A History of CRE outsourcing

1990s 2010s

#1• Secured FIRST

contracts• FIRST Asian corporate

to outsource• FIRST global deal • FIRST Japanese

corporate outsourcing• FIRST with HSBC

• FIRST to recognize the corporate real estate opportunity in the US

• Created Corporate Services in the 3 regions

• Largest ever domestic corporate real estate outsourcing outsidethe US

• FIRST global life sciences client out of Europe

1

2000s

#1: The VUCA world makes real estate difficult

Corporate Downsizing

High-Unemployment Global Competition

Changing Economic Landscape

Volati le

Uncertain

Chaotic

Ambiguous

VUCA

≠ VUCAVUCACRECRE

Average # of decisions per day: 612

Average duration of corporate lease:

Average # of decisions per day:6124 years

#2: #2: CRE = missed CRE = missed opportunityopportunity

12

Question: How well equipped do you feel to meet the tactical and strategic demands placed on CRE teams by the C-suite?Base: 545 respondents

#3: Outsourcing can be a better way……if we evolve.

Design

Acquire

Build

Problem solving

Human Resources

Workplace

Resource Deployment

Data Visualization

Analytics

CORE COMPETENCIES

AREAS FORGROWTH

Our future

• Projects, transactions, facilities• Cost managers

• Providing best people, best ideas in a VUCA world

Price of admission

10

Changing market dynamicsOutsourcing value curve

“Out tasking”

Full integration

Partial integration

Functional outsourcing

Benefits

IT

Organization value

Innovation

Quality

Cost savings

Efficiency

Speed

Riskmanagement

10

TransactionBased

Managed Services

Inte

rdep

ende

ntM

inim

al

Equitable Partner(e.g. Joint Venture)

“Vested” Outsourcing Relationship

Approved ProviderSimple

TransactionProvider

Preferred Provider

HighLowShared Value

* JV represents a single balance sheet

Transaction-Based Business Model

Outcome-Based Business Model

Investment-Based Business Model

Outcome-Based/ Performance-Based

Relationship

Shared Value-Based Business Model

Shared Value Based Business Model