Today's Commercial Real Estate Occupiers: Strategic Implementation During a Time of Transformation.

• Author: Johnson, Barb
• Position: UB Voices by CBRE

In late March, CBRE Research released its second annual Occupier Survey Report--a report outlining the top priorities and concerns of senior corporate real estate executives throughout the Americas (North, Central and South America). Appropriately subtitled, "Building Advantage in Uncertain Territory," three priorities stood out in this year's responses: preparing for uncertainty, building a workplace experience, and the transforming role of real estate executives. While these results are reflective of the priorities outlined in 2016, there was a significant increase in respondents reporting "economic uncertainty" as a top-three challenge for 2017--52 percent as compared to 36 percent in 2016.

Though there is uncertainty on the horizon, occupiers in the Americas, and right here at home in Utah, are focusing on those items that are within their control in an effort to mitigate risks and save on costs while also implementing a workplace that is both employer- and employee-centric.

Preparing for Uncertainty

Although some uncertainty was resolved through last fall's election, the mix of policy that will be enacted remains unknown. This is important to businesses because some proposals will be notably pro-growth, but other issues are of concern--particularly those related to trade and immigration.

Also adding to this mix of uncertainty is the anticipation of an end to the current economic growth cycle. In an effort to respond to this challenge, corporate real estate executives are preparing for the future by focusing on workplace efficiencies.

The majority of corporate real estate executives are disposing of surplus space and implementing efficient workplace designs that foster productivity. This is justified, as current commercial real estate (CRE) fundamentals favor landlords. At the end of Q4 2016, U.S. office vacancy was at its lowest level since 2008, landing at 12.8%, and U.S. office completions were below the 20-year average. Combine this with the robust office-using job growth being experienced (426,000 jobs in 2016), and it's apparent why now is a good time for occupiers to focus on efficiencies and dispose of surplus space--a process known as right-sizing. CRE executives are also working hard to retain talent by focusing on building environments that are attractive to today's workforce.

Building a Workplace Environment

When asked what the main drivers of their organization's approach to workplace strategy were, talent attraction and...