Corporate Real Estate and Facilities (CRE&F) executives face tremendous financial and productivity pressures. While cost-savings mandates and workplace transformation initiatives are not new, this economic cycle presents CRE&F with particularly significant challenges:
Ongoing inflation, which impacts everything from capital projects to facilities supplies
Central bank monetary tightening, which limits the availability of capital and raises its cost
Historically low unemployment rates, intensifying the competition for talent while driving up labor rates
Widespread adoption of hybrid work to influence talent retention, resulting in sub-optimal occupancy in most CRE&F office portfolios
Carbon reduction and net zero commitments, which require large financial investments and strategic clarity
Cash flow concerns with clients and suppliers
Strategies for Resilience Amid Economic Uncertainty
CBRE Institute’s Fall 2023 report outlines 10 initiatives CRE&F leaders may consider to navigate these challenges, including the latest perspectives on prioritizing capital for CRE projects, investing in EV charging and onsite renewables, developing a comprehensive decarbonization strategy, and using technology to manage your facilities in a smarter way.
Source: CBRE
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