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Organizations in Asia Pacific are responding to market volatility by concentrating on the effectiveness of their real estate portfolios and, thus, improving their organizational performance and productivity.
This report is based on the findings from the Accenture Real Estate survey of 181 global companies, with at least US$5 billion in revenues and a minimum of 10 million square feet in their organization’s real estate portfolio.
Our research findings indicate that while there is no noticeable pattern for corporate real estate in the Asia Pacific region, a rigorous corporate real estate strategy is fundamental for organizations to be successful.
The report evaluates five key themes influencing corporate real estate leaders’ approach to their real estate functions in the region—alternative workplace strategies, high market volatility, the convergence of real estate and technology, the level of portfolio ownership and the functions to outsource.
Find out how a corporate real estate strategy that focuses on four areas of value—efficiency, effectiveness, engagement and the environment—can help address some of the global real estate challenges within the context of the region’s dynamics.
There are five key themes influencing corporate real estate leaders’ approach to their real estate functions.
Companies pursue alternative workplace strategies. Strategies include implementing more mobile working methods, standards to increase productivity, green initiatives to reduce carbon footprint, and centralizing real estate management activities.
In Asia Pacific, market volatility has significantly impacted real estate portfolios and functions. Handling this volatility demands an agile real estate strategy, which is aligned with the overall business strategy and designed to cope with complexity.
In Asia Pacific, the real estate reporting structure reflects the convergence of technology and real estate. With the changing nature of work nowadays, it has become increasingly important for corporate real estate executives to have a say in how to optimize real estate assets within the context of their business strategy.
Organizations in Asia Pacific prefer portfolio ownership between 25–75 percent. Companies prefer to maintain moderate portfolio ownership levels as a mechanism to deal with the region’s volatility, while providing a flexible growth option.
The real estate operating model is highly outsourced in Asia. Outsourcing decisions are typically made based on the nature of work and the organization’s ability to perform that work. Asian companies’ real estate operating models seem to be evolving faster than those of their peers, moving across a spectrum—from highly centralized on one end to highly outsourced on the other.
In our experience, many companies tend to focus on increasing efficiency and reducing the cost of their real estate portfolio. This singular focus can potentially lose value over time.
We recommend grounding the real estate strategy in four areas of value that can allow companies to address real estate challenges, and help real estate become both a value protector and value creator.
Effectiveness: Although Asian companies are focused on workplace effectiveness, many existing real estate organizational structures are not optimal for positioning real estate as a tool for performance. A robust workplace strategy enables companies to scale and contract the workplace in line with market demands.
Engagement: Workplaces can influence what employees think and say about their employer—real estate can enhance a company’s brand, and help attract and retain talented people.
Environment: Organizations can benefit from programs to improve energy management and, where applicable, energy procurement. These efforts could assist in improving the sustainability performance of corporate real estate.
Efficiency: Efficiency is not just about finding real estate at the right price, but determining the right amount and right type of space required by the organization to support an evolving workforce, where space is well utilized and valued.
January 28, 2014
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