Professional Report - 2nd Quarter 2011

“In the new economy, markets can simply be demand streams that are waiting to be tapped by the introduction of new products...”

Following this most recent economic correction, the stage is now set for these new technologies, products, and service trends to roll out and dramatically influence the nature of work, where we do it, and how quickly decisions will be made.

Just take a look at the advanced technologies being implemented in the emerging markets of India and Asia. So much is being learned from these “emerging tigers,” and yet, rather than worrying about this as a competitive threat, we must all recognize and acknowledge that they too have much to learn about North American know-how in service delivery, management skills, and the development expertise required to manage growth in the throws of constant and never-ending change.

Historically, a company’s cost of occupancy (i.e.: its lease costs or capital real estate costs and related amortization thereon) has always been a focus for cost containment and cost minimization initiatives, as these costs have always had a direct impact on the “bottom line” and a company’s valuation model. Strategically focused corporations, however, now see creative opportunities to utilize real estate assets as a “strategic tool” used or deployed to attract, motivate, retain, and challenge their “best and brightest” employees to promote “Brand” and to demonstrate the corporation’s commitment to its values, vision and social responsibility. Historically, companies have always been focused on the wage and salary impacts that often represent the company’s largest expense. They also consider the overall impact of real estate decisions (typically long-term planning initiatives) on the economic efficiency and effectiveness of this significant combined expenditure.

It’s a very exciting time in the commercial real estate industry right now as companies of all shapes and sizes huddle to re-shape themselves to compete in the new economy and prepare for the stronger days around the corner.