The changes shaping today's business environment.

• Author: Mellott, Darin
• Position: UB Voices

Today's executives work in a complex global atmosphere. Businesses are simultaneously confronting challenges stemming from rapid changes in demographics, technology and the economy. The environment we live and work in is in a state of constant change, and determining how to manage this change has become increasingly difficult.

In order to understand these changes, it's worth looking at what is shaping this environment.

First, start with demographics. One could say that demographics are always evolving and changing. However, the current period is particularly notable as there is a changing of the guard. Millennials are now the largest generation in the workforce, and executives are paying more attention to the preferences, challenges and potential of this generation.

Second, technology continues to evolve at a rapid pace. The high-tech tools of just a few years ago can seem ancient today. Businesses continue to harness the power of technology for their benefit, but the speed at which technology is evolving ensures that such an endeavor is a constant challenge. Furthermore, new uses and incorporations of technology are disrupting many business models across a range of industries.

Third, today's executives are also dealing with a tremendous amount of uncertainty. Changing geopolitics, reverberating impacts from the Great Recession and the powerful forces of globalization often combine to create what can be characterized as an "unusually uncertain" environment.

In an effort to determine how these changes are shaping the commercial real estate (CRE) industry, CBRE Research surveyed 229 corporate real estate executives across North, Central and South America (the Americas) to analyze their strategies, priorities and practices. These findings were summarized in a 2016 report titled, "Americas Occupier Survey," and, not surprisingly, match the overall sentiment that CBRE brokers in Utah are encountering when working with clients. The top three areas of focus which had the strongest consistency among executives are summarized below.

ENABLING TALENT

In traditional business models, an organization would set up shop in an area that made logistical sense, and then draw from the existing talent base, but this model is beginning to shift. As noted in the report, 50% of CRE executives opting to relocate are doing so in a strategic hunt for targeted skillsets. More and more, talent determines the market, while cost pinpoints the location. This is...