logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Luxembourg
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
English
  • English
  • French
  • Services
    • Business Segments
      • Advisory and Transaction
      • Capital Markets
      • Development
      • Global Workplace Solutions
      • Investment Management
      • Property Management
      • Valuation Services
    • Investors
      • Capital Advisors
      • Investment Properties
      • Investor Leasing
      • Property Management
      • Valuation Services
    • Occupiers
      • Corporate Capital Markets
      • Facilities Management
      • Occupier Transactions
      • Portfolio and Location Advisory
      • Portfolio Services
      • Project Management
      • Supply Chain
      • Transaction Management
      • Valuation Services
      • Workspace
    • Industries and Specialties
      • Data Centres
      • ESG & Sustainability Consultancy
      • Healthcare
      • Hotels
      • Industrial and Logistics
      • Laboratories
      • Leisure
      • Offices
      • Petroleum and Automotive
      • Residential
      • Retail
  • Properties
  • Research & Reports
    • Recent Research
      CBRE Insights
      Luxembourg Real Estate Market Outlook 2022
      About CBRE Research
  • People & Offices
  • About CBRE
    • Careers
      Corporate Information
      Investor Relations
      Corporate Responsibility
      Media Centre

Next

A historic year for CBRE Luxembourg
  • About
  • Media Centre
  • Human capital overrides cost in driving corporate real estate strategy according to CBRE

Human capital overrides cost in driving corporate real estate strategy according to CBRE

April 18, 2019
  • Email
  • Share
  • Tweet
  • Share
Around two-thirds of occupiers rank employee engagement (68%) and talent attraction & development (65%) as being two of the three most important drivers of corporate real estate (CRE) strategy, even ahead of cost-reduction. This is according to the 2019 EMEA Occupier Survey published today by global real estate advisor CBRE.

Banner EMEA Occupier Survey 2019_700x530

The report demonstrates that people are becoming more important than ever as drivers of real estate decisions. In last year’s survey cost-reduction was the single most important driver of CRE strategy and employee engagement was fourth but this year, cost reduction has dropped to fourth, employee engagement is second and talent attraction & development is third. In this context, optimising human capital is becoming the overriding aim of occupiers’ property decisions.

Over a third of companies see labour and skills shortages as a key strategic challenge, double last year’s result. In line with last year’s survey, technology disruption (36%) economic uncertainty (43%) and cost escalation (31%) all feature highly as key challenges for occupiers.
The survey identifies four major levers through which companies are seeking to use real estate as a way of influencing and enhancing their appeal to skilled labour, these include:

 

Procurement and fit-out strategy

While traditional procurement and fit-out approaches are still favoured when taking large leases in a new building, the survey found that occupiers are increasingly influenced by internal building characteristics. Nearly 60% of occupiers would be willing to pay a premium of at least 10% over typical prime rents for a curated high amenity offer under a service agreement, compared with 46% who would pay a similar premium for a fully-tech enabled smart building.

User Experience strategy

Formal User Experience (UX) programmes aimed at curating the full range of workforce needs across workplace, amenity and service are still not being widely used. Only around a third of companies have a formal UX programme, or plan to introduce one. However, a third of companies have plans to hire a UX lead and two-thirds would be willing to pay a premium for a building in which the landlord had provided an enhanced UX offer.

Flexible space strategy

Corporate appetite for flexible space continues to grow, with the proportion of companies expecting to make significant use of flexible space over the next three years twenty percent higher than those who currently do so. The use of flexible space as a means of attracting and retaining talent is up ten percent from last year. While a rising number of companies are also using flexible space as part of a wider attempt to experiment with different workplace and occupancy models.

Technology strategy

Technology disruption, particularly AI and machine learning is becoming a key driver of technology strategy. 70% of companies intend to raise their level of real estate technology investment in the next few years towards a more people-focussed direction. The methods of acquiring the skills needed to deliver these aims, such as data scientists, are becoming more sophisticated with corporates pursuing a variety of approaches, including outsourcing to specialists.

 

Featured
Related

Donwload CBRE's EMEA Occupier Survey 2019

CLICK HERE

Contact Us

Joanne Wrobel
Joanne Wrobel
Marketing & Research Manager
+352 26 26 12 33
  • About Us
  • Corporate Information
  • Corporate Responsibility
  • Careers
  • Investor Relations
  • Media Centre
  • Contact Us
  • Global Web Privacy and Cookie Notice
  • Sitemap
  • Terms of Use
  • Our response to schrems II
  • Facebook
  • Youtube
  • LinkedIn
  • Instagram