Getting back to growth: Refocusing corporate real estate after being in ‘survival mode’

Abstract

Business sentiment is looking up as signs of growth reappear. Although recovery seems to be slow and marked with uncertainty, it would seem that business managers have changed their way of thinking. Many think that it is a new economy and a new business landscape out there. This past recession came fast and had a deep global impact, which has meant rethinking the fundamentals of how business managers do business and what their business model should be. The widespread impact of deep cost-cutting and massive layoffs was the result of management's survival instincts kicking in. For many companies, those survival instincts took a deep hold on management psyche, resulting in a heightened sense of risk as consumer behaviour changed and capital expenditures became harder to justify. This paper discusses the impact that the recent economic crisis has had on management practices and key areas that corporate real estate (CRE) executives need to address in order to get back to supporting business growth. Recovery from this recession is different than in past recessions. This paper seeks to provide a framework to support CRE executives as they seek to refocus their organisations in light of changes in business management and approach.