CREMRU-JCI Annual Survey of Corporate Real Estate Practices
2002 Technical Report Professor Ranko Bon Rachael Luck
Corporate Real Estate Management Research Unit School of Construction Management & Engineering University of Reading October 2002 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 1
Contents
List of figures 3
List of tables 4
Executive Summary 6
Introduction 10
1 Level of response to the survey 11
2 The organisations 15
2.1 Number of properties, employees and CREM employees 15
2.1.1 Properties 16
2.1.2 Employees 17
2.1.3 CREM employees 18
2.1.4 Key indicators for an average organisation 19
2.2 The relationship of property owned to the organisation as a whole20
2.3 The time horizon used for long-term planning 21
3 The organisation of Corporate Real Estate Management (CREM)22
4 Corporate Real Estate Management (CREM) aims and objectives24
4.1 CREM mission statements 24
4.2 Current CREM objectives 27
5 CREM policies, functions and activities 29
6 The rôle of real estate within organisations in general 32
7 The rôle of real estate in respondents' own organisations 36
8 Knowledge and skills crucial to CREM in the future 41
9 Impact of the internet on corporate real estate and property industry 44
10 Comparison of CREOs, Non-CREOs and Service Providers 45
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10.1 Rôle: Background data 46
10.2 Rôle: Organisation of CREM unit 46
10.3 Rôle: Current CREM objectives 47
10.4 Rôles: CREM policies, functions and activities 48
10.5 Rôle: Role of CRE in own organization 51
10.6 Rôle: Role of CRE in general 54
10.7 Rôle: Knowledge and skills crucial to CREM in the future 57
11 Chief Real Estate Officer (CREO) 63
12 Analysis by Region 64
12.1 Region: Background data 64
12.2 Region: Organisation of CREM unit 65
12.3 Region: Current CREM objectives 67
12.4 Region: CREM policies functions and activities 68
12.5 Region: Role of CRE in own organisation 71
12.6 Region: Role of CRE in general 74
12.7 Region: Knowledge and skills crucial to CREM in the future 77
12.8 Region: Impact of the internet on CRE and property industry 81
Appendices
I List of participating organisations
II Bibliography
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List of figures
Fig. 1 The respondents to the 2001 survey by region 11
Fig. 2 Response to the survey by region for the years 1993-2001 12
Fig. 3 Number of properties owned by an average organisation for the years 1993- 2001 16
Fig. 4 Number of people employed by an average organisation for the years 1993- 2001 17
Fig. 5 Number of CREM people employed by an average organisation for the years 1993-2001 18
Fig. 6 Share of property in use, operating costs and total assets 20
Fig. 7 Trends in the organisation of corporate real estate management 23
Fig. 8 Trends in CREM policies, functions and activities 31
Fig. 9 Rôle of real estate in general 35
Fig. 10 The rôle of real estate in respondents' own organisations 39
Fig. 11 Knowledge and skills crucial for CREM in the future 43
Fig. 12 CREOs number of years experience in real estate and current post 63
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List of tables
Level of response from different regions- all years 12
Level of responses from different market sectors 13
The organisation 2001 results 15
The organisation all years 15
Key indicators for an organisation all years 19
Relationship of property owned to the organisation as a whole 20
Time horizon used for long term planning 21
Corporate real estate management organisation 2001 results 22
Corporate real estate management organisation all years 22
CREM mission statements 24
CREM objectives 27
CREM policies, functions and activities 2001 results 29
CREM policies, functions and activities all years 30
The rôle of corporate real estate in general 2001 results 32
The rôle of corporate real estate in general all years 33
The rôle of real estate in respondent's own organisation 2001 results 36
The rôle of real estate in respondent's own organisation all years 37
Knowledge and skills crucial to CREM in the future 2001 results 41
Knowledge and skills crucial to CREM in the future all years 42
Impact of internet on corporate real estate and property industry 44
Rôles: Experience of Real Estate Executives 45
Rôles: Organisation background data 46
Rôles: Organisation of CREM 46
Rôles: Current CREM objectives 47 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 5
Rôles: CREM policies, functions and activities 48
Rôles: Rôle of CRE in own organisation 51
Rôles: Rôle of CRE in general 54
Rôles: Knowledge and skills crucial to CREM in the future 57
Rôles: Impact of the internet on CRE and the property industry 60
Chief Real Estate Officer 2001 results 63
Chief Real Estate Officer all years 63
Regions: Background data 64
Organisation of CREM unit 65
Regions: Current CREM objectives 67
Regions: CREM policies, functions and activities 68
Regions: Rôle of CRE in own organisation 71
Regions: Rôle of CRE in general 74
Regions: Knowledge and skills crucial to CREM in the future 77
Regions:Impact of the internet on CRE and the property industry 81 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 6
Executive Summary
The main objective of the annual survey of corporate real estate practices is to facilitate inter-organisational comparisons, which will help promote more rapid diffusion of best corporate real estate management (CREM) practices across the globe.
The annual CREMRU survey of corporate real estate practices was inaugurated in the summer of 1993, but it had been preceded in part by the 1991 CREMRU survey of Chief Real Estate Officers (CREOs) and chairmen from the top 100 EC Organisations. Both NACORE (International Association of Corporate Real Estate Executives) and IDRC (International Development Research Council) have been instrumental in the distribution of the survey to their membership. From 1997 the survey was conducted in collaboration with the International Performance Management Unit at Johnsons Controls Incorporated (JCI). In 1999 IDRC’s endorsement of the survey has opened it to a wider international audience.
The CREMRU-JCI survey is aimed at Real Estate Officers: Chief Real Estate Officers (CREOs), Non-CREOs within corporate real estate organisations and corporate real estate management Service Providers. The survey focuses on the incidence of CREM policies, functions and activities as well as the elucidation of views concerning the knowledge or skills relevant to the CREM function in the future.
The key findings from this survey are grouped into three sections: (1) significant features from the 2002 data, (2) the views of Real Estate Officers with different professional rôles, and (3) the views of Real Estate Officers from differing regions.
Organisations in general The average number of properties per organisation remains at the same level as 2001, although the number of employees (headcount) has increased from last year’s survey low. Consequently the number of employees per property has increased this year to the highest level since the survey began, exceeding the previous peak in 1994.
The number of CREM employees within an average organisation has increased this year. The ratio of employees to CREM employees varies over the ten year sample but for the last six years has been consistently low. The ratio of properties per CREM employee decreased this year to the lowest level since the survey began.
The share of property in total assets and the share of property vacant remained stable for two years. The share of property owned in total property and share of property in annual operating costs both increased since last year.
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I Organisation background data The long-term planning time horizon used by the majority of the organisations is under 4 years.
This year the organisation of CREM as a cost centre and organising CREM by function were equal highest ranked.
The most common CREM mission statement for this year's population was, 'Supporting business objectives' in North America, ‘Cost effective facilities’ in UK and Rest of Europe and ‘Maximising return from assets’ in Rest of the World.
II CREM policy, function and activity The most popular CREM policy, function or activity this year was e-mail, which has been highest ranked since it was introduced in 1999.
III Rôle of corporate real estate Throughout the ten years of this survey the highest ranked statements have always been, 'real estate is only part of the working environment organisations requires' and 'the primary aim of real estate in organisations is to provide appropriate working environments for the least overall cost'. The role of corporate real estate was ranked the same for people's own organisation as for organisations in general.
IV CREM skills for the future For ten years the top ranked skills have always been: strategic planning, real estate portfolio management, negotiation and deal-making organisation's business or activity and information management. This year customer relations was also highly ranked. Strategic planning has consistently been the highest ranked skill for the future.
V Impact of the internet on CRE Since 2000, when this question was introduced, most organisations thought that 'Internet based information systems will make the management and servicing of global portfolios easier' and ranked this statement highest. This year there was more confidence that, 'Internet based information systems will enable better business decisions concerning real estate to be made'.
Analysis by Rôle
I Organisation background data CREOs have more experience in real estate than Non-CREOs and Service Providers. Service Providers spend longer in post than Non-CREOs and Service Providers. All used planning time scales between 3 and 4.2 years.
II CREM current objectives CREOs, Non-CREOs and Service Providers ranked the importance of current CREM objectives differently. CREOs ranked 'meeting needs of the operating CREMRU-JCI Annual Survey of Corporate Real Estate Practices 8
divisions' highest, Non-CREOs 'meeting workplace needs of business growth' and Service Providers 'minimising operating expense'.
III CREM policies functions and activities E-mail was the highest ranked business-as-usual activity by CREOs, Non- CREOs and Service Providers.
IV & V CREM skills for the future Strategic planning was the highest ranked skill by all. ‘Construction management’ was a skill considered important by CREOs, Service Providers were not sure and Non-CREOs didn’t consider it a skill for the future.
VI Impact of the internet All agreed that 'internet based information systems will make the mangement and services of global portfolios easier'.
Analysis by Regions
I Organisation Background Data
The average experience in post ranged between 4.5 and 5.5 years for all regions except the UK where the average experience in post was 8 years. The experience in real estate was more consistent, between 15 to 17.5 years. The time horizon for planning ranged between 3.5 to 5 years, Rest of the World having the longest time horizon.
The share of property own in total property ranged between 41% in UK and 62% in Rest of the World. The share of property in total assets ranged between 7% in Rest Europe and 46% in Rest of the World.
II CREM policies functions activities Both 'Procurement Policy' and ‘Organization networks/intranets’ were highly ranked business-as-usual policies in all regions.
III & IV Rôle of CRE in organisations 'The primary aim of real estate in organizations is to provide appropriate working environments for the least overall cost' was highly ranked across all regions, as was the statement that 'Real estate is only a part of the working environment organizations requires' for both own and other orgaizations. UK and Rest of Europe organizations considered that ‘Real estate executives are regularly briefed about corporate goals and strategies’ but responses from the Rest of World and USA were less certain.
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V CREM skills for the future 'Strategic planning' was the highest ranked skill in USA, UK, Rest of Europe and highly ranked in Rest of the World. ‘Customer relations’ was highly ranked in USA, other regions were ‘not sure’ of the importance of this skill.
VI Impact of the internet 'Internet based information systems will make the management and servicing of global portfolios easier' was highest ranked across all regions.
The respondents from all regions viewed 'Within 12 months most real estate processes will use or will be based on internet technologies' with some scepticism. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 10
Introduction
This report presents the key findings of the 2002 survey of corporate real estate practices conducted by the Corporate Real Estate Management Research Unit (CREMRU) at the University of Reading and the International Performance Management Unit at Johnson Controls Inc. (JCI). It places this year's findings in the context of previous years' surveys (1993-2001).
The data has been collected by questionnaire sent to Real Estate Officers, that is, executives concerned with real estate in organisations.
The report's structure follows the sequence of the questions in the questionnaire, presenting background information about the participating organisations and then a description of their corporate real estate management practices. The report is divided into 3 sections; 1 Results for the whole population 2 Analysis by Rôle 3 Analysis by Region
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1 The level of response to the survey
Method of analysis
The survey was conducted by self-administered questionnaires completed by Real Estate Officers within each organisation. The questionnaires were sent to approximately 16,000 organisations in 2002 and the questionnaire could be completed on the Johnsons Controls web site. This year the website was maintained by The University of Reading.
The population has been broken into three categories:
CREOs 30.8 % Non-CREOs within CREM organisations 30.8 % CREM service providers 19.2 % Others 19.2 % Total 100 %
A list of the names of organisations who responded can be found in Appendix I.
Rest of the World UK 8% 19%
UK
Rest of Europe Rest of Europe 15% US Rest of the World US 58%
Figure 1 The respondents to the 2002 survey by region
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The responses from different regions
All years
Number 1993 1994 1995199 1997 1998 1999 2000 2001 2002 6 Europe 15 24 11 8 18 64 195 48 34 16 Americas 6 17 7 20 34 67 101 88 63 28 Asia 9 23 17 5 3 Australia 10 5 34 6 1 Africa 2 2 1 Middle East 1 Total 21 41 18 28 52 150 326 190 109 48
Note: There were 8, 17, 6, 4, 14, 53, 162 , 37, 25 and 9 participants from the UK in 1993, 1994, 1995, 1996, 1997, 1998, 1999 2000, 2001 and 2002 respectively.
250
200
150 Europe North America 100
50
0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 2 Response to the survey by region for the years 1993-2002
Comment
Most of the responses, over 50% were from the Americas, approximately a third from European organizations, 8% were from both Australian and Asian organizations.
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The responses from different market sectors
Method of analysis The respondents were asked to state their main business, activity or function, which was then coded from a selection of 46 categories. The results are shown below as a frequency and as a percentage of the total population.
Code Market Sector Frequency Percentage 1 Atomic 1 2.5% 2 Banks 2 5.1% 3 Breweries 4 Building & Construction 2 5.1% 5 Buiding materials & merchants 6 Chemicals 7 Defence 8 Distributors 3 7.6% 9 Diversified industrials 10 Education – further/technical college 11 Education – general 12 Education – higher/university 2 5.1% 13 Electricity 14 Electronic & electrical equipment 1 2.5% 15 Engineering 16 Extractive industries 17 Food manufacturers 18 Gas distribution 19 Health care 1 2.5% 20 Household goods 21 Information Technology 7 18% 22 Insurance 2 5.1% 23 Investment 1 2.5% 24 Leisure & hotels 25 Life assurance 26 Media 27 Merchant banks 28 Oil 1 2.5% 29 Other financial 4 30 Other services & businesses 31 Petrochemical 32 Pharmaceuticals 3 7.6% 33 Printing paper & packaging 34 Property 35 Public sector – central government 2 5.1% 36 Public sector – government agency 3 7.6% 37 Public sector – local government 38 Public sector – military 39 Retailers – food 40 Retailers – other CREMRU-JCI Annual Survey of Corporate Real Estate Practices 14
41 Spirits, wines & ciders 42 Support services 43 Telecommincations 44 Textiles & apparel 1 2.5% 45 Tobacco 46 Transport 3 7.6% 47 Utilities – Energy 48 Water 100%
Comment These results show the wide spread of business types that have participated in the survey and the small numbers of responses within each category. Further analysis of the data using these categories would prove unreliable. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 15
2 The Organisations
This section of the survey collected data about the organisation and has allowed comment on an 'average' organisation and the change in trend of the size of organisations over the last eight years.
2.1 Number of properties, employees and CREM employees
Method of analysis
This section's data was analysed looking at the highest, lowest and mean values for each question.
2002 results
Highest Lowest Median Mean Standard deviation Turnover £250,000,000,000 £400,000 £340,000,000 £2,370,000,000 £4,687,108,012 Properties 7300 1 60 479 1156 Headcount 170000 3 5000 18261 32574 Workplaces 140000 1 603 10664 26949 Floor area 31,000,000 465 180000 1429846 5035386 (m2 Gross) CREM £626,000,000 £122850 £13,000,000 £80490482 123186392 budget CREM 850 0 11 71 155 employees
All years Mean 199 1994 1995 1996 1997 1998 1999 2000 2001 2002 3 Properties (K) 1.2 0.6 1.3 1.0 0.6 1.0 0.7 1.3 1.1 1.1 Employees (K) 53 40 44 41 24 31 22 24 15 32 CREM employees 49 66 115 68 86 108 91 101 45 71
(Headcount has been used for the number of employees).
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2.1.1 Properties
1.4 1.3 1.2 1.1
1 Average number of 0.9 properties 0.8 0.7 0.6 0.5 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 3 Number of properties in thousands owned by an average organisation for the years 1993-2002
Comment
Throughout the ten years of this survey most organisations have had between 600-1300 properties per organisation. The average number of properties per organisation remains at the same level as 2001.
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2.1.2 Employees
60 55 50 45 40 Average number of 35 employees 30 25 20 15 10 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 4 Number of people employed by an average organisation for years 1993-2002
Comment
Since 1993 there has been a declining trend in the number of employees for an average organisation. The trend has changed and between 2001-2002 the number has increased from15,000 to 32,000 employees (headcount).
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2.1.3 CREM employees
120 110 100 90
80 Average number of 70 CREM employees 60 50 40 30 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 5 Number of CREM people employed by an average organisation for years 1993-2002
Comment
The number of CREM employees within an average organisation has increased this year from last year’s all time low. The average number of CREM employees within an organisation is now 71. This increase can in part be explained by the increase in the average number of employees shown in 2.1.2
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2.1.4 Key indicators for an average organisation
All years
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Employees per 23 35 23 18 37 29 29.4 19 14 38 property Properties per CREM 25 9 11 15 8 10 8 13 25 7 employee Employees per CREM 1082 608 382 603 279 284 242 238 342 257 employee Gross floor area (m2)/ 90 136 135 78 employee
(For these calculations 'headcount' was used for 'employee').
Comment
The number of employees per property has increased this year to the highest level since the survey began, exceeding levels at the previous peak in 1994.
The ratio of number of employees to CREM employees varies over the ten year sample and has been at a consistently low level for the last six years.
The ratio of properties per CREM employee has decreased this year to the lowest level since the survey began.
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2.2 The relationship of the property owned to the organisation as a whole
Percentage 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Share of owned property in 59 39 48 42 43 49 47 50 42 44 total property used Share of property in annual 9 16 9 15 21 14 28 19 14 17 operating costs Share of property vacant 7 7 8 Share of property in total 17 33 8 14 29 34 29 book 30 23 22 assets
70
60
50 Share of owned property in total property used 40 Share of property in annual operating costs 30 Share of property in total 20 assets
10
0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 6 Share of property in use, operating costs and total assets
Comment
This year’s results are similar to those for 2001. The share of property in total assets and the share of property vacant has remained stable for two years, 22% property in total assets and 8% property vacant respectively. The share of property owned in total property and share of property in annual operating costs have both increased since last year.
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2.3 The time horizon used for long-term planning
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Time horizon (years) 5.1 4.9 5.5 5.4 5.3 4.6 4.7 4.2 3.6 3.7
Comment
The long-term planning time horizon used by the majority of the organisations is under 4 years. The planning timescale has decreased since1995 but has stabalised over the last two years. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 22
3 Corporate real estate management (CREM) organisation
Method of analysis
This section gathered data about the organisation of corporate real estate management within the firms to allow comment on the different CREM structures in use and any change over time. The questionnaire offered the respondent six options to describe how CREM is organised within their own organisation. The response was either yes or no, indicating whether a mechanism is in use. The mean percentage was calculated for each year and is presented below.
2002 results
Rank Question % Yes 1 Is CREM unit a cost centre? 77% 2 Is CREM organised by function? 77% 3 Is CREM organised by region? 37% 4 Is CREM organised by "internal client/business unit"? 39% 5 Is CREM unit a profit centre? 13% 6 Is CREM unit a separate subsidiary? 13%
All years
Percentage 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Cost centre 67 81 71 82 75 85 81 75 83 77 Organised by function 58 58 76 62 58 76 76 76 69 77 Organised by region 43 48 71 62 29 51 48 47 41 37 Organised by "internal 38 37 47 27 31 33 36 39 36 39 client/business unit" Profit centre 29 24 29 30 17 18 28 33 25 13 Separate subsidiary 24 12 35 15 20 13 20 13 18 13
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90 Cost centre 80
70 Organised by function 60 Organised by region 50 40 Organised by "internal client/business unit" 30 Profit centre 20 10 Separate subsidiary 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 7 Trends in the organisation of corporate real estate management
Comments
This year the organisation of CREM as a cost centre and organising CREM by function were equal highest ranked. The third and fourth most popular methods for organising CREM are by region and by internal client/business unit. The two lowest ranked methods were CREM unit as a separate subsidiary and as a profit centre, which have consistently been the least used structures for organising CREM.
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4 CREM aims and objectives
Method of analysis
To ascertain the current CREM aims and objectives of organisations the respondents were asked to state their organisations' CREM mission statement in their own terms. These statements were analysed by content analysis by breaking down each statement according to recurring terms used and developing a framework of generic headings to code each statement. The coding framework for each section is shown. This approach has allowed comment on the frequency of terms used within the mission statement.
4.1 CREM mission statement
Code Mission statement North UK Rest Rest America Europe World 1 Supporting business objectives 10 1 1 2 Provision of cost effective facilities 7 3 2 1 3 Adding value to the business 2 1 2 4 Maximising return from assets 1 2 3 5 Best quality service 3 1 6 Customer satisfaction 3 1 1 1
North America 1 To provide appropriate facilities that support the work of ***. 1 To support the mission and vision of the company by providing an enhanced physical environment conducive to high levels of production for all. 1 Provide *** with an environment promoting creativity and engineering excellence. 1 *** has overall responsibility and accountability to ensure that the real estate from which *** conducts business meets the business needs today and going forward. 2 To house employees in space that meets their business needs effectively at the lowest possible cost. 2 Provide cost effective productive physical environment to as an enabler to the knowleged employee to achieve their business objective. 6, 5 The *** group values all contributions equally, is focused on the customer, excels in challenging and multi functional endeavours, and is recognized as a key contributor to the ongoing success of *** world class operation. 4 Maximize the value of real property assets for all business units through acquisition, use, and disposition strategic planning. 3, 6 Provide an effective workplace and environment that enhances productivity and satisfaction. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 25
2, 3 To provide to our operational regions and divisions the best possible real estate at the least cost possible in the shortest time possible and to manage it all efficiently. 3 Maximize productivity of our knowledge workers by designing for the whole and tailoring to the individual. 1 Provide strategic input for real estate impacts to organizational goals and transactional management. 2 To provide the best working environment to our federal tenant agencies at the best value to the taxpayer. 5 Service company's equipment rental business to the fullest. 2, 1 Provide business center network globally at competitve costs of supply, manage the network and respond with property supply in a timely manner to business opportunities. 1, 6 To provide competitive advantage through development and execution of real estate strategies that support business objectives and goals in order to increase shareholder value. 5 Continually exceed our customers expectations. 1 *** will partner with business units and shared services to develop dynamic work environments that contribute to the overall success of the business. 2 To provide the best possible office space at a fair market price and in keeping with the firms standards. 1 *** is involved in all real estate decisions worldwide in all affiliates 2 Strategically sources high quality, cost effective real estate services for *** and its businesses. 1 To work in partnership with *** units to provide integrated Real Estate solutions and workplace services in support of business unit goals.
UK 4 To maximise our clients returns in a responsible and informed manner whilst minimising their true operational costs 2, 4 Maximise returns from surplus assets and provide cost effective services 1 Creating an enhanced estates environment within which the University can flourish
3 To provide flexible leasing systems in order to maximise cash flow from properties 6, 3 To be the provider of choice of workplace environments that anticipate and meet customers needs , are fit for purpose and provide value for money. 5 To provide the right space in the right place at the right time and at the right cost. 2 To manage the *** in an efficient and cost efficient manner, whilst considering the environmental impact of the estates activities 2 To provide operationally affordable accommodation to all internal occupiers.
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Rest Europe 3 CRE operations are supporting *** core business operations and targeted to create added value to the company. Facilities are a business resource. 1 *** is organizing the secondary processes of the company as a core process. 2 Maintain the corporate real estate assets and provide facility services at a high level and low cost. 2 Provide and maintain suitable working environment, assure continuity and reduce risk of the business processes at optimal cost. 6 We are a technical division of a high level providing the Flemish civil servant a comfortable workplace. 3 Improvement of the core business' productivity through holistic management of organization's real estate and material/immaterial infrastructure.
Rest of the World 6, 4 To serve developers, property owners and end-users by applying world- standard property management expertise, knowledge and technology in the maintenance of properties to improve the quality of the property and to extend its functional life. 4 To develop and maintain the best possible physical environment for education and research by effectively using available resources. 4 Manage the building to the highest standard of grade office and maximize income from effectively leasing the building. 2 To accommodate the group's operations at optimal costs.
Comment The most common CREM mission statement for this year's population was, 'Supporting business objectives' in North America, ‘Cost effective facilities’ in UK and Rest of Europe and ‘Maximising return from assets’ in Rest of the World.
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4.2 Current CREM objectives
Method of analysis
The respondents were asked to tick their 5 most important CREM objectives from a list of 19 statements. The responses were ranked and are shown in the table below.
Rank Question % Yes 1 Minimise the operating expense of the portfolio 67.9% 2 Meet the individual needs of business operating divisions 45.3% 3 Minimise the liabilities and risks to the organisation caused 37.7% by property and its use 4 Meet the workplace needs of business growth 34% 5 Reduce the portfolio’s size/divest space 24.5% 6 Minimise direct real estate/FM headcount requirement 22.6% through flexible outsourcing 7 Enhance the organisation’s internal and external image 22.6% through its property and working environments 8 Maximise the work practice flexibility of the workplace 20.8% 9 Minimise the capital investment required of the portfolio 20.8% 10 Maximise the quality of the workplace in support of work 20.8% activity and team productivity 11 Maximise the investment/capital value of the portfolio 18.9% 12 Maximise the organisational benefits from a ‘global’ 18.9% property resource 13 Support dynamic cultural change through the workplace 18.9% 14 More integration & benefits with other functions 17% 15 Minimise property oriented operational constraints on the 17% organisation 16 Maximise the physical flexibility of the workplace 15.1% 17 Liquidation of property asset value for business investment 9.4% 18 Develop E-business strategy 7.5% 19 Integration of an acquired/merged organisation’s portfolio 5.7%
Comment The percentage response shows how many people listed that objective amongst their 5 current objectives, that is 36 of the 53 responsents to this section listed ‘Minimise the operating expense of the portfolio’ as one of their 5 objectives = 67.9%.
The results are shown in rank order. The most poular CREM objectives were to ‘Minimise the operating expense of the portfolio’ to 'Meet the workplace needs of business growth' and ' Minimise the liabilities and risks to the organisation caused by property and its use’. There was a split in the ranking of the CREM objectives: the top four CREM objectives accounted for a significant proportion of the responses.
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‘Minimise direct real estate/FM headcount requirement through flexible outsourcing’ moved from 19th in last year’s survey to sixth position. ‘Reduce the portfolio’s size/divest space’ moved from 12th to fifth highest ranked CREM objective. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 29
5 CREM policies, functions and activities
Method of analysis
This section asked the respondents to state whether the following items are part of their CREM policies, functions and activities, indicating whether it is Business as Usual (BaU), a New Initiative (NI) or Not Done at all. The responses were either yes or no. The responses have been presented as percentages in combined BaU and NI rank order.
Rank Question Business New Combined Not Combined as Usual Initiativ BaU & NI Done BaU & NI % Yes e % Yes % Yes 1 E-mail 96% 0% 96% 4% 2 Procurement policy 78 16 94 6 3 Property management information system 56 36 92 8 4 Organisation networks/intranets 78 12 90 10 5 Property strategic plan(s) 61 29 90 10 6 In-house purchasing function 86 4 90 10 7 Disaster recovery plan(s) 49 39 88 12 8 Computer-based inventory systems 65 20 85 15 9 In-house move planning and management 74 8 82 18 function 10 Supplier alliance and creation management 51 28 79 29 11 Formal workplace standards 62 16 78 22 12 In-house facilities management function 71 6 77 21 13 Ongoing property performance 44 30 74 26 measurement 14 Policy on the use of consultants 64 9 73 27 15 Intranet/internet service portal site 60 12 72 28 16 Separate evaluation of real estate 57 14 71 29 17 In-house construction management function 63 8 71 29 18 In-house maintenance-management 69 2 71 29 function 19 Property performance benchmarking 34 36 70 30 study(s) 20 Property-by-property accounting 54 26 70 30 21 Property services help-desk 60 10 70 30 22 Teleworking or work-at-home policy 36 34 70 30 23 E-procurement 36 32 68 32 24 Internal rents 58 6 64 36 25 E-business strategy 35 27 62 38 26 In-house design-management function 52 8 60 40 27 In-house research and development 49 6 55 45 function 28 Serviced offices 40 13 53 47 29 Hotelling facilities 24 28 52 48 30 Desk sharing 18 32 50 50 31 Clear desk policy 20 12 32 68 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 30
32 Property-related research fund 4 0 4 96
All years CREM policies, functions and activities
Question 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 BaU & BaU & BaU & BaU & NI NI NI NI E-mail 48% 51% 91% 97% 94% 96% Procurement policy 52 69 76 82 86 94 Property management 86 95 89 82 88 85 91 85 81 92 information system Organisation 29 40 84 91 89 90 networks/intranets Property strategic plan(s) 90 88 78 82 83 89 84 78 87 90 In-house purchasing function 63 51 81 85 81 90 Disaster recovery plan(s) 43 54 61 57 56 64 79 73 81 88 Computer-based inventory 81 95 89 79 87 84 82 82 83 85 systems In-house move planning and 71 73 70 70 81 82 management function Supplier alliance and creation 66 65 75 79 management Formal workplace standards 57 68 67 64 71 75 70 71 75 78 In-house facilities management 52 76 67 75 64 76 78 76 78 77 function Ongoing property performance 76 63 72 71 58 69 72 64 70 74 measurement Policy on the use of 67 85 67 64 65 62 63 63 68 73 consultants Intranet/internet service portal 38 51 79 79 78 72 site Separate evaluation of real 76 73 67 86 85 84 66 70 75 71 estate In-house construction 29 61 44 71 67 69 72 61 74 71 management function In-house maintenance- 38 51 61 64 58 62 75 69 72 71 management function Property performance 52 78 72 68 67 82 68 66 81 70 benchmarking study(s) Property-by-property 76 59 50 61 50 62 77 74 68 70 accounting Property services help-desk 48 60 53 55 62 70 Teleworking or work-at-home 19 24 33 32 37 58 33 65 66 70 policy E- procurement 65 62 68 Internal rents 81 56 78 57 60 53 70 66 69 64 E-business strategy 66 66 62 In-house design-management 33 49 50 61 52 51 60 55 63 60 function CREMRU-JCI Annual Survey of Corporate Real Estate Practices 31
In-house research and 31 40 41 48 53 55 development function Serviced offices 39 43 42 53 Hotelling facilities 35 29 28 38 37 52 Desk sharing 38 34 44 32 27 47 36 37 45 50 Clear desk policy 14 22 22 25 17 22 33 37 28 32 Property-related research fund 8 27 12 17 11 4
120
100 Internal electronic mail
80 Property management information system Office networks/ intranets 60
Property strategic plan 40
Procurement policy 20
0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 8 Trends in CREM policies, functions and activities
Comments
The most popular CREM policy, function or activity this year was e-mail, which has been highest ranked since it was introduced in 1999. The 2002 results show a continuum within the ranking, that is, there were no obvious junctions in the priority of the items.
The five highest ranked items for 2002 were used to plot the results over the previous years of the survey. An in-house purchasing function is now equal fouth ranked CREM function, last year this was ranked equal sixth.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 32
6 The rôle of corporate real estate in general
Method of analysis
This section gathered information about the rôle of real estate in general, that is, the respondent's perceptions of other organisations which are also in the real estate business. The respondent was asked to rank each statement on a scale of 1 to 5 (1 = strongly disagree, 2 = disagree, 3 = not sure, 4 = agree, 5 = strongly agree).
This data was ranked using the mean to allow comment on the priority of the statements for 2002. The mean results were calculated for previous years data and are presented.
2002 results
Question Mean Standard deviation
The primary aim of real estate in organisations is to provide appropriate 3.9 .89 working environments for the least overall cost
Real estate is only a part of the working environment most organisations 4.0 .89 require
Real estate is an important capital asset the return on which organisations 3.3 1.1 seek to maximise
Real estate information is regularly reported to corporate executives 3.1 1.1
Real estate executives are regularly briefed about corporate goals and 3.1 1.2 strategies
Real estate is recognised as a key corporate asset in organisations 2.94 1.2
Real estate executives generally have a responsibility for enhancing 3.0 1.0 workforce productivity
CREOs have sufficient information to clearly evaluate the performance of 3.0 .84 real estate
Real estate executives generally take the lead in integrating all aspects of 2.9 .96 workspace delivery, including Information Technology, Human Resources, Finance etc.
Corporate executives recognise that every organisation that occupies space 2.8 .93 is in real estate business as well
Real estate financial returns are the same or higher than overall returns 2.7 .90
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 33
Comment The highest ranked statements were: 'The primary aim of real estate in organisations is to provide appropriate working environments for the least overall cost' and 'Real estate is only a part of the working environment most organisations require'.
All years
Statement 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
The primary aim of real estate in 4.2 4.1 3.8 4.1 4.0 3.9 organisations is to provide appropriate working environments for the least overall cost
Real estate is only a part of the 4.0 4.2 3.9 4.1 3.8 4.0 working environment organisations require
Real estate is an important 3.2 3.0 3.5 3.4 3.3 capital asset the return on which organisations seek to maximise
Real estate information is 2.5 3.0 2.8 3.1 2.7 3.0 2.9 3.6 3.2 3.1 regularly reported to corporate executives
Real estate executives are 3.0 3.1 2.8 3.0 2.9 3.0 2.9 3.5 3.1 3.2 regularly briefed about corporate goals and strategies
Real estate is recognised as a 2.7 2.8 2.6 3.0 2.8 3.2 2.9 3.4 3.1 2.9 key corporate asset in organisations
Real estate executives generally 3.2 2.8 3.2 3.1 3.0 have a responsibility for enhancing workforce productivity
CREOs have sufficient 3.7 3.9 4.1 3.6 2.5 2.7 2.8 3.1 3.0 2.9 information to clearly evaluate the performance of real estate
Real estate executives generally 2.7 2.7 3.0 2.7 2.7 take the lead in integrating all aspects of workspace delivery, including Information Technology, Human Resources, Finance etc. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 34
Corporate executives recognise 3.7 3.9 4.1 3.6 2.5 2.9 2.7 2.8 2.7 2.9 that every organisation that occupies space is in real estate business as well
Real estate financial returns are 2.6 2.6 2.1 2.8 2.5 2.4 2.6 2.7 2.7 2.7 the same or higher than overall returns
Comment
The two highest ranked statements, for the last five years, are those introduced in the 1997 questionnaire: 1 'Real estate is only part of the working environment organisations require'. 2 'The primary aim of real estate in organisations is to provide appropriate working environments for the least overall cost'.
As shown in Figure 9 on the next page.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 35
The primary aim of real estate is to provide w orking environments for the least overall cost
Real estate is only part of the w orking environment organisations require
Real estate is an important capital asset the return on w hich organisations seek to maximise
Real estate executives generally have a responsibility for enhancing w orkforce productivity
Real estate is recognised as key corporate asset in organisations
Real estate information is regularly reported to corporate executives
Real estate executives are regulalry briefed about corporate goals and strategies
Corporate executives recognise that every organisation that occupies space is in the real estate business as w ell RE executives generally take the lead in integrating all aspects of w orkplace delivery
CREOs have sufficient information to evaluate the performance of real estate
Real estate financial returns are the same or higher than overall returns
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 9 Rôle of real estate in general
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 36
7 The rôle of real estate in the respondents' own organisations
Method of analysis
This section gathered information about the rôle of real estate in the respondent's organisation. The respondent was asked to rank each statement on a scale of 1-5 (1 = strongly disagree, 2 = disagree, 3 = not sure, 4 = agree, 5 = strongly agree).
This generated data was ranked using the mean to allow comment on the priority of the statements for 2002. The mean results were calculated for previous years data and are presented.
2002 results
Question Mean Standard deviation
The primary aim of real estate in organisations is to provide appropriate 4.1 1.1 working environments for the least overall cost
Real estate is only a part of the working environment most organisations 4.2 .94 require
Real estate information is regularly reported to corporate executives 3.7 1.3
Real estate is an important capital asset the return on which organisations 3.5 1.2 seek to maximise
Real estate is recognised as a key corporate asset in organisations 3.4 1.3
Real estate executives are regularly briefed about corporate goals and 3.6 1.2 strategies
CREOs have sufficient information to clearly evaluate the performance of 3.3 1.1 real estate
Real estate executives generally have a responsibility for enhancing 3.4 1.3 workforce productivity
Corporate executives recognise that every organisation that occupies space 3.0 1.1 is in real estate business as well
Real estate executives generally take the lead in integrating all aspects of 2.9 1.4 workspace delivery, including Information Technology, Human Resources, Finance etc.
Real estate financial returns are the same or higher than overall returns 2.9 .93
Comment The highest ranked statements were 'The primary aim of real estate in organisations is to provide appropriate working environments for the least overall CREMRU-JCI Annual Survey of Corporate Real Estate Practices 37
cost' and 'Real estate is only a part of the working environment most organisations require'.
All years
Statement 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
The primary aim of real estate in 4.0 4.1 3.9 3.9 4.2 4.1 organisations is to provide appropriate working environments for the least overall cost
Real estate is only a part of the 3.9 4.2 4.1 3.8 4.1 4.2 working environment organisations requires
Real estate information is 4.1 4.2 3.9 4.3 3.7 3.9 3.7 3.2 3.8 3.7 regularly reported to corporate executives
Real estate is an important 3.7 3.6 3.4 3.5 3.5 capital asset the return on which organisations seek to maximise
Real estate is recognised as a 3.4 3.9 3.2 4.1 3.5 3.9 3.5 3.1 3.5 3.4 key corporate asset in organisations
Real estate executives are 3.9 4.0 3.9 4.0 3.4 3.8 3.5 3.0 3.5 3.6 regularly briefed about corporate goals and strategies
CREOs have sufficient 3.4 3.9 3.4 4.1 3.7 3.4 3.5 3.0 3.4 3.3 information to clearly evaluate the performance of real estate
Real estate executives generally 3.6 3.2 2.9 3.2 have a responsibililty for enhancing workforce productivity
Corporate executives recognise 3.3 3.7 3.1 3.5 2.7 3.2 3.0 2.9 2.9 3.0 that every organisation that occupies space is in real estate business as well
Real estate executives generally 3.0 3.0 2.7 2.8 2.9 take the lead in integrating all aspects of workplace delivery, including Information Technology, Human Resources, Finance etc. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 38
Real estate financial returns are 2.5 3.9 3.4 4.1 2.5 2.5 2.8 2.7 2.8 2.9 the same or higher than the overall returns
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 39
The primary aim of real estate is 4.5 to provide w orking environments for the least overall cost
Real estate is only part of the w orking environment organisations require
Real estate is an important capital 4 asset the return on w hich organisations seek to maximise
Real estate executives generally have a responsibility for enhancing w orkforce productivity
Real estate is recognised as key 3.5 corporate asset in organisations
Real estate information is regularly reported to corporate executives
Real estate executives are 3 regulalry briefed about corporate goals and strategies
Corporate executives recognise that every organisation that occupies space is in the real estate business as w ell RE executives generally take the 2.5 lead in integrating all aspects of w orkplace delivery
CREOs have sufficient information to evaluate the performance of real estate
Real estate financial returns are 2 the same or higher than overall returns 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 10 Rôle of real estate in respondent's own organisation
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 40
Comment The two highest ranked statements: 'The primary aim of real estate in organisations is to provide appropriate working environments for the least overall cost' and 'Real estate is only a part of the working environment organisations requires' have held this position for the past five years, when they were first included to the survey. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 41
8 The knowledge and skills crucial to CREM in the future
Method of analysis This section gathered the respondent's perceptions of the knowledge and skills which would be crucial to CREM in the future. The respondent was asked to rank each statement on a scale of 1-5 (1= least important, 5= most important). This mean results are presented in the table below.
Statement Mean Standard Deviation Strategic planning 4.5 .76 Real estate portfolio management 4.2 1.1 Negotiation and deal making 4.0 1.1 Organisation's business or activity 4.1 .90 Customer relations 4.2 .89 Performance measurement 3.9 .87 Project management 3.7 1.0 Information management 4.0 .83 Value management 3.7 1.0 Information technology management 3.7 .86 Performance benchmarking 3.8 .87 Risk management 3.7 .93 General business administration 3.6 .95 Facilities management 3.8 .98 Environmental management 3.4 1.0 Workplace design 3.5 1.1 Scenario planning 3.7 .94 Corporate finance 3.6 .99 Alliance management 3.5 1.1 E-business 3.2 .93 Corporate infrastructure resource management 3.6 .93 Total quality management 3.8 .86 Personnel management 3.6 1.1 Security and safety management 3.8 1.0 Government regulation 3.4 1.0 Real estate development 3.6 .97 Community relations 3.3 1.0 Contract management and law 3.6 .95 Management accounting 3.1 1.0 Investment appraisal 3.4 .98 Marketing 3.2 1.0 Process re-engineering 3.3 1.0 Construction management 3.1 1.1 Globalised services 3.2 1.1 Design management 3.0 .96 International finance/ economics 3.1 1.1 Tax management 2.8 1.0 Foreign languages 2.6 1.1
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 42
All years
Statement 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Strategic planning 4.4 4.4 4.4 4.6 4.3 4.5 4.1 4.2 4.3 4.5 Real estate portfolio 4.1 4.3 4.2 4.3 4.3 4.1 4.2 4.1 4.2 4.2 management Negotiation and deal 4.2 4.1 3.9 4.5 4.1 4.0 4.0 4.0 4.2 4.0 making Organisation's business or 4.2 4.4 4.6 4.3 4.0 4.3 4.0 4.1 4.1 4.1 activity Customer relations 4.0 4.1 3.8 4.0 4.0 4.2 Performance measurement 4.1 3.9 4.5 4.1 3.9 4.1 3.8 3.9 4.0 3.9 Project management 4.0 3.8 3.5 3.7 3.9 3.7 Information management 3.6 3.6 3.6 3.7 3.8 4.0 Value management 3.6 3.8 3.7 Information technology 3.8 3.6 4.1 4.1 3.6 3.6 3.7 3.7 3.7 3.7 management Performance benchmarking 3.8 3.9 3.6 3.7 3.7 3.8 Risk management 3.5 3.6 3.6 3.7 3.7 3.7 General business 3.6 3.7 3.6 administration Facilities management 3.7 3.7 3.8 3.9 3.8 3.5 3.5 3.6 3.7 3.8 Environmental 4.0 4.0 3.9 3.9 3.7 3.6 3.6 3.6 3.6 3.4 management Workplace design 3.3 3.7 3.6 3.6 3.4 3.6 3.4 3.6 3.6 3.5 Scenario planning 3.5 3.6 3.7 Corporate finance 3.4 3.8 3.4 3.5 3.6 3.6 Personnel management 3.2 2.9 3.2 3.7 3.4 3.5 3.3 3.5 3.6 3.6 Alliance management 3.5 3.5 3.5 E-business 3.6 3.5 3.2 Corporate infrastructure 3.5 3.5 3.6 resource man. Total quality management 4.0 3.9 3.9 3.9 3.5 3.7 3.5 3.5 3.5 3.8 Security and safety 3.1 3.4 3.5 3.1 3.2 3.0 3.2 3.4 3.5 3.6 management Government regulation 3.3 3.3 3.6 3.9 3.2 3.2 3.2 3.4 3.4 3.4 Real estate development 3.3 3.3 2.9 3.2 3.4 3.5 3.6 3.4 3.4 3.6 Community relations 3.0 3.0 3.2 3.4 3.0 3.3 3.0 3.3 3.3 3.3 Contract management and 3.2 3.3 3.3 3.6 3.4 3.3 3.2 3.2 3.3 3.6 law Management accounting 3.0 3.1 3.0 3.2 3.3 3.1 Investment appraisal 3.4 3.2 3.4 Marketing 3.0 3.5 3.3 3.2 3.2 3.2 Process re-engineering 3.0 3.2 2.9 3.2 3.2 3.3 Construction management 3.4 3.3 3.1 3.2 3.2 3.1 Globalised services 3.2 3.1 3.2 Design management 3.0 3.4 3.0 3.1 3.1 3.0 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 43
International finance/ 3.0 3.4 3.2 3.0 3.1 3.4 3.0 3.0 3.0 3.1 economics Tax management 3.1 3.0 3.2 3.0 2.6 2.7 2.9 2.9 2.9 2.8 Foreign languages 2.2 2.6 2.4 2.4 2.7 2.6
4.7 4.6 4.5 Real estate portfolio management 4.4 Strategic planning 4.3 4.2 Organisation's business or activity 4.1 Negotiation and deal 4 making 3.9 3.8 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 11 Knowledge and skills crucial for CREM in the future
Comment
The skills considered most important for CREM for the future were in rank order: strategic planning, real estate portfolio management, negotiation and dealmaking, customer relations, negotiation and dealmaking organisation's business or activity and information management. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 44
9 Impact of the internet on corporate real estate and the property industry
Method of analysis
This section was introduced in last year’s questionnaire to gather information concerning the impact the internet and e-business is having, or likely to have on the property industry. The respondent was asked to rank each statement on a scale of 1-5 (1 = strongly disagree, 2 = disagree, 3 = not sure, 4 = agree, 5 = strongly agree).
Response between 1-5 Mean Standard Deviation Internet based information systems will make the management 4.0 0.78 and servicing of global portfolios easier. Internet based information systems will enable better business 3.6 1.0 decisions concerning real estate to be made. The internet is causing revolutionary change to the structure 3.4 1.1 and practices of the property industry. E-procurement is only useful for buying commodity products 3.4 1.1 and services and not for anything customised. Internet based information systems will speed the management 3.3 1.1 integration of all corporate infrastructure resources. Business-to-business internet technologies, by reducing 3.0 .98 transaction costs make it easier to change suppliers The biggest threat to existing service providers is not from 3.1 1.1 competition within the industry, but from others currently outside the property industry The internet is enabling existing practices to be improved 3.1 1.1 significantly, but will not lead to radical change. E-business will streamline organisation processes, reduce 2.9 .92 headcount and thereby reduce space demand Within 12 months most real estate processes will use or will be 2.8 1.2 based on internet technologies
Comment The highest ranked statement were: 1 'Internet based information systems will make the management and servicing of global portfolios easier'. 2 'Internet based information systems will enable better business decisions concerning real estate to be made'. 3 ‘The internet is causing revolutionary change to the structure and practices of the property industry’ 4 E-procurement is only useful for buying commodity products and services and not for anything customised.
The changes in the rank order of statements since last year reflect less confidence that the internet will dramatically influence corporate real estate practice and the property industry. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 45
10 Comparison of responses from CREOs, Non-CREOs and Service Providers
Method of analysis
The 2002 survey questionnaires were sent to different people concerned with corporate real estate management; Chief Real Estate Officers (CREOs), Non- CREOs within corporate real estate organisations Service Providers and others providing independent real estate advice for organisations.
The survey population
The respondents to the survey were grouped into three categories, according to their professional rôles: Percentage Chief Real Estate Officers (CREOs) 31% Non-CREOs within CREM Organisations 31% CREM service providers 19% Other 19% Total 100%
The rôle category 'Other'included;
Business Development Manager Consultant Facilities Operations Financial support to CRE Management level CRE organisation RE Strategic Planning Unit in CRE Department Site Facilities Director Strategic Planning Administrator
Rôle: Experience of Real Estate Executives
2002 Number of years CREO CREO N-CREO N-CREO Service Service mean stnd. dev. mean stnd. dev. Provider Provider mean stnd. dev. Experience in post 6 5.4 5 3.9 9 7.6 Experience in real estate 18 7.9 16 7.9 17 8.7 Time horizon (years) 3.6 1.4 4.2 24.8 3 1.2
Comment CREOs have more experience in real estate than Non-CREOs and Service Providers. Service Providers spend longer in post than Non-CREOs and Serive Providers. All use planning time scales between 3 and 4.2 years. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 46
10.1 Rôle: Organization background data
CREO CREO N-CREO N-CREO Service Service mean stnd. dev. mean stnd. dev. Provider Provider mean stnd. dev. Properties (K) 0.3 319 1.1 1937 0.18 21 Headcount (K) 13 15405 36 50717 0.332 458 Workplaces (K) 10 19834 25 48397 0.383 454 % workplaces to headcount 77% 69% 1.1% CREM employees 15 22 175 250 36 86 Share of owned property in total 49% 35 47% 37 26% 40 property used (%) Share of property in annual 25% 34 6% 3 25% 8 operating costs (%) Share of property in total assets 37% 31 27% 30 3% 4 % Share of property vacant % 9% 12 8% 14 5% 6
Comment Non-CREO and CREO organizations have more employees (headcount) 13- 36K than Service Providers and a larger number of workplaces. Service Providers have workplaces for a higher percentage of their employees than CREO and Non-CREO organizations.
Non-CREOs have more CREM employees than Service Providers and CREOs. 'The share of property in annual operating cost' was lower for Non-CREOs than CREOs and Service Providers. The 'Share of property in total assets' was lower for Service Providers than Non-CREOs and CREOs.
10.2 Rôle: Organization of CREM
1 Yes CREO Non-CREO Service Provider 0 No Cost centre 69% 93% 67%
Separate subsidiary 20% 14% 11% Profit centre 7% 23% 11% Organised by function 80% 80% 56% Organised by region 21% 60% 33% Organised by "internal 40% 43% 44% client/business unit"
Comment CREOs, Non-CREOs and Service Providers most frequently organise CREM as a cost centre. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 47
10.3 Rôles: Current CREM objectives
Percentage response CREO Non- Service CREO Provider Minimise the operating expense of the portfolio 56% 81% 50% Meet the individual needs of business operating divisions 63 32 30 Meet the workplace needs of business growth 32 19 50 Minimise the liabilities and risks to the organization 38 44 30 caused by property and its use Maximise the investment/capital value of the portfolio 13 32 20 Maximise the quality of the workplace in support of work 13 20 activity and team productivity Reduce the portfolio’s size/divest space 32 25 10 Integration of an acquired/merged organization’s portfolio - 19 - Enhance the organization’s internal and external image 25 32 30 through its property and working environments Minimise the capital investment required of the portfolio 38 19 - Liquidation of property asset value for business investment 19 13 - Maximise the physical flexibility of the workplace 25 13 10 Support dynamic cultural change through the workplace 25 6 40 Maximise the work practice flexibility of the workplace 19 19 30 Minimise direct real estate/FM headcount requirement - 32 40 through flexible outsourcing Minimise property oreinted operational constraints on the 32 - 40 organization Develop an e-business strategy - - 20 Achieve more integration with other organizational 19 13 10 infrastructure Maximise the organizational benefits from a ‘global’ 19 24 20 property resource
Comment The following four CREM objectives were ranked highly by CREOs, Non- CREOs and Service Provider organizations: 'Minimise the operating expense of the portfolio' 'Meet the individual needs of business operating divisions' 'Meet the workplace needs of business growth' ‘Minimise the liabilities and risks to the organization caused by property and its use’.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 48
10.4 Rôle: CREM policies, functions and activities
1 Not done CREO N-CREO Service 2 New initiative Provider 3 Business as usual Property managment information system 1 13% 13% 2 33% 20% 40% 3 53% 67% 60% Property-by-property accounting 14 7 20 1 2 13 20 40 3 47 73 40 Ongoing property performance 40 7 30 measurement
2 20 33 40 3 40 60 30 Internal rents 47 13 50
26 3 47 87 50 Formal workplace standards 33 7 20 2 20 7 30 3 47 86 50 E- mail 14 2 3 85 100 100 Clear desk policy 80 53 70 2 20 20 3 20 26 10 Desk sharing 60 46 40
2 27 27 40 3 13 27 20 Procurement policy 6 10 2 25 7 20 3 69 93 70 Organization networks/intrnets 25 2 13 20 3 62 100 80 Teleworking or work-at-home policy 33 27 20 2 27 33 50 3 40 40 30 Separate evaluation of real estate 27 13 50 2 20 7 20 3 53 80 30 Intranet/ internet service portal/site 53 7 30 2 13 7 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 49
3 33 86 70 Supplier alliance and creation management 19 27 40 2 31 20 40 3 50 53 20 E-business strategy 73 29 20 2 7 21 40 3 20 50 40 Hotelling facilities 60 33 50 2 27 27 20 3 13 40 30 Computer-based inventory systems 13 20 10 2 20 7 30 3 67 73 60 Property strategic plan(s) 20 7 10 2 20 26 30 3 60 67 60 Property performance benchmarking 31 27 40 study(s) 2 38 33 40 3 31 40 20 Disaster recovery plan(s) 12 7 30 2 44 53 20 3 44 40 50 Property-related research fund 100 100 90 2 3 10 E-procurement 56 13 40 2 25 34 20 3 19 53 40 Property services help-desk 56 20 30 2 6 7 10 3 38 73 60 Policy on the use of consultants 36 27 30 2 14 20 3 50 73 50 20 7 In-house purchasing function 2 7 10 3 73 93 90 In-house move planning and management 20 20 20 function 2 20 10 3 60 80 70 In-house R&D function 47 62 40 27 3 46 38 60 In-house construction management 33 33 20 function 2 7 7 10 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 50
3 60 60 70 In-house maintenance-management 36 33 10 function 2 3 64 67 90 In-house facilities management function 40 13 20 2 7 7 3 53 80 80 In-house design-management function 40 40 40 2 13 7 10 3 47 53 50 Serviced offices 43 53 40 2 7 7 30 3 50 40 30
Comment E-mail was the highest ranked business-as-usual activity by CREOs, Non- CREOs and Service Providers. A 'Property related research fund' was an activity not done at all by the majority of CREOs (100%), Non-CREOs (100%) and 90% by the Service Providers.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 51
10.5 Rôles: Rôle of CRE in own organization
Response between 1 - 5 CREO N-CREO Service mean mean Provider mean 4.3 4.2 3.3 The primary aim of real estate in organizations is to provide appropriate working environments for the least overall cost 4.4 4.3 3.7 Real estate is only a part of the working environment organizations require 3.8 3.6 3.3 Real estate is an important capital asset the return on which organizations seek to maximise 3.3 3.1 4.1 Real estate executives generally have a responsibility for enhancing workforce productivity 3.4 3.5 3.4 Real estate is recognised as a key corporate asset in organizations 3.6 3.8 3.6 Real estate information is regularly reported to corporate executives 3.7 3.5 3.7 Real estate executives are regularly briefed about corporate goals and strategies 2.9 3.3 3.1 Corporate executives recognise that every organization that occupies space is in real estate business as well 2.9 3.2 2.9 Real estate executives generally take the lead in integrating all aspects of workspace delivery, including Information Technology, Human Resources, Finance etc. 3.0 3.5 3.7 CREOs have sufficient information to clearly evaluate the performance of real estate 3.1 2.9 2.6 Real estate financial returns are the same or higher than overall returns
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 52
Rôles: My organization
Number of responses Role 1 2 3 4 5 The primary aim of real estate in organizations is to Creo 1 1 6 7 provide appropriate working environments for the N-creo 1 1 1 3 9 least overall cost Serv Prov 1 2 1 5 1 9 7 Real estate is only a part of the working Creo environment organizations requires N-creo 1 2 3 9 Serv Prov 1 1 6 2 Real estate information is regularly reported to Creo 3 1 1 6 5 corporate executives N-creo 1 2 2 4 6 Serv Prov 1 2 4 3 Real estate is recognised as a key corporate asset in Creo 1 3 3 6 3 organizations N-creo 2 2 1 6 4 Serv Prov 2 4 2 2 Real estate executives are regularly briefed about Creo 3 3 6 4 corporate goals and strategies N-creo 1 2 4 4 4 Serv Prov 1 3 3 3 Real estate is an important capital asset the return Creo 3 3 5 5 on which organizations seek to maximise N-creo 4 1 7 3 Serv Prov 1 1 3 2 2 Real estate executives generally have a Creo 1 5 1 6 3 responsibililty for enhancing workforce productivity N-creo 2 4 1 6 2 Serv Prov 2 5 3 CREOs have sufficient information to clearly Creo 2 5 2 5 2 evaluate the performance of real estate N-creo 2 4 9 Serv Prov 1 2 5 2 Corporate executives recognise that every Creo 3 3 3 6 1 organization that occupies space is in the real estate business as well N-creo 1 2 4 7 1 Serv Prov 1 3 1 4 1 Real estate executives generally take the lead in Creo 3 4 2 5 2 integrating all aspects of workplace delivery, including Information Technology, Human Resources, Finance etc. N-creo 1 6 1 3 4 Serv Prov 2 4 1 3 Creo 2 2 5 5 1 Real estate financial returns are the same or higher than the overall returns N-creo 1 2 5 3 Serv Prov 3 5 Response: 1 strongly disagree 2 disagree 3 not sure 4 agree 5 strongly agree CREMRU-JCI Annual Survey of Corporate Real Estate Practices 53
Comment There was greater similarity between the CREOs and Non-CREOs responses than Service Providers. ‘Real estate executives generally have a responsibility for enhancing workforce productivity’ was ranked higher by Service Providers than CREOs and Non-CREOs. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 54
10.6 Rôles: Rôle of CRE in general
Response between 1 - 5 CREO mean N-CREO Service mean Provider mean 3.9 4.1 3.5 The primary aim of real estate in organizations is to provide appropriate working environments for the least overall cost 4.2 4.2 3.5 Real estate is only a part of the working environment organizations requires 3.2 3.6 2.8 Real estate information is regularly reported to corporate executives 2.8 2.9 3.2 Real estate is recognised as a key corporate asset in organizations 2.7 3.2 2.3 Real estate executives are regularly briefed about corporate goals and strategies 2.6 3.6 2.5 Real estate is an important capital asset the return on which organizations seek to maximise 2.8 3.4 2.7 Real estate executives generally have a responsibililty for enhancing workforce productivity 2.8 3.0 2.6 CREOs have sufficient information to clearly evaluate the performance of real estate 2.7 3.1 1.9 Corporate executives recognise that every organization that occupies space is in the real estate business as well 3.0 3.0 2.8 Real estate executives generally take the lead in integrating all aspects of workplace delivery, including Information Technology, Human Resources, Finance etc. 2.5 2.8 2.3 Real estate financial returns are the same or higher than the overall returns
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 55
Rôles: Organizations in general
Number of responses Role 1 2 3 4 5 The primary aim of real estate in organizations is to Creo 4 7 3 provide appropriate working environments for the least overall cost N-creo 111 3 9 Serv Prov 121 5 1 Real estate is only a part of the working environment 1 10 4 organizations require Creo N-creo 12 3 9 Serv Prov 11 6 2 Real estate information is regularly reported to corporate 256 1 1 executives Creo N-creo 1 5 6 2 14 Serv Prov 241 3 Real estate is recognised as a key corporate asset in 254 3 1 organizations Creo N-creo 126 3 2 Serv Prov 251 4 Real estate executives are regularly briefed about 273 2 1 corporate goals and strategies Creo N-creo 27 2 3 Serv Prov 224 1 1 Real estate is an important capital asset the return on 223 5 2 which organizations seek to maximise Creo N-creo 17 2 4 Serv Prov 222 4 Real estate executives generally have a responsibililty 245 3 1 for enhancing workforce productivity Creo N-creo 128 3 Serv Prov 133 3 CREOs have sufficient information to clearly evaluate 144 6 the performance of real estate Creo N-creo 47 2 1 Serv Prov 135 1 Corporate executives recognise that every organization 244 5 that occupies space is in the real estate business as well Creo N-creo 464 Serv Prov 135 1 Real estate executives generally take the lead in 335 4 integrating all aspects of workplace delivery, including Creo Information Technology, Human Resources, Finance etc. N-creo 28 4 Serv Prov 361 Real estate financial returns are the same or higher than 328 1 the overall returns Creo N-creo 145 3 Serv Prov 225
Response: 1 strongly disagree 2 disagree 3 not sure 4 agree 5 strongly agree
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 56
Comment There was little difference in response between CREOs, Non-CREOs when considering the role of CREM, for organizations in general. Service providers tended to agree less with each statement. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 57
10.7 Rôles: Knowledge and skills crucial to CREM in the future
Number of responses 1 2 3 4 5 Negotiation and deal making CREO 2 3 1 10 N-CREO 4 6 5 Serv. Prov. 1 2 2 2 3 Real estate portfolio management CREO 3 7 6 N-CREO 3 5 7 Serv. Prov. 1 1 1 5 2 International finance/ economics CREO 1 1 4 9 1 N-CREO 1 2 6 5 1 Serv. Prov. 3 2 3 2 Strategic planning CREO 1 1 14 N-CREO 1 7 7 Serv. Prov. 1 3 6 Security and safety management CREO 1 2 2 7 4 N-CREO 6 6 3 Serv. Prov. 1 2 5 2 Project management CREO 1 3 2 4 6 N-CREO 2 6 5 2 Serv. Prov. 1 2 5 2 Information technology management CREO 2 3 9 2 N-CREO 6 8 1 Serv. Prov. 2 3 2 3 Construction management CREO 2 3 2 4 5 N-CREO 1 4 6 3 1 Serv. Prov. 1 1 6 2 Foreign languages CREO 4 2 4 5 1 N-CREO 1 6 6 1 1 Serv. Prov 2 2 5 1 Contract management and law CREO 1 2 3 8 2 N-CREO 5 6 4 Serv. Prov. 1 1 4 4 Facilities management CREO 2 6 4 4 N-CREO 5 6 4 Serv. Prov. 1 5 4 Tax management CREO 2 5 6 3 N-CREO 2 5 4 3 1 Serv. Prov. 1 2 3 3 1 Design management CREO 2 7 5 2 N-CREO 8 4 2 1 Serv. Prov. 1 2 5 2 Value management CREO 3 2 5 6 N-CREO 1 4 6 4 Serv. Prov. 2 1 1 6 Management accounting CREO 1 4 5 5 1 N-CREO 3 5 6 1 Serv. Prov. 2 1 4 3 Process re-engineering CREO 2 2 3 8 1 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 58
N-CREO 5 8 2 Serv. Prov. 1 3 2 4 Scenario planning CREO 6 5 5 N-CREO 3 10 2 Serv. Prov. 1 3 2 4 Corporate infrastructure management CREO 2 4 6 4 N-CREO 1 4 9 1 Serv. Prov. 1 2 7 Alliance management CREO 1 2 6 7 N-CREO 1 6 6 2 Serv. Prov. 2 1 5 2 Workplace design CREO 1 1 6 6 2 N-CREO 4 5 2 4 Serv. Prov. 1 3 2 4 Total quality mangement CREO 3 6 5 2 N-CREO 3 7 3 2 Serv. Prov. 1 2 7 Real estate development CREO 3 5 4 4 N-CREO 1 7 6 1 Serv. Prov. 1 2 5 2 General business administration CREO 1 5 6 4 N-CREO 10 4 1 Serv. Prov. 1 2 2 4 1 Community relations CREO 1 5 7 3 N-CREO 1 6 8 Serv. Prov. 2 3 3 2 Personnel management CREO 1 5 7 3 N-CREO 3 4 5 3 Serv. Prov. 2 4 3 1 Customer relations CREO 8 8 N-CREO 1 6 8 Serv. Prov. 4 2 2 2 Environmental management CREO 1 2 3 6 4 N-CREO 1 5 6 3 Serv. Prov. 1 5 3 1 Information management CREO 1 3 6 6 N-CREO 3 9 3 Serv. Prov. 1 4 3 2 Risk management CREO 3 5 5 3 N-CREO 5 6 4 Serv. Prov. 1 3 6 Government regulation CREO 3 6 6 1 N-CREO 1 1 4 5 4 Serv. Prov. 1 1 6 1 1 Organization business or activity CREO 4 5 6 N-CREO 1 2 4 8 Serv. Prov. 1 1 5 3 Performance measurement CREO 1 4 9 2 N-CREO 1 1 4 5 4 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 59
Serv. Prov. 1 2 6 1 Corporate finance CREO 1 4 7 4 N-CREO 2 5 6 2 Serv. Prov. 1 2 3 3 1 Marketing CREO 1 7 7 1 N-CREO 1 3 3 6 2 Serv. Prov. 4 1 4 1 Performance benchmarking CREO 5 8 3 N-CREO 4 5 6 Serv. Prov. 1 1 3 4 1 Investment appraisal CREO 1 2 3 8 2 N-CREO 1 1 6 6 1 Serv. Prov. 3 3 3 1 Globalised services CREO 1 2 7 3 3 N-CREO 2 7 4 2 Serv. Prov. 1 1 3 4 1
Response: 1 least important 2 less important 3 not sure 4 more important 5 most important
Comment 'Strategic planning' was highest ranked skill by CREOs, Non-CREOs and Service Providers. 'Negotiation and dealmaking' was considered more important by CREOs and Non-CREOs than by Service Providers. ‘Construction management’ was a skill considered important by CREOs, Service Providers were not sure and Non-CREOs didn’t consider it a skill for the future.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 60
Rôles: Impact of the internet on CRE and the property industry
Response between 1-5 CREO Non- Service CREO Provider The internet is causing revolutionary change to 3.3 3.4 3.5 the structure and practices of the property industry. E-procurement is only useful for buying 3.3 3.2 3.5 commodity products and services and not for anything customised. The internet is enabling existing practices to be 3.4 3.2 3.0 improved significantly, but will not lead to radical change. Internet based information systems will make the 3.9 4.1 4.1 management and servicing of global portfolios easier. Internet based information systems will enable 3.7 3.8 3.3 better business decisions concerning real estate to be made. Business-to-business internet technologies, by 3.0 3.2 2.8 reducing transaction costs make it easier to change suppliers E-business will streamline organization processes, 3.0 3.0 2.8 reduce headcount and thereby reduce space demand Internet based information systems will speed the 3.6 3.5 2.6 management integration of all corporate infrastructure resources. The biggest threat to existing service providers is 3.3 3.2 3.0 not from competition within the industry, but from others currently outside the property industry Within 12 months most real estate processes will 2.5 3.1 2.7 use or will be based on internet technologies
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 61
Rôles: Impact of the internet
No. responses 1 2 3 4 5 The internet is causing revolutionary change to the 4 4 5 2 structure and practices of the property industry. CREO N-CREO 1 3 1 9 1 Serv. Prov. 1 1 2 4 2 E-procurement is only useful for buying 1 2 5 5 2 commodity products and services and not for CREO anything customised. N-CREO 1 3 4 6 1 Serv. Prov. 1 5 2 2 The internet is enabling existing practices to be 3 4 7 1 improved significantly CREO N-CREO 2 2 3 7 1 Serv. Prov 1 2 4 2 1 Internet based information systems will make the 5 6 4 management and servicing of global portfolios CREO easier. N-CREO 3 7 5 Serv. Prov. 2 5 3 Internet based information systems will enable 1 1 2 8 3 better business decisions concerning real estate to CREO be made. N-CREO 1 3 8 3 Serv. Prov. 2 3 5 Business-to-business internet technologies, by 1 3 6 5 reducing transaction costs make it easier to change CREO suppliers N-CREO 3 6 6 Serv. Prov. 6 1 2 1 E-business will streamline organization processes, 1 2 8 4 reduce headcount and thereby reduce space CREO demand N-CREO 4 7 4 Serv. Prov. 5 3 1 1 Internet based information systems will speed the 2 3 6 3 management integration of all corporate CREO infrastructure resources. N-CREO 3 4 6 2 Serv. Prov. 2 2 4 2 The biggest threat to existing service providers is 2 1 3 8 1 not from competition within the industry, but from CREO others currently outside the property industry N-CREO 5 4 4 2 Serv. Prov. 1 2 3 4 Within 12 months most real estate processes will 4 3 5 2 1 use or will be based on internet technologies CREO N-CREO 1 4 4 5 1 Serv. Prov 2 4 3 1
Response: 1 strongly disagree 2 disagree 3 not sure 4 agree 5 strongly agree
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 62
Comment CREOs, Non-CREOs and Services Providers agreed that 'Internet based information systems will make the management and servicing of global portfolios easier'. ‘CREOs and Non-CREOs agreed that ‘Internet based information systems will speed the management integration of all corporate infrastructure resources’. Service Providers were undecided. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 63
11 Chief Real Estate Officer
Method of analysis
The highest and lowest values (number of years) a Chief Real Estate Officer (CREO) has spent in their current post and in real estate were presented for this year's data. This gives an indication of the experience of CREOs. The mean number of years a CREO has spent in their current post and in real estate were calculated for all years data to allow comment on the general experience profile of a CREO.
2001 results Mean number of years Highest Lowest Mean Experience in present post 20 1 6.1 Experience in corporate real estate 32 2 18.2
All years Mean number of 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 years Experience in post 5.6 6.5 7.4 7.7 5.4 5.7 6.3 6.2 6.1 6.1 Experience in real 14.5 15.1 16.0 15.1 15.2 16.6 18.2 16.7 15.5 18.2 estate
20
18
16
14 Experience in post
12 Experience in real 10 estate
8
6
4 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Figure 12 CREOs' number of years experience in post and real estate
Comment These results have not changed significantly throughout the last ten years. The average CREO within an organization has held that position for between 5.5 and 7.75 years and has between 14.5 and 18 years of experience of corporate real estate. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 64
12 Analysis by Region
Method of analysis
The 2001 survey questionnaires were sent to different people concerned within organizations from different regions, which have been grouped: USA, UK, Rest of Europe, Australia and the Rest of the World.
The survey population
The respondents to the survey were grouped into five regional categories;
Percentage USA 58% UK 19% Rest Europe 15% Rest World 8% Total 100%
12.1 Region: Background data
USA USA UK UK Rest of Rest of Rest Rest
mean Std. mean std. Europe Europe World World mean Std. mean Std.
Experience in post 5.2 4.0 8.2 8.7 4.7 2.9 5.5 1.9 Experience in real 17.4 9.1 16.8 7.8 14.9 9.3 17.3 9.5 estate Time horizon (years) 3.4 1.5 3.4 1.4 4.1 2.7 5.0 1.0 Properties (K) 0.6 1435 0.06 916 0.5 951 0.02 30 Headcount (K) 25 27479 1.7 56150 3 5169 0.5 607 Workplaces (K) 20 37336 1.9 4197 2.3 4756 0.03 24 % workplaces/ 80% 89% 76% 6% headcount CREM employees 41 70 160 Share of owned 42% 41% 48% 62% property in total property used (%) Share of property in 15% 19% 8% 6% annual operating costs (%) Share of property in 18% 23% 7% 46% total assets (book %) Share of space vacant 9% 9% 5% 1% (%)
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 65
Comment The experience in post was between 4.5 and 5.5 years for all regions except the UK where the average experience in post was 8 years. The experience in real estate ranged between 15 to 171/2 years. The time horizon for planning ranged between 3.5 to 5 years, Rest of the World having the longest time horizon.
The share of property own in total property ranked between 41% in UK and 62% in Rest of the World. The share of property in operating costs was lowest, 6% in Rest of World and 8% in Rest Europe. The share of property in total assets ranged between 7% in Rest Europe and 46% in Rest of the World. The share of property vacant was lowest, 1% in Rest of the World. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 66
12.2 Region: Organization of CREM unit
Percentage USA UK Rest of Rest World Europe Cost centre 74% 71% 86% 100% Organised by function 81% 75% 57% 100% Organised by region 39% 38% 50% 25% Organised by "internal 39% 25% 67% 50% client/business unit" Profit centre 15% 14% 0% 25% Separate subsidiary 8% 13% 33% 25%
Comment The organization of the CREM unit within an organization is not mutually exclusive, that is the CREM unit may be organised in more than one of these arrangements.
All regions except USA most frequently organise CREM as a cost centre. The organisation of CREM by function was most frequent in USA. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 67
Region: Current CREM objectives
Percentage response USA UK Rest Rest Europe World Meet the workplace needs of business growth 43% 33% 29% 0% Maximise the investment/capital value of the 21 22 0 50 portfolio Minimise the operating expense of the portfolio 71 78 43 100 Minimise the capital investment required of the 29 0 14 50 portfolio Liquidation of property asset value for business 7 22 14 0 investment Intregration of an acquired/merged organization’s 7 0 14 0 portfolio Reduce the portfolio’s size/divest space 25 56 14 0 Minimise the liabilities and risks to the 36 44 29 75 organization caused by property and its use Maximise the organizational benefits from a 29 22 0 0 ‘global’ property resource Meet the individual needs of business operating 57 22 29 50 divisions Minimise property oreintated operational 11 22 43 0 constraints on the organization Develop and E-business strategy 4 0 14 25 Achieve more integration with other functions 18 11 29 0 Minimise direct RE/FM headcount through 18 33 29 25 outsourcing Enhance the organization’s internal and external 18 33 29 50 image through its property and working environments Maximise the quality of the workplace in support 18 11 29 25 of work activity and team productivity Support dynamic cultural change through the 21 0 57 0 workplace Maximise the work practice flexibility of the 14 33 29 0 workplace Maximise the physical flexibility of the workplace 18 11 14 0
Comments ' Minimise the operating expense of the portfolio' was highly ranked in all regions. ‘Minimise the liabilities and risks to the organization caused by property and its use’ was highly ranked in UK, USA and Rest of the World, less so in Rest Europe.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 68
12.4 Region: CREM policies functions and activities
1 Not done at all USA UK Rest Rest 2 New initiative Europe World 3 Business as usual (Percentage response) Property management information system 1 11% 0 0 25 2 33% 44 43 25 3 56% 56 57 50 Property-by-property accounting 18 33 14 2 26 11 29 50 3 56 56 57 50 Ongoing property performance 30 22 43 measurement 2 30 22 29 50 3 40 56 29 50 Internal rents 33 22 29 50 2 11 3 56 78 71 50 Formal workplace standards 15 44 29 2 7 33 29 25 3 78 22 42 75 E-mail 14 2 3 100 86 100 Clear desk policy 82 33 57 75 2 11 29 3 7 67 14 25 Desk sharing 48 44 14 100 2 30 56 43 3 22 43 Procurement policy 7 11 2 14 33 14 3 79 56 86 100 Organization networks/intranets 7 11 14 2 11 11 14 3 82 78 72 100 Teleworking or work-at-home policy 30 22 14 50 2 22 56 57 25 3 48 22 29 25 Separate evaluation of real estate 30 22 43 2 11 11 28 25 3 59 67 29 75 Internet/intranet portal site 26 44 14 2 18 14 3 56 56 72 100 Supplier alliance creation & management 7 33 29 75 2 25 44 29 25 3 68 22 43 E-business 39 33 29 50 2 23 22 29 50 3 38 44 43 Hotelling facilities 33 67 29 100 2 41 22 14 3 26 11 57 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 69
Computer-based inventory systems 12 19 14 25 2 19 11 29 25 3 69 78 57 50 Property strategic plan(s) 7 14 25 2 39 22 14 25 3 54 78 72 50 Property performance benchmarking 30 72 25 study(s) 2 40 44 14 50 3 30 56 14 25 Disaster recovery plan(s) 7 11 28 25 2 50 22 42 25 3 43 67 28 50 Property-related research fund 96 89 100 100 2 3 4 11 E-procurement 26 33 28 75 2 41 22 28 3 33 44 42 25 Property services help-desk 30 22 29 50 2 11 14 25 3 59 78 57 25 Policy on the use of consultants 28 11 28 50 2 11 42 3 72 78 28 50 In-house purchasing function 8 11 14 2 11 14 3 92 78 72 100 In-house move planning and management 12 22 29 50 function 2 12 14 3 76 78 57 50 In-house research and development 40 67 29 100 function 2 8 14 3 52 33 57 In-house construction management 27 33 75 function 2 4 11 29 3 69 56 72 25 In-house maintenance-management 44 11 14 function 24 3 52 89 86 100 In-house facilities management 23 33 14 25 2 8 11 3 69 56 86 75 In-house design-management function 40 44 43 25 2 4 11 50 3 56 44 57 25 Serviced offices 32 89 28 75 2 8 28 25 3 60 11 42 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 70
Comment Both 'Procurement Policy' and ‘Organization networks/intranets’ were highly ranked business-as-usual policies in all regions.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 71
12.5 Region: Rôle of CRE in own organization
Response between 1-5 USA mean UK mean Rest Rest World Europe mean mean 4.0 3.9 4.0 4.8 The primary aim of real estate in organizations is to provide appropriate working environments for the least overall cost 4.3 3.9 4.1 4.5 Real estate is only a part of the working environment organizations require 3.0 3.1 3.0 3.8 Corporate executives recognise that every organization that occupies space is in real estate business as well 3.6 3.8 3.9 3.5 Real estate information is regularly reported to corporate executives 3.4 3.2 3.6 3.8 Real estate is recognised as a key corporate asset in organizations 3.3 3.9 4.0 3.5 Real estate executives are regularly briefed about corporate goals and strategies 3.0 2.7 3.0 3.0 Real estate financial returns are the same or higher than overall returns
3.2 3.4 3.6 3.5 USAs have sufficient information to clearly evaluate the performance of real estate 3.4 3.3 3.4 4.0 Real estate is an important capital asset the return on which organizations seek to maximise 2.9 2.9 3.0 2.3 Real estate executives generally take the lead in integrating all aspects of workspace delivery, including Information Technology, Human Resources, Finance etc. 3.0 3.8 3.4 3.8 Real estate executives generally have a responsibility for enhancing workforce productivity
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Region: Role of CRE in own organization
Number of responses Region 1 2 3 4 5 The primary aim of real estate in USA 1 4 1 8 12 UK 1 6 2 organizations is to provide appropriate Rest Europe 2 3 2 working environments for the least overall cost Rest World 1 3 1 1 13 12 USA Real estate is only a part of the working environment organizations requires UK 1 1 4 3 Rest Europe 1 3 3 Rest World 2 2 Corporate executives recognise that every 10 7 9 1 USA organization that occupies space is in the real estate business as well UK 2 1 1 4 1 Rest Europe 2 1 3 1 Rest World 1 3 Real estate information is regularly 3 2 4 11 7 USA reported to corporate executives UK 1 1 4 3 Rest Europe 1 1 4 1 Rest World 1 3 Real estate is recognised as a key USA 2 6 5 8 6 corporate asset in organizations UK 1 2 1 4 1 Rest Europe 2 1 2 2 Rest World 2 1 1 Real estate executives are regularly briefed USA 1 8 5 9 4 about corporate goals and strategies UK 1 1 4 3 Rest Europe 1 2 4 Rest World 2 2 Real estate financial returns are the same USA 1 6 9 7 1 or higher than the overall returns UK 1 2 5 1 Rest Europe 2 2 2 Rest World 1 2 1 CREOs have sufficient information to USA 1 9 3 13 1 clearly evaluate the performance of real estate UK 1 1 1 5 1 Rest Europe 1 3 1 2 Rest World 2 2 Real estate is an important capital asset the USA 8 3 11 4 return on which organizations seek to maximise CREMRU-JCI Annual Survey of Corporate Real Estate Practices 73
UK 1 3 2 3 Rest Europe 1 3 2 1 Rest World 1 2 1 Real estate executives generally take the USA 5 9 3 5 5 lead in integrating all aspects of workplace delivery, including Information Technology, Human Resources, Finance etc. UK 1 4 3 1 Rest Europe 1 3 1 2 Rest World 3 1 Real estate executives generally have a USA 4 8 1 11 3 responsibility for enhancing workforce productivity UK 1 1 6 1 Rest Europe 2 2 1 2 Rest World 1 2 1
Response: 1 strongly disagree 2 disagree 3 not sure 4 agree 5 strongly agree
Comment 'The primary aim of real estate in organizations is to provide appropriate working environments for the least overall cost' was highly ranked across all regions, as was the statement that 'Real estate is only a part of the working environment organizations requires'.
UK and Rest of Europe organizations considered that ‘Real estate executives are regularly briefed about corporate goals and strategies’ but responses from the Rest of World and USA were less certain. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 74
Region: Rôle of CRE in general
Response between 1-5 USA mean UK mean Rest Rest Europe Europe mean mean 3.9 3.5 4.0 4.5 The primary aim of real estate in organizations is to provide appropriate working environments for the least overall cost 4.0 3.9 3.9 4.5 Real estate is only a part of the working environment organizations require 3.0 2.4 2.4 3.8 Corporate executives recognise that every organization that occupies space is in real estate business as well 3.3 3.0 2.3 3.3 Real estate information is regularly reported to corporate executives 3.2 2.4 2.0 3.8 Real estate is recognised as a key corporate asset in organizations 3.3 3.1 2.3 3.5 Real estate executives are regularly briefed about corporate goals and strategies 2.3 2.5 2.3 3.3 Real estate financial returns are the same or higher than overall returns
2.9 3.0 2.6 3.3 CREOs have sufficient information to clearly evaluate the performance of real estate 3.2 3.6 2.7 4.3 Real estate is an important capital asset the return on which organizations seek to maximise 3.0 2.4 2.0 2.8 Real estate executives generally take the lead in integrating all aspects of workspace delivery, including Information Technology, Human Resources, Finance etc. 3.0 3.1 2.4 3.3 Real estate executives generally have a responsibility for enhancing workforce productivity
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 75
Region: Rôle of CRE in general percentage response
Number of responses Region 1 2 3 4 5 The primary aim of real estate in USA 2 5 13 6 UK 1 1 5 1 organizations is to provide appropriate Rest Europe 1 5 1 working environments for the least overall cost Rest World 2 2 1 4 15 7 USA Real estate is only a part of the working environment organizations requires UK 1 1 4 2 Rest Europe 1 1 3 2 Rest World 2 2 Corporate executives recognise that every 1 7 10 8 1 USA organization that occupies space is in the real estate business as well UK 5 3 Rest Europe 1 2 4 Rest World 1 3 Real estate information is regularly 1 5 10 7 4 USA reported to corporate executives UK 1 1 4 1 1 Rest Europe 1 4 1 1 Rest World 1 1 2 Real estate is recognised as a key USA 9 8 5 5 corporate asset in organizations UK 1 4 2 1 Rest Europe 3 1 3 Rest World 1 3 Real estate executives are regularly briefed USA 1 6 9 5 6 about corporate goals and strategies UK 1 6 1 Rest Europe 2 1 4 Rest World 2 2 Real estate financial returns are the same USA 2 6 13 3 or higher than the overall returns UK 1 2 5 Rest Europe 2 1 4 Rest World 3 1 CREOs have sufficient information to USA 1 8 12 5 1 clearly evaluate the performance of real estate UK 1 2 1 4 Rest Europe 4 2 1 Rest World 3 1 Real estate is an important capital asset the USA 1 5 11 6 3 return on which organizations seek to maximise CREMRU-JCI Annual Survey of Corporate Real Estate Practices 76
UK 1 2 3 2 Rest Europe 1 2 2 2 Rest World 3 1 Real estate executives generally take the USA 1 6 13 7 lead in integrating all aspects of workplace delivery, including Information Technology, Human Resources, Finance etc. UK 1 5 2 Rest Europe 3 2 1 1 Rest World 1 3 Real estate executives generally have a USA 3 3 12 8 1 responsibility for enhancing workforce productivity UK 3 2 2 1 Rest Europe 4 3 Rest World 1 1 2
Response: 1 strongly disagree 2 disagree 3 not sure 4 agree 5 strongly agree
Comment In general, irrespective of the region, the responses to these statements were in the same direction. ‘Real estate is only a part of the working environment organizations requires’ was the highest ranked rôle for all regions.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 77
12.7 Region: Knowledge and skills crucial to CREM in the future
Number of responses 1 2 3 4 5 Negotiation and deal making USA 2 5 8 12 UK 1 1 3 3 1 Rest 2 1 1 3 Europe Rest World 2 2 Real estate portfolio management USA 4 10 13 UK 1 2 4 2 Rest 1 1 4 1 Europe Rest World 2 2 International finance/ economics USA 1 2 8 15 1 UK 1 3 4 1 Rest 3 1 1 2 Europe Rest World 1 2 1 Strategic planning USA 7 20 UK 1 3 5 Rest 1 3 3 Europe Rest World 1 2 1 Security and safety management USA 1 3 8 8 7 UK 1 3 4 1 Rest 5 2 Europe Rest World 1 2 1 Project management USA 1 5 6 9 6 UK 1 2 5 1 Rest 2 2 3 Europe Rest World 1 2 1 Information technology management USA 1 11 11 4 UK 1 1 7 Rest 2 1 2 2 Europe Rest World 2 1 1 Construction management USA 3 7 7 7 3 UK 1 1 4 2 1 Rest 5 2 Europe Rest World 2 1 1 Foreign languages USA 4 10 9 3 1 UK 3 2 2 1 1 Rest 2 4 1 Europe Rest World 1 2 1 Contract management and law USA 1 2 8 14 2 UK 1 4 3 1 Rest 2 2 2 1 Europe Rest World 3 1 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 78
Facilities management USA 3 10 10 4 UK 1 2 5 1 Rest 2 1 4 Europe Rest World 2 2 Tax management USA 2 13 8 4 UK 1 2 2 3 1 Rest 2 1 3 1 Europe Rest World 1 1 1 1 Design management USA 1 10 7 8 1 UK 3 4 1 1 Rest 1 1 4 1 Europe Rest World 3 1 Value management USA 2 6 13 5 UK 1 1 1 5 1 Rest 1 2 1 1 2 Europe Rest World 1 2 1 Management accounting USA 7 9 8 2 UK 2 1 4 2 Rest 1 1 2 3 Europe Rest World 1 2 1 Process re-engineering USA 2 3 8 12 1 UK 1 1 3 4 Rest 1 2 1 2 1 Europe Rest World 4 Scenario planning USA 2 7 12 5 UK 1 3 5 Rest 2 2 2 1 Europe Rest World 1 2 1 Corporate infrastructure management USA 3 7 12 4 UK 2 7 Rest 1 3 1 1 1 Europe Rest World 1 3 Alliance management USA 2 6 1 7 UK 1 5 1 2 Rest 3 1 1 2 Europe Rest World 4 Workplace design USA 1 4 11 5 6 UK 1 1 1 5 1 Rest 3 1 3 Europe Rest World 1 2 1 Total quality mangement USA 5 10 11 1 UK 2 3 4 Rest 2 4 1 Europe Rest World 2 1 1 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 79
Real estate development USA 1 5 8 9 4 UK 1 7 1 Rest 4 3 Europe Rest World 2 2 General business administration USA 1 12 9 5 UK 1 2 4 2 Rest 2 2 3 Europe Rest World 2 2 Community relations USA 1 3 10 9 4 UK 1 1 5 2 Rest 1 2 1 3 Europe Rest World 4 Personnel management USA 3 9 9 6 UK 2 5 2 Rest 2 1 3 1 Europe Rest World 2 2 Customer relations USA 2 13 12 UK 2 4 3 Rest 2 2 3 Europe Rest World 1 3 Environmental management USA 1 4 9 10 3 UK 1 1 4 3 Rest 3 3 1 Europe Rest World 1 2 1 Information management USA 1 6 12 8 UK 3 3 3 Rest 1 2 3 1 Europe Rest World 1 3 Risk management USA 4 8 13 2 UK 1 2 3 3 Rest 1 5 1 Europe Rest World 2 1 1 Government regulation USA 1 5 12 7 2 UK 1 3 3 2 Rest 1 3 2 1 Europe Rest World 1 1 2 Organization business or activity USA 1 5 12 8 UK 2 1 3 3 Rest 2 2 3 Europe Rest World 1 3 Performance measurement USA 2 5 15 5 UK 1 1 5 2 Rest 2 4 1 Europe Rest World 2 2 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 80
Corporate finance USA 10 12 5 UK 3 2 4 Rest 2 1 1 2 1 Europe Rest World 1 2 1 Marketing USA 2 6 9 8 2 UK 1 4 4 Rest 3 4 Europe Rest World 1 1 2 Performance benchmarking USA 9 13 5 UK 1 1 5 2 Rest 1 3 2 1 Europe Rest World Investment appraisal USA 2 5 9 10 1 UK 1 1 5 2 Rest 2 2 2 1 Europe Rest World 1 3 Globalised services USA 1 4 8 7 7 UK 2 2 3 2 Rest 1 3 2 1 Europe Rest World 4 E-business USA 6 10 8 3 UK 1 5 2 1 Rest 1 5 1 Europe Rest World 1 3
Response: 1 least important 2 less important 3 not sure 4 more important 5 most important
Comment 'Strategic planning' was the highest ranked skill in USA, UK, Rest of Europe and highly ranked in Rest of the World. ‘Customer relations’ was highly ranked in USA, other regions were not sure of the importance of this skill.
CREMRU-JCI Annual Survey of Corporate Real Estate Practices 81
12.8 Region: Impact of the internet on corporate real estate and the property industry
Response between 1-5 USA UK Rest Rest mean mean Europe World mean mean The internet is causing revolutionary 3.5 2.9 3.4 3.5 change to the structure and practices of the property industry. E-procurement is only useful for buying 3.5 3.4 3.6 2.8 commodity products and services and not for anything customised. The internet is enabling existing practices 2.9 3.4 3.4 3.5 to be improved significantly, but will not lead to radical change. Internet based information systems will 4.2 3.8 4.0 4.2 make the management and servicing of global portfolios easier. Internet based information systems will 3.7 3.7 3.9 4.0 enable better business decisions concerning real estate to be made. Business-to-business internet 3.2 2.8 3.0 3.8 technologies, by reducing transaction costs make it easier to change suppliers E-business will streamline organization 2.9 3.2 2.9 3.0 processes, reduce headcount and thereby reduce space demand Internet based information systems will 3.6 2.9 3.3 3.5 speed the management integration of all corporate infrastructure resources. The biggest threat to existing service 3.2 3.3 2.7 3.8 providers is not from competition within the industry, but from others currently outside the property industry Within 12 months most real estate 2.9 3.0 2.1 3.3 processes will use or will be based on internet technologies
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Regions: impact of the internet on corporate real estate and property industry
No. responses 1 2 3 4 5 The internet is causing revolutionary USA 1 4 5 14 2 change to the structure and practices of the property industry. UK 1 2 4 1 1 Rest Europe 1 1 4 1 Rest World 1 3 E-procurement is only useful for USA 1 5 5 11 4 buying commodity products and services and not for anything customised. UK 2 2 4 1 Rest Europe 4 2 1 Rest World 1 3 The internet is enabling existing USA 3 9 4 9 1 practices to be improved significantly, but will not lead to radical change UK 1 3 4 1 Rest Europe 2 1 3 1 Rest World 2 2 Internet based information systems USA 5 11 10 will make the management and servicing of global portfolios easier. UK 3 5 1 Rest Europe 1 5 1 Rest World 1 1 2 Internet based information systems USA 3 6 12 5 will enable better business decisions concerning real estate to be made. UK 1 1 7 Rest Europe 1 1 3 2 Rest World 1 2 1 Business-to-business internet USA 6 10 9 1 technologies, by reducing transaction costs make it easier to change suppliers UK 5 1 3 Rest Europe 3 2 1 1 Rest World 1 3 E-business will streamline USA 10 8 7 1 organization processes, reduce headcount and thereby reduce space demand UK 1 6 1 1 Rest Europe 2 4 1 Rest World 1 2 1 CREMRU-JCI Annual Survey of Corporate Real Estate Practices 83
Internet based information systems USA 1 2 8 10 4 will speed the management integration of all corporate infrastructure resources. UK 1 2 3 3 Rest Europe 1 1 1 3 1 Rest World 1 1 1 1 The biggest threat to existing service USA 2 4 10 8 2 providers is not from competition within the industry, but from others currently outside the property industry UK 3 1 4 1 Rest Europe 1 3 1 1 1 Rest World 1 3 Within 12 months most real estate USA 4 5 9 6 2 processes will use or will be based on internet technologies UK 4 2 2 1 Rest Europe 3 2 1 1 Rest World 1 1 2
Response: 1 strongly disagree 2 disagree 3 not sure 4 agree 5 strongly agree
Comment 'Internet based information systems will make the management and servicing of global portfolios easier' was highest ranked across all regions. Ranked highest by USA, Rest of the World, Rest of Europe, and then UK. The respondents from all regions viewed 'Within 12 months most real estate processes will use or will be based on internet technologies' with some scepticism and disagreed with this statement. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 84
1995 1993 1994 AB Electrolux 1996 AB Electrolux AB Electrolux ABB ABB Asea Brown Boveri ABB ABB ABN AMRO Bank ABN AMRO Bank AT&T/NCR Air Products Air Products A&P Canada Air Products Amdahl International Avco Financal Service Avco Trust British Airways American Express Barclays Property Baker Hughes BT American Express British Telecom BCBS Arizona Data General Avco Financial Services Carnaud Metal Box Blockbuster Group Ernst & Young British Airways Chemical Banking British Telecom EUROC AB BT Chicago Title & Trust Chase Manhatta Gates Rubber Co. Campbell Soup CIBC Development CIBC Development Herman Miller Inc. Chicago Title and Trust Dial Corporation Cobb Theaters Irish Life Plc. Dun & Bradstreet Ernest & Young EUROC AB Lloyds Bank Plc Ford Motor Company Gannett First Chicago Marine Midlnd Bnk Gannett Co., Inc. Metra First Tenessee Martin Marietta General Electric Octal Communicatns Gannett Metra Corporation Glaxo Holdings Prudential Assurance General Electric Microsoft Harris Methodist System Royal Insurance Health Systm Minnesota Midland Bank Hitachi Data Systems Kiddie Academy Philips Electronics HKUniversity of S&T KPMG Rank Xerox Hospital Authority, HK Mount Sinai Medical Tandem Computers IBM Deutschland NASD Irish Life Novell Lloyds of London Sherwin-Williams McKesson Corp. SILCORP Canada Midland Bank Tandem Computers NBC Tandem Europe Oracle Corporation UK Western Atlas Pentastar Services Weyerhaeuser Philips Electronics Philips Electronics UK Prudential Assurance Rank Xerox Schlumberger Scrivner Starbucks Coffee Steelcase Tandem Computers Tandem Computers Trafalgar House United Parcel Service University of Rochester Weight Watchers WPP Group CREMRU-JCI Annual Survey of Corporate Real Estate Practices 85
1997 1998 1999 Consumers Energy ABB AB Electrolux AB Electrolux Contrica Plc ADAPTEC ABB ABB Criterion Asset Man AEA ACS Abbeyross Surveyors Cross AMOCO Adaptec Adesokan Olawumi CSFB Securities (Japan) BP International Allied Signal Inc Advanta Corp Cushman Wakefield (Tai) BT Arawak Mining Group AHOLD Vastgoed CYL Corporate RE Servs Burton Group ASEA Brown Boveri Ltd AIG Global Invst Corp D & P Holt Chicago Title and Trust Aspect Telecommunicatns Airservices Australia Danos & Associates SA Crestar Financial Corp. Bay Networks Inc Aitchison Rafetty Deutsche Bank AG Cultor Ltd. Black & Decker Corp. Alexander Trust Dobbin & Sullivan Donaldson Co. Boots Allied Domecq Retaili Ltd Donaldson Company, Inc EMAP BT Plc. Allied Signal Inc Donaldsons Chart Surv. EUROC AB BTR Plc. Allsop & Co Drivers Jonas N America First Data Resources Capital One Financial Allsports (Retail) Ltd Driving Standards Agency Fox Inc. Concentra Managed Care Andersen Consulting DTZ Debenham Thorpe Fremont General Credit Suisse First Boston Andrews Denford & Boyd DTZ International GE Modular Space Data Card Corporation Applied Materials Inc DTZ Pieda Consulting GenCorp Dentnde Bank AG Arcadia Financial Ltd DTZ Sherry Fitzgerald Herman Miller EG&G Arthur J Rogers & Co Eastman Chemical Co Hitachi Data Systems First Tennessee National Arthur Lloyd EDON Group Home Office Freddie Mac Asbury Park Press EngelVolkers Gmbh IKON Office Solutions Griffith University Aspden Gallr Mort Roche Enterprise Florida ITT Hartford Insurance Hartford Financial Asscn of Zurich Realtors Equitable Life Jones Intercable, Inc. Heidelberg America's Inc AT & T Global Real Est Equitas Ltd KeyCorp Informix Software BAA Lynton Ericsson Inc KPMG Lloyds Bank One Fawley and Booth Livingston Logistics. LMC Properties Bata Schuh AG Federal Mutual Ins. Lucient Technologies N2 ATRA Becton Dickinson Fidelity Investments Maritz, Nationsbank Montgomry Bell Atlantic First Group Plc Mellon Bank Corp. North Wales Police BG Plc Fispam Merck & Co. Ontario Realty Bidwells Property Fluor Daniel B.V Merck-Medco Polygram International Blue Circle Industries Plc FMC Corporation Nortel Royal Liver Assurance Blue Cross Association Foreman & Partners Polygram UK Stream International BMI FPD Savills Comrcl Prudential Assurance Sun Microsystems Boots Properties Plc Freddie Mac RE Service Corp Internl Sybase Bowen Son & Watson Fuller Peyser Sequent Cmpter Systms Telstra Corporation Box Commrcial Prty Sers Ganly Walters Ltd Sheffield University The Huntington Bank Britannic Assurance Plc Gastronomy Propers SIBAG Investments Thomson Consumer Elecs Brixton Estate Plc Gen America Corp SIEMENS TPG (TNT post group) Brooke International Gen Servs Admin Slavish ABC Supply United Technologies Inc Brown McConnell Clark Gerald Eve Software AG University of Ulster Bruntwood Estates Ltd GmbH Swiss Federal Railways Unova Inc BT Cellnet Glenn Larner The Capital Group Walt Disney BT Plc Glynbrochan Ltd The Stanley Works Zurich Insurance BT Property Gooch Webster Turner Properties Budworth Brown Graham & Sibbald United Technologies Building & Property Ltd Grampian Enterprise USG Corp. Burgerking Ltd Grosvenor Hill Vntr Weatherford Enterra C & J Clark Grosvenor Interntl Western Atlas Camelot Realty Ltd GTECH Corp WPP Group PLC, UK Canada Post Corporation GUA Grimley CB Hillier Parker Hallmark Cards Inc Celeka Fastighetsleapital Hamlton Osbrn Kng CGU Insurance Hans Vestergaard Williams, Talhar & Wong Harper O'Grady Chesterton F M Hatfield White Chesterton Petty Ltd Healey & Baker Chesterton plc Hewlett-Packard Chrystals Chart Surveyors Highland Assoc Cigna Companies Hip Shing Hong Dv Cinergy Hitachi Data Systms CIT Investments Ltd HKUST City Winchster Investmnts Hodgson Elkington CJ Consultants HK Land Ltd Cluttons HK Tourist Assoc CNF Transportation HK Land Ltd Coles Myer Ltd Hurlimann Immobilien Commercial Realty Group Ibstock Building Prducts Compaq Computer Ltd Ibstock, Proprty Servs Concentra Managed Care Iceland Group Plc Conrad Ritblat 1999 1999 Interconstruction CREMRU-JCI Annual Survey of Corporate Real Estate Practices 86
Interwest Property Servs Robinson Sigma RE Wintrthur Versichrugen Intvit Inc Rogers Chapman Wood County Dev Com Irish Estates Rollins Leasing Yates Commercial John Chivers Comrcl Ross & Co Yinka Sonaike & Co John Rye Commercial Royal Bank of Scot Johnson Controls / IFM Rutland PM Ltd Johnson Controls Int. Ryden Lettings Ltd Jones Lang Lasalle Salisbry Hamer Apdn KBC Bank N.V Sandsn Townd Glbrt Keith Pattinson Ltd SBC Commucations Keningtons Schrooer Ltd Knight Frank Australia Schuh Ltd Lambert Smith Hampton Shell UK Ltd Lincoln University Siemens Immobilin Man LMC Properties Inc Slough Estates plc London Mercant Securt Smith Brothers Ltd Luilliam Hill Org. Smith Madden Grp Marsh Propty & Servs Southern Calif Edisson MC Real Estate Services Sprint Corporate RE McDonalds Restaurants SRP Media One Group State Street Corp Medtronic Inc Steelcase Inc MEPC Plc Stevenage Borough Cncl Metropolis Dev Storey Sones & Partner MIBAG Prop & FM Strettons Ltd Michael Elliott Ptr Sulzer AG Microsoft Limited Sulzer Immobilien AG Midland Bank Sun Microsystems Inc Millar Kitching Suntrust Bank Atlanta Minx Man Peg Dev Swinton Group Ltd Mobil Asia Pacific Swire Properties Ltd Mobil Busines Corp Sworder Belcher Holt Montagu Evans Systems By Design Plc MTR Corporation Taylor Woodrow Plc Mullucks Wells Ass Teletech N.P.S. Estates Thames Water Plc Nat Australia Group The Bank Nova Scotia Natnl Welders Co The BOC Group Plc Navy Army Air Frce The British Land Co Plc Nelson Securits Ltd The Canada Life Ass Network Associates The Dayton Powr Light New Office Age The Dickman Co Inc Newcourt Financial The Facilities Collab Nortel Networks The Grummber Co NI Tranprt Holding The Higgins Becknell Northern Rock Plc The Hong Kong Univ NUIM The Huntington Banks Ocean Group Plc The Kiplinger Wshgtn OHP&P Architects The Protor & Gamble Oracle Corporation The Readers Digest Orchard Cove The Royal Bank of Scot Orestad Dev Corp The Staubach Company Ovington Estates The Tartan Group, Inc Oxfam Prop Serv The Uffizi Partnership Palmer & Co Thompsons Peel Holdings Plc Thorn High Street Prop Penn National Ins Thorn UK Penny Black Prop Tire Distribution Sysms, Peter Cunliffe & Co Tribune Co Phoenix Beard TU Delft PI Perform Imoblre Union Gas Limited Pioneer RE Poland Unipart Group Poundstretcher Ltd Unova Inc Prop Dev Trn &Tob US Gen Services Admin Prudential Portfolio Vanguard Group Pryme Man Internatl Venmore, Thomas Jones Rahim & Co Walt Disney Raychem Corp Warwick Martel Ltd Reynolds Metals Co Wates Properties Plc RhonePoulenc Rorer Weatherall Green Smith Richard Ellis Whirlpool Corporation 1999 1999 Robert Crawford Whitbread Property CREMRU-JCI Annual Survey of Corporate Real Estate Practices 87
2000 2000 2000 7-Eleven Stores GPU GasNet Southdown AB Electrolux Griffith Uni Sprint ABB Asea Brown Boveri GVA Grimley St Vincents Hosp Abbeyross Crtd Surv Hartham Park Vent STA Travel ABN AMRO Hatfield White State Prop NSW Adesokam Olawumi Heidelberg Aus State Strt Corp ADI Techno Hella Asia Pacific Stramit Aetna Serv Henry S Miller Sulzer R E Corp Air Products Plc Herron Todd White Sun Microsy All Sports Retails Ltd Hewitt Assoc TEAC Aus Pty Ltd Alykermer & Gray Highland Assoc Textron Inc Amrn Intnl Realty HK Uni Sc & Tch The Avdiev Grp Angle Techno Ltd Hodgson Elkinston The Bk EAsia Ltd Arch Communications Honeywell The Calgary Arprt Ath Arthur Loyd HK Int School The Chrch Ltr Day St AT&T Global RE HK Uni Sc & Tec The Earthgrains Co Ausdoc Grp Ltd IBM The Edgewater Co Aus Post - Prop Division Ibstock The Nrtrn Trust Bidwells Infineon Techno The Ryl Bk Scot Boeing Initial Saudi Arab Tom Jeff Mem Fdtn Brisbane Cncl Initial Vision Thus Britn Ass Plc Inland Empire Econ Tohsiba BT Plc Insignia/ESG TXU NetWrks Brooke Intnl Interwest Prop Serv United Energy BT Prop Ltd Invest Aus Vaasansvaasan C & W HK Irish Estates Vic Roads Can Post Corp John Deere Credit WESCO Can Nat Rlwy Jones Lang Lasalle Whirlpool Cariefacrr H.K Kingston Cty Ccl Wilson Dev Cncl Cathay Pacific Knight Frank WMC Resrces Ltd Ctrl Plaza Man Kowloon Rlwy Wood Cnty Dev Chase Manhattan Liberty Mutl Workers Comp Brd Cheston Bus LMC Prop In W.W.Grainger City Bendigo Logica UK Ltd Young & Rubicam City Geelong McDonalds City Wet Wtr Meiro Inc Citywide Admin Serv Metro Fire Brd Colliers CRE Miller Kelley Colliers Jardine Monad 3D Ltd Columbia Nat Motrola Japan Connell Finance Co Inc Mullucks Wells Consum Energy Nabisco CNF Inc Nextel Com Inc Crawford & Co Nortel NetWrks CRI Aus Pty Ltd NS Vastgoed CSC Comp Sc Corp NZ Milk Pty Ltd CSX Oracle D & P Holt Oregon Econ Dalmac Co OWP&P Datacard Grp Pacificare Delmhorst Sheehan Paine/Wetzel Delphi Auto Sys Penn Nat Ins Delta Airlines Pepco Dept Pblc Wrks Phoenix Beard Dobbin & Sullivan Pitt Dev Com DTZ Ltd Pivot Interiors Dun & Bradstrt Pricewaterhouse Eaton Corp Puerto Rico Dev Experian Queens Prop Inc Exxon Mobil RACV Faclts Coutactve Regent Grp Fst Tennessee Nat Regus FPD Savills Regus Frank Russell Reserve Bank Aus Freddie Mac Roadone Fuller Peiser Rockwell Auto Furniture Man Rollins Leasing Corp Georgia Power Sau Paulo Alpargatas Glenn Carner Save the Children Global Prop Soln Seagate Techno Glynbrochan Ltd Smith Bros Goldman Sachs Sony Corp CREMRU-JCI Annual Survey of Corporate Real Estate Practices 88
2001 2001 2002 A-NULL GmbH N American Mortgage ADP Abbeyross Prop Consult Novar House A-NULL ABN Amro Bank Optical Capital Group AbbeyRoss Chartered Accenture Oregon Econ & Commun Surveyors Ackerman & Co OWP&P Architects, Inc Accenture Adaptec Inc Philips International bv Adaptec, Inc. Adesokan Olawumi & Co Rutland Proprty Solutions Aetna, Inc. Aetna Samsung Corporation Biogen, Inc. Air Products Plc Smith Brothers Booz Allen Hamilton Inc Alliant Energy Investmnts Solutia Inc BP America Andersen (Australia) Sony Facility Mangmt Ministerie van de Vlaamse Ashland Inc State Govment of Victoria Gemeenschapsel Baker Hughes Inc Sulzer Real Estate Corp Canadian Imperial Bank Bank One Telecom NZ Ltd of Commerce Baring Houston Saunders Texas Instrument Incorp CNF Inc. Batigroup AG The Boeing Company Colliers CRE Bayer Corporation The Facilities Collaborato Consignia Plc. Royal Mail Belgacom The Gillette Company Douglas A. Edwards, Inc. Bellsouth The Hadley-Donovan Grp DTZ HK BNSF Railway Co The Hollingsworth Com EDS Bolton Metropltn. Boroug The HKPloytechnic Faceo Belgium BP Corporation The MathWorks, Inc First Data Corporation British Film Institute Toll Brothers Inc FORTIS BANK Belgium Canadian Imperial Bank Toyota Motor Sales USA Fuller Peiser Canadian Nat. Railway Trammell Crow Company General Services Capital One Services UK Atomic Energy Auth Administration CB Hillier Parker Unisys Corporation Hella Asia Pacific Pty Ltd CB Richard Ellis United Energy Limited HK University of Science Cendant Corp United Properties & Technology City of Greater Bendigo United Technologies Corp Inktomi Corporation Colliers Conrad Ritblat Er University of Durham Janssen Pharmaceutica Colliers Jackson Vaasan & Vassan Oy Johnson Controls, Inc. Communctns Data Servic Venturepoint Inc Kaiser Foundation Health Concert Walt Disney Plan, Inc Crawford & Co WESCO Distribution Inc Macromedia, Inc. Creative Project Solutions Whirlpool Corp Nationwide Insurance Dun & Bradstreet Wisconsin Lutheran Nike CSC (Australi College Novell, Inc. Dyncorp WPP Group USA, Inc Office of Government Etoile Consulting Commerce Fair Isaac OWP/P FleetBoston Financial Pine Street Group LLC FraserCRE Pitney Bowes Inc Fuller Peiser Prudential Plc GAB Robins N Amrc R. R. Donnelley Gartmore Invest Manage Regus General Motors Corp Suite 1000 Glenn Larner Commrcl Pr Seagate Technology Griffith University Smith Brothers Grubb-Ellis Developments Ltd GVA Grimley Textron Inc. H K University of Science The Facilities Hardin Construction Co Collaborative Heidelberg Americas Inc The Vanguard Group Herzog - brown admin Toyota Motor Sales USA HK University of Science UK Atomic Energy Honda America MFG Inc Authority Honeywell Unisys Ltd. Barkers Court IBM Australia and NZ University of Wales Inktomi Corporation Swansea Jafraserv Hodest GmbH Vaasan & Vaasan Oy Kana Communications White Castle International Lam Research Corp Co. Lehigh Portland Cemnt Liberty-Greenfield Macromedia, Inc Mellon Financial Corp Merck, Inc Mullucks Wells & Ass National Welders Sply Nationwide Services Nokia CREMRU-JCI Annual Survey of Corporate Real Estate Practices 89
Appendix III Bibliography
Avis, M., Gibson, V. and Watts, J. (1989) Managing Operational Property Assets Department of Land Management and Development, university of Reading, Reading.
Bon, R. (1989) Building as an Economic Process: An Introduction to Building Economics, Prentice-Hall, Englewood Cliffs, NJ.
Bon, R. (1992) “Corporate real estate management”, Facilities, Vol. 10, No.12, December, pp.13-17.
Bon, R. (1994) “Corporate real estate management practices in Europe and the United States”, Facilities, Vol. 12, No.3, March, pp.17-20.
Bon, R. (1994) “Ten principles of corporate real estate management”, Facilities, Vol. 12, No.5, May, pp.9-10.
Bon, R. (1995) “Corporate real estate management practices in Europe and the United States: 1993 and 1994”, Facilities, Vol. 13, No.7, June, pp.10-16.
Bon, R. (1996) “Corporate real estate management practices in Europe and the United States: 1993-1996”, Facilities, Vol. 15, Nos.5-6, May-June, pp.118-24.
Bon, R. and Luck, R. (1998) “Annual CREMRU-JCI survey of corporate estate management practices in Europe and USA: 1993-1997”, Facilities, Vol. 16, Nos.3-4, March-April, pp.82- 92.
Bon, R. and Luck, R. (1999) “Annual CREMRU-JCI survey of corporate estate management practices in Europe and USA: 1993-1998”, Facilities; 17:5/6; pp. 167-176; ISSN: 0263-2772
Bon, R. and Luck, R. (2000) “Annual CREMRU-JCI survey of corporate estate management practices in Europe and USA: 1993-1999”, Facilities18:5/6; pp. 213-224; ISSN: 0263-2772
Bon, R. and Luck, R. (2001) “Annual CREMRU-JCI survey of corporate estate management practices in Europe and USA: 1993-2000”, Facilities 19:11; pp. 386-395; ISSN: 0263-2772
Bon, R. Gibson, V. and Luck, R. (2002) “Annual CREMRU-JCI survey of corporate estate management practices in Europe and USA: 1993-2001”, Facilities 20:11/12; pp. 357-373; ISSN: 0263-2772
Bon, R. McMahan, J. and Carder, P. (1994) “Property performance measurement: from theory to practice”, Facilities, Vol. 12, No.12, November, pp.18-24.
Finch, E. (1992) “Reading between the lines”, Facilities, Vol. 10, No.7, July, pp.21-23.
Veale, P.R. (1989) “Managing corporate real estate assets: current executive attitudes and prospects for an emergent management discipline”, The Journal of Real Estate Research, Vol. 4, No.3, Fall, pp1-22. CREMRU-JCI Annual Survey of Corporate Real Estate Practices 90
Zeckhauser, S. and Silverman, R. “Rediscover your company’s real estate”, Harvard Business Review”, January-February, pp.111-17.