10 High-Impact Moves to Reduce Total Cost of Occupancy

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