Mind Reading Dec06

Mind Reading

A growing number of corporate tenants today are thinking of their real estate as more than just a place to house their employees. Instead, they’re treating it like an asset. That is borne out in a recent study of office occupiers by CoreNet Global. In all, 68 percent of respondents reported having a workplace strategy in place. And about 45 percent of participating companies termed their workplace strategy “mission critical” and “discussed and debated at the C-suite level.” On a related note, about 59 percent said that they have implemented an energy efficiency plan. Few goals are higher on office users’ lists than efficiency, but a holdover from the recession can get in the way. In the short run, the “blend and extend” approach to renewals helped many tenants and owners survive the crisis. However, it also enabled all parties to skirt the core issue of how much space they actually need. When CoreNet Global surveyed its corporate partners, it found that 50 percent of respondents reported an imbalance among the size of their workforce, unoccupied space and the company’s growth rate. Another 36 percent reported cost pressures as a continuing issue, and 40 percent said they would be willing to move to higher-quality space that is better suited to the company’s needs. The factors that influence tenant leasing choices run the gamut, with the most important associated with lease terms, ownership and property management. In a recent survey conducted by the Building Owners and Managers Association International and Kingsley Associates, 90 percent of tenants named pricing as “very important” or “important.” But 80 percent or more cited building security, parking, the landlord’s financial stability and the owner’s reputation for customer service. And at least 76 percent named factors related to lease provisions: length...