearer data both at unit and above-unit levels. Combined with the power of artificial intelligence (AI) and machine learning (ML), infinite variables can be incorporated into processes via smart technology to maximise the impact of resources, including labour, critical systems and infrastructure. From data-driven cleaning to asset management, integration opportunities abound. Whether enhancing existing platforms or seeking new technology solutions to broaden functionality, it is critical to understand the power of synergy.
Keywords: technology; integration; software; building systems; data-driven decision making; AI -
Agile technology planning: Embracing change to improve the hybrid workplace experience
Craig Park, Director of Digital Experience Design, Associate Principal, Clark & Enersen
In the evolving landscape of hybrid work environments, organisations face the challenges of bridging the gap between remote and in-office employees and attracting a younger workforce while adapting to the rapid pace of technological change. This paper presents a comprehensive strategy for creating effective hybrid workspaces prioritising connectivity, collaboration and digital equity. Central to this strategy is integrating appreciative inquiry principles with agile process management tools, aiming to foster a culture of innovation and inclusion. The demographic shift towards a younger, tech-savvy workforce, alongside the continuous advancement in communication technologies, necessitates a new approach to workplace design and technology integration. The paper outlines a roadmap for organisations to navigate the complexities of the hybrid work model, ensuring a connected and empowered workforce.
Keywords: hybrid work; Integrated technology; connectivity; communication; collaboration; digital equity; inclusion; appreciative inquiry; agile process management; demographic shift; digital natives; native analogues; technological change; SOAR planning