Trends and Issues in Corporate Real Estate Eric Bowles CoreNet Global Director of Global Research

2 Agenda  CoreNet Global Overview  CoRE 2010  Workplace Trends  Future Research and Issues

3 CoreNet Global  Professional association for the corporate real estate industry  Geography ·Global membership of 7000 ·70% in North America ·55 chapters – United Kingdom, Germany, Australia, China, India, etc.  Profile ·Senior corporate real estate executives, direct reports and senior leaders ·Global 2000 companies ·Providers of services to corporate real estate

4 CoreNet Global Value to Members  Networking ·Summits ·Chapters / Chapter Events ·Discovery Forums ·Communities  Education and Knowledge ·Summits ·Chapters / Chapter Events ·Discovery Forums ·Communities ·EDP / SLR Professional Educational Programs ·Leader magazine ·Knowledge Center Online ·Research / Expert Surveys

5  How will KI get involved with CoreNet?

6 How will KI penetrate CoreNet and the CoreNet Membership?  Increased Membership  Sponsorship  Learning Partnership  Research Partnership

CoRE 2010: Enabling Work in a Networked World

8 2010: Forecast for Work  The 2010 workforce is: ·Culturally diverse ·Younger and older ·More independent: no guaranteed employment, benefits or future affiliation  The Work Environment is CONNECTIVITY  In 2010, work itself is mobile, not just workers  Corporate Real Estate’s new role is Workspace Strategist

9 2010: A Changing Business Environment

: Transition toward a Networked Virtual Organization

: Moving from Shared Services to Workplace Strategist TODAY2010

: Changing Where Work is Done

13  How do I apply this information?

CoRE 2010: Context and Progress to date

15 Breakdown of facilities costs

16 Trends in workplace objectives

17 We discovered that 70% of our knowledge-workers were already mobile before beginning our initiative Time of day – avg. over 2 week observation period % Seats Occupied  40+% of our seats are vacant every day  an additional 30% are unoccupied during the course of the day 40% Vacant 30% Unoccupied, yet sign of life

18 New Workplace Choices

19 Capital One: We let the people influence what we do associates choose work style MobileTeleworkerResidentAnchorExecutive Work Style Technology n/a Manager Choice Wireless G Laptop & IM Cell Phone Blackberry Home Broadband VPN Softphone Wireless Headset Home Wireless Router / MFD assigned workstationhome officeunassignedchoice Yes No Yes No Yes No Yes Desk YOU CHOOSE!!!

20 Current Workplace Features Sharing of desks still not widespread Major barrier to improved utilization

21 Current Workplace Features Approx. what percentage of employees routinely work from home for all or part of the working week?  Home working is still not widespread  48% of CRE departments do not support home working

22  How do I apply this information?

: Measuring Efficiency and Effectiveness “You Can’t Manage What You Don’t Measure” or “You Can’t Get Funding Without a Business Case”

24 How is effectiveness measured?

Top Issues for Corporate Real Estate January 2007

26 Industry Roundtable: Top Issues for 2007  Talent – For the business and CRE  Sustainability – When to act and what to do  Workplace – Improving efficiency and effectiveness  Sourcing – RFP complexity  Cost Pressure – Always on the list  Flexibility and Agility – CRE as a catalyst or obstacle  Globalization – Delivering CRE globally  CRM – Business advisor and strategist  Governance – The next tier of SOX

CoreNet Global Applied Research Center Eric Bowles Director of Global Research