Volume 12 (2022-23)

Each volume of Corporate Real Estate Journal consists of four 100-page issues published in both print and online. Articles scheduled for Volume 12 are available to view on the 'Forthcoming content' page.

The articles published in Volume 12 are listed below. 

Volume 12 Number 1

  • Editorial:
    Simon Beckett, Publisher
  • Practice papers
    Unlocking the next wave of value in corporate real estate
    Harry Morphakis, Senior Manager and Michael Przytula, Managing Director and Global Lead, Accenture

    As real estate providers seek to recover from the COVID-19 pandemic’s impact on their tenants’ businesses — and, by association, their own — a serious question has to be asked: to drive the next wave of value, will the new normal require a change in the landlord–tenant relationship? This paper argues that the answer is yes. It requires a change from the legacy real estate mindset of cost control and reducing expenditure per square foot, to one of increasing value per square foot. Landlords can make use of a number of critical technologies to pave the way to this next wave of value creation across their portfolios: the Internet of Things (IoT), 5G and digital tenant services. This paper explores the use of these technologies, their benefits, what is required to precipitate a change in the relationship with tenants and how this will shape future operating models.
    Keywords: IoT, 5G, smart buildings, digital tenant

  • Modern lease monetisations: How to capitalise on market arbitrages to significantly reduce occupancy costs
    Bob Mohr, Founder and Chairman, Rodrigo Godoi, Managing Director, Mohr Capital and Elizabeth Loving, Senior Adviser, Mohr Partners

    This paper introduces the concept of lease monetisation and details this lucrative strategy, which allows occupiers to generate a significant cash incentive from restructuring their lease to reduce their occupancy costs even further, while securing long-term control of an asset without an ownership interest or investing their capital. This paper explains the lease monetisation process, including the way corporate occupiers can decrease occupancy costs through long-term leases by taking advantage of arbitrage opportunities in the capital markets, the types of properties suitable for lease monetisations and the importance of corporate credit.
    Keywords: lease monetisation, mission-critical facilities, cap rates, investment partner, value arbitrage, profit participation, cash incentives, lease restructure, investment-grade credit

  • How technology is advancing capital planning
    Derek Blackmore, President, AkitaBox

    This paper examines the shortcomings of current capital planning methods, most notably the facilities condition assessment (FCA). The FCA as we know it today does not provide the data and other deliverables needed for effective capital planning; however, new technologies are changing that. This paper describes key ways technology is already and will continue to accentuate the FCA and capital planning processes.
    Keywords: capital planning, facilities condition assessment, digital twin, capital planning platform, CMMS

  • Aligning experience data to return-to-office investments
    Despina Katsikakis, Global Lead Total Workplace and Bryan Berthold, Global Lead Workplace Experience, Cushman & Wakefield, and Kent Taylor, Global Director — Workplace, Technology, Design and Integrated Solutions, IBM

    Before the COVID-19 pandemic, the future of work was centred around business results driven by productivity and innovation. Today, after more than two years of navigating a new workplace ecosystem of office, remote and third places, we are learning that the future of work is all those things — but at the very centre are the people who have developed new ideas about what work means to them and what they want from their employers. While they want to be productive and innovative, they also want more flexibility, to be inspired, to have better work-life balance and wellbeing and have closer connections to colleagues and the culture. If given the chance to experience the workplace with a deep culture that fosters human connection and provides the inspiration they crave, they will deliver real results. It is an opportunity for corporate real estate (CRE) leaders to rise and partner with every discipline across their organisations, to integrate people, place and technology offerings that align on improving the employee experience. Aligning capital and operational investments requires replacing conjecture and subjectivity with employee data and insight; to lean in, listen to employees and determine what their workforce and workplace needs are to stay engaged and inspired.
    Keywords: employee engagement, workplace experience, return-to-office strategies, workplace design, flexibility, work-life balance, well-being

  • The return on investment of tenant engagement
    Phyllis Horner, CEO and Manfred Zapka, COO, Great Places and Spaces

    The COVID-19 pandemic has highlighted the need for corporate real estate (CRE) to rethink some long-held assumptions on how to avert higher vacancy rates and create value by investing in more attractive spaces. The key to good CRE performance is the ability to attract high-quality tenants, charge premium lease rent fees and avoid lease revisions or cancellations. Since the pandemic, the rules of lease retention have faced significant challenges. In an unexpected turnabout, the lessee is much more powerful in the transaction than in the past. The era where building owners, leasing agents and property managers could view leasing of spaces to corporate tenants as a commodity is over. The occupant’s experience is more central to the attractiveness of CRE in this era. Upgrading the mindset and tools for how to optimise the occupant experience requires different approaches for corporate tenants than historically. What tenants expect of the property manager, leasing agent and building owner have all increased significantly. This paper explores the foundations of these raised expectations, why they are unlikely to revert to pre-2020 levels, and provides models and tools to use in rapid improvement of results.
    Keywords: healthy buildings, safety, better workplaces, employee retention, ROI

  • Leveraging technology for strategic workplace decisions
    Simon Davis, CEO and Founder and Corinne Murray, Co-Founder and Chief Strategist, Purposeful Intent

    The COVID-19 pandemic has accelerated the evolution of our global understanding of people, space and technology. This paper explores the impacts this will have on employees, employers and real estate. Employees will be given more options and choice of how, when and where they work. Employers will be faced with new challenges in the retention and attraction of talent and how to balance real estate needs versus cost (and start considering new metrics of success), and real estate will change in ways never before contemplated. As organisations navigate the journey to whatever is next, technology and data will be key elements in decision making and tracking what is working (and what is not). This will also require new skill sets in interpreting the information and a new focus on the effectiveness of the work environment, whether that is in the office, from home or at a third place.
    Keywords: flexibility, future of workplace, workplace data, employee experience

  • Places to belong: Practical considerations for creating inclusive and impactful places of work
    Ryan Anderson, Vice President of Global Research and Insights, Jolene De Jong, Application Design Specialist and Joseph White, Director of Design Strategy, MillerKnoll

    This paper is designed to help corporate real estate (CRE) leaders create spaces that improve employee experiences and the impact of their workplace on organisational outcomes. With heightened interest in the role of post-pandemic corporate offices, home workspaces, flex spaces and other environments for supporting and connecting employees, now is an opportune time for CRE leaders to elevate the role of their workplace strategy by focusing on belonging. The paper draws upon years of research and exploration conducted by MillerKnoll brands and our customers. If desired, the foundational elements listed within it can be directly imported into an organisation’s existing workplace strategy while using this paper as a guide and catalyst to help team members, consultants and end users better understand the impact of the workplace in strengthening community, promoting a positive culture, and ensuring equitable opportunities for all employees to succeed.
    Keywords: diversity, equity, belonging, inclusive design, hybrid work, workplace strategy

  • Communities of work: Creating place in the workplace
    T. Patrick Donnelly, Partner and Client Leader, BHDP, et al.

    As we have all observed, the COVID-19 pandemic has changed our relationship to work and where work happens for the foreseeable future. With this understanding comes the need to reevaluate how we use the workplace and what the workplace means to the people using it. While people have found they do not need the workplace to necessarily do all of their work, they have come to acknowledge that they do miss people and the social interaction and collaboration enabled through physical closeness in a shared place — their community of work. In rethinking the workplace, other design-related fields and areas of scholarship can provide important insights regarding the intersection of people and place in communities, organisations and companies. For instance, it is possible to look to the fields of both urban planning and urban design for insights as to how to structure and sustain communities while creating experiences that support connections, reflect culture and bring people together through shared meaning. Tied to these fields is the practice of community design, which looks to use physical design to truly support and celebrate the sociocultural aspects of communities. Lastly, the theory of place provides an understanding of why the difference between generic space and a community-reflective place is critical to the success of communities. Together, these three lines of thought have helped inform a burgeoning theory of communities of work. Fifth Third Bank’s transformation of its mid-20th-century campus in the heart of downtown Cincinnati serves as an early, real-life example of this theory in action.
    Keywords: workplace, community, neighbourhood, culture, identity, place, design