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If there was ever a group that the Real Estate world watched as a barometer of the future it is the Corporate Real Estate department. After all, these departments are reflective of the state of the economy and reflect the growth or retraction strategies associated with economic fluctuation. With every change in the economy comes a new strategy for Corporate Real Estate. In addition to traditional economic influences, Real Estate departments are also being impacted by the mobility paradigm, as well as the overall rethinking of office space in general. The ideas, concepts and subsequent trends being discussed at this year’s conference could very well be the beginning of a new paradigm which will radically redefine how Corporate America designs, operates and uses space!

Realcomm 2004.San Francisco.Opening Session.Cisco Presentation.Slide 7!

For most people reading this Advisory the statement above will have very little meaning. In contrast, for those who attended the General Session, Mark Golan, VP of Worldwide Real Estate and Workplace Resources’ presentation left a lasting impression. For one attendee, the impact was so great he remembered the number of the specific slide of the presentation that showed the future of Corporate Real Estate according to Cisco. When was the last time a presentation made such an impact that you remembered a specific slide number!

If Mark Golan’s presentation was any indication of what was in store for the rest of the conference regarding Corporate Real Estate departments, the audience was in for some very interesting discussions. The following represent a summary of the trends that were discussed relative to technology and automation and the impact to the Corporate Real Estate world.

• Corporations are looking at ways to significantly downsize the amount of space required to operate
• Increased employee mobility continues to impact the way corporations operate and use space
• The concept of a “touchdown” space was introduced as a new option for mobile workers
• Wireless technology and mobile devices continue to significantly impact the Corporate workplace
• Automation budgets for Corporate Real Estate departments are beginning to see increases
• Corporate Information Technology (IT) departments are beginning to recognize RE department needs
• IT and Corporate Real Estate departments are working closer than ever to manage the assets of the corporation
• RE departments who use information systems strategically are having bigger business impacts
• Well organized Real Estate asset management is increasing through Corporate America
• Corporate America is very involved in the Commercial Real Estate data standard initiatives
• Enterprise solutions with CRE data assets included are spreading through Corporate America
• Facility/property and workspace management are continuing to merge in the corporate strategy
• Building automation and the subsequent security, convenience and cost benefits is gaining momentum
• The concept of “plugging” corporate facilities into the net and managing everything has arrived

Over the next few years, new technologies impacting our workplaces will bring about dramatic shifts in the way Corporate America, transacts, operates and uses Commercial Real Estate. Not only will these changes impact the overall operation of the corporations, they will create a ripple effect to all aspects of our industry, especially the owners and operators who will continue to see a shift in the consumption habits of these mega firms. With continued pressure to operate at optimal efficiency and effectiveness, the days of unused, poorly managed and catalogued Corporate Real Estate assets are coming to an end.