Real Estate and Property Digital Revolution International Perspectives June 2018 Game Changers of Industry Smart Workplaces, BIM and IoT are set to revolutionize the commercial real estate industry

Predictive Top 3 Analytic Wayfinding 71% Companies plan to Workplace Tools, 23% Apps, 42% Technologies Smart 63% increase investment in Planned to be Workplace Sensors to Flexible workspace users real estate technology Implemented Monitor report that their workspaces by Most Workspace positively affect the ways Companies Occupancy, 35% they engage in their work

Reduced Errors and Omissions 41% Construction Collaborating With Owners/Design Firms 35% Benefits Enhancing Your Organization's Image Building companies in the 32% of BIM Reducing Rework 31% Information 61% world used BIM on (% Reduced Construction Cost 23% Modeling a majority of their companies) Better Cost Control/Predictability 21% projects in 2017 Marketing New Business 19% Reducing Overall Project Duration 19%

▪ Outsourcing Evolution ▪ Managed Workspace ▪ Integrated Services And Co-Working Was the average Trends in Facility ▪ The Multi-Generational ▪ Personalization 34% return on investment Facility Management Workplace ▪ The Smart Workplace from IoT in 2016 Management ▪ Wellness ▪ Data Driven Decision-Making ▪ Collaboration ▪ The Rise of The Robots

1 Current Workplace Layout & Major Drivers of the Future

Overall Workplace Layout by Countries

100% 14% 18% Data-Driven Wayfinding & 90% 23% 22% 23% 27% 24% 32% 32% Design Reservation 36% 80% 39% 37% 40% 40% 38% 54% 70% 10% 21% 25% Biometrics 11% 26% 36% Big Data 60% 28% 49% Elements 8% 14% 16% 32% 50% 20% 24% 28% of Next Generation 40% 19% Smart Workspace Voice UI 30% 63% 57% 56% Buildings 53% 53% 51% 49% 48% 46% 44% 41% 20% 38% 37% 37% 36% Fluid 27% Responsive 10% Communi- Environments cations 0%

Combination of Open Plan and Individual Offices Open Plan Indiavidual Offices

2 IoT - The Next Game Changer Companies across the globe are stepping ahead to incorporate IoT

Potential Economic Impact of IoT (2025) Investments in IoT by Companies by Country (USD Mn)

Home Offices 2015 2018E 4% 2% Vehicles 200 179 6%

Worksites Factories 160 138 7% 33% 123 113 120 107 107 Outside 96 81 86 81 80 9% 71 80 66 69 47 Retail 40 23 27 25 10% 2 5 Human Cities 0 23% 17% US Canada UK Germany France Japan Australia India Brazil Mexico Total: USD 7.5 Trillion

Transformations 56% 78% 73% 82% Increase in Cost Improved Increase in Due to IoT Business Savings Customer Workplace (% Companies) Efficiency Experience Productivity

3 Smart Workplace Trends Smart Workplaces will be commonplaces in the future Companies Planning To Increase Technology That Companies Plan Investment In Real Estate Technology to Implement By 2021

Wayfinding Apps 63% Sensors to Monitor Workspace Occupancy 47% EMEA 50% Virtual/Augmented Reality 43% Energy Management Controls 40% Personal Environment Control Systems 39%

Predictive Analysis in Asset/Portfolio Management 62% Wayfinding Apps 59% Americas 62% Sensors to Monitor Workspace Occupancy 48% Advanced Technology to Communicate Virtually 41% Virtual/Augmented Reality 34%

Wayfinding Apps 45% Sensors to Monitor Workspace Occupancy 42% APAC 78% Apps for Meeting Room Booking 38% Predictive Analytics Tools 30% Upgraded Display Facilities in Meeting Rooms 30%

4 Flexible Workplace – The Evolution of Working About 67% of companies globally are choosing flexible workspace as a long-term workspace solution What Drives Employee Satisfaction? ▪ 65% companies anticipate presence ▪ 44% companies anticipate in co-working space by 2020 presence in co-working ▪ 86% companies are reinventing or 49% 44% 32% space by 2020 adapting their workplace standards ▪ 72% companies prefer with the goal of employee wellness certified buildings Flexible Working Public Transport Connectivity satisfaction

47% 45% 31% EMEA Indoor Provision of Flexible Environmental Quality Amenities Workspace Americas Growth in Flexible Workspace Market (2016 to 2017) APAC 12% Chicago 13% Dubai 15% Los Angeles 15% Hong Kong 16% 16% San Francisco 17% 17% Abu Dhabi 18% Sydney 19% ▪ 41% companies anticipate presence Tokyo 20% in business incubator space by 2020 21% Singapore 22% ▪ 53% plan to implement activity-based New York 24% working to boost connectivity and Melbourne 27% collaboration Source: Instant Group, CBRE, Condeco

5 Building Information Modeling With 61% construction companies using BIM on majority of their projects, BIM is transforming the design and construction process around the globe

BIM Adoption Contractors at High/Very High BIM Implementation Levels

100% BIM Implementation Level Proficient BIM Users 82% 82% 80% 73% 75% 71% 80% 65% 56% 60% 56% 60% 46%46% 54% Canada 40% 66% UK 20% 52% south Korea 0% 72% North Europe Asia Oceania Middle South 71% Germany America East/Africa America 79% France 43% US Japan Percentage Contractors in Each BIM Engagement Level

High Medium Low 73% Brazil 71% 100% 3% 6% 13% Australia 17% 16% 22% 28% 80% 44% 31% 52% 44% 33% 50% 60% 42% 30% 19% 57% 31% New Zealand 40% 36% 54% 55% 20% 38% 42% 45% 48% 50% 21% 27% 0%

Source: McGraw Hill Construction Survey, NBS Survey

6 Facility Management Technology is increasingly having greater relevance and presence in facilities management

Facility Management Market

Source: Global FM, CBRE

7 Corporate Real Estate Director - Key Takeaways

Drivers to Implement Shared Workplace Strategy ▪ Corporate real estate executives increasingly seek connected, efficient facilities that can support Reduce Costs modern workplace technologies and a customized 45% human experience Need a Short Term Space Solution 42%

▪ Real Estate director’s need to focus on the individual Increase Flexibility in Leasing Terms 41%

and his or her needs. They need to view their Acquire Satellite/Remote Office 25% facilities with an eye on attracting employees and Spaces keeping them engaged and productive Attract and Retain Talent 21% Promote Networking and ▪ Optimizing the human experience with smart Collaboration 15%

building technologies is quickly becoming a Promote Innovation 13% competitive imperative

78% of millennials 77% of Real Estate employees agree or strongly agree that their jobs will see workplace quality as important when change considerably over the next three to five choosing a new employer years as a result of digital business trends

8 Real Estate Project Manager - Key Takeaways

▪ Project Managers can monitor heavy construction Technology Implemented by Construction equipment using sensors and perform predictive Companies maintenance by tracking abnormal patterns in (% Companies)

temperature fluctuations, vibrations etc. This can save Drones 29%

time and money, as well as prevent unnecessary delays 3D Scanners 9%

in construction projects Pre-Fabrication/Modularization 8% ▪ To remain competitive, project managers need to 360 Deg Photo/Video 7% embrace emerging uses for leveraging model data, for Augmented Reality 7% e.g.: Laser scanning, augmented reality, simulation and Virtual Reality 7% analysis, hyper-realistic immersive visualization 3D Printers 6%

▪ The construction industry continues to under spend on Wearable Devices 5% technology compared to other industries, with minimal budget and allocated personnel 50% of construction companies ▪ Construction managers and operators can use real-time report spending information about personnel, worksites, and job 1% or less on technology annually conditions to run their operations more safely

9 Facility Manager - Key Takeaways

▪ With smart building technology, facility managers will ▪ Facility managers can use building data to answer key be able to monitor, manage and optimize building questions that drive smarter workplace strategy decisions. operations in real-time (and in many cases, remotely) What space is being used at capacity—or underutilized? When is it used? And by whom? Leveraging data analysis ▪ Facility managers need to adopt and support digital and smart building infrastructure, an organization can processes by facilitating more effective energy quickly understand whether facilities and services are management, achieving operational cost savings, boosting workplace productivity—or are falling short reducing environmental impact and extending asset lifecycles

68% of Facility Managers plan to use technology to achieve a greater level of customer satisfaction by making better-informed building operations decisions and balancing occupant needs

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