Monday, 2 May
9:00 – 10:30 a.m.
Welcome & Opening General Session
Moving in the Right Direction at the Opening Session
The Opening General Session at CoreNet Global's Chicago Midwest Summit was a standing-room-only event, as attendees listened to CEO Angela Cain and Chairman of the Board Lee Utke talk about how our organization has grown during the last year.
CoreNet Global has successfully fulfilled three main goals:
- Become the premier customer service organization for corporate real estate (CRE) professionals.
- Be the essential hub for CRE research that defines the industry's future
- Establish a governance and operating model for our members
Those three goals encompass several steps, which include our move into a new work space designed by our members, a more user-friendly website, refreshing of the Global Summit experience, the addition of Summit Connect - virtual access to key parts of the Summit - and the creation of a Chapter and Community Council.
The second part of the session recognized CoreNet Global's Phase 1 award winners, which included Bank of America, the winner of the Industry Excellence Award; Cushman & Wakefield, the winner of the Sustainable Leadership Award for Design and Development; and the Pennsylvania Center for Trade Development, the winner of the Economic Development Leadership Award.
The conclusion of the session was led by keynote speaker Greg Lindsay, who discussed his insights on The Way We'll Live Next: New Frontiers of Globalization. The theme of his presentation addressed building the perfect city in terms of culture, transportation and networks. He said all in all, air travel has been resilient to challenges and that a good transportation system is necessary to be a good business location.
Lindsay discussed research from Geoffrey West, Director of the Santa Fe Institute, who has found that cities get better as they get bigger. West has determined that 600 global cities will be expected to account for 62 percent of the world's future growth.
Lindsay went on to describe several new cities in development all over the world, including eco-friendly Sino-Singaopre Tianjin, Mentougou City in China and PlanIT Valley in Portugal. He advised that when building a city from scratch, it’s helpful to replicate successful elements from existing cities.
So how will we work in new cities?
Lindsay said the trend will be people meeting and traveling face to face to make major decisions and then returning back to the home hub, and large real estate footprints will abate. He closed with a description of Mesa del Sol, a new urbanist community in New Mexico that recently broke ground. The community will be designed as a hub for the creative class – for people who are more productive working virtually most of the time.
His message was loud and clear: Cities matter, and it also matters how we move between them and with them.
– Chelsie Butler
2011 Global Award Winners
Cushman & Wakefield, the Pennsylvania Center for Trade Development and Bank of America took home 2011 Global Awards in Sustainable Leadership Design & Development, Economic Development Leadership and Industry Excellence. The three, annual Phase 1 awards were presented during the Opening Session of CoreNet Global's Chicago Global Summit.
The Pennsylvania Center for Trade Development's efforts to revamp export-promotion operations in order to deliver a service set designed to sustainably enhance the reach and capacity of the state's exporters led to the organization's Economic Development Leadership Award, which is sponsored by Biggins Lacy Shapiro & Co.
"More than 70 companies responded to our call for awards nominations this year, so we're encouraged by the number of cases that often signal the rising or waning levels of real estate industry innovation within a given time frame," said CoreNet Global CEO Angela Cain. "Right now, the tide is rising along with the economic mood, so once again new ideas and fresh thinking are moving to the forefront of real estate practices."
Additionally, award entries from CB Richard Ellis Labor Analytics Group, PwC, the Greater Waco Chamber of Commerce, Greater Dubuque Development, Haworth, Jasmax and General Services Administration were elevated for consideration for the 2011 Global Innovator's Award (GIA), which is sponsored by Genlser and Regus and will be awarded at the Fall Summit in Atlanta in November.
– Chelsie Butler
11:00 a.m. – 12:30 p.m.
Breakout Session 1
Emerging Technologies' Impact on Urbanization and the Workplace
Vik Bangia, MCR, Sr Vice President, Realogy Global Client Solutions, LLC
Peter Miscovich, Managing Director, Corporate Solutions, Jones Lang LaSalle
Gordon Feller, Urban Innovations, Public Sector Practice, CISCO Internet Business Solutions Group
If you want to know what society and the workplace will look like in 10 to 20 years, Cisco's Gordon Feller and Jones Lang LaSalle's Peter Miscovich are a good place to start. Miscovich and Feller led the discussion, "Emerging Technologies' Impact on Urbanization and the Workplace," with moderator Vik Bangia of Realogy Global Client Solutions in a Monday morning session at CoreNet Global's Chicago Midwest Summit.
Feller noted four global megatrends and how Cisco is working with cities and partners all over the world to address them. The four trends:
In terms of the workplace, the tech giant is "eating its own dog food," as Fuller said, to reduce commute times, office footprint and increasingly connect its 80,000 employees and enhance productivity. With these efforts and increasing reliability on mobility and cloud computing, Cisco intends to reduce its office space by 30 percent and cable and IT infrastructure by 50 percent with a three-year return on its investment.
From the broader corporate real estate perspective, Miscovich and JLL foresee a reduction in workspace per employee down to 50 RSF with 85 percent utilization from current levels of 200 RSF and 35 to 50 percent utilization, driven by mobility; improving voice, video and data applications; and the increasingly ubiquitous cloud. Miscovich, who hasn't had a personal office in seven years, mentioned one client who JLL is working with to eliminate locations under 25,000 square feet because such locations no longer make economic sense when people can work from anywhere. Both Fuller and Miscovich pointed out that the next generation of workers also demands an increasingly digitized, virtual and connected workplace, especially at the top end of the talent spectrum.
"Mobility and digitalization will change corporate real estate even more so than we've seen in the past 10 years," Miscovich said. "The challenge will be for the fourth and fifth generation worker to transform their skills to meet the challenges of these trends."
– Bailey Webb
11:00 a.m. – 12:30 p.m.
Breakout Session 6
Denis De Camp, SLCR, Manager of Corporate Real Estate, Akzo Nobel
Adam Meek, Principal and CEO, Brownfield Management Associates, LLC
John Greene, MCR, Regional Manager, Americas, Shell Oil Company
Tim Feemster, SVP, Director of Global Logistics, Grubb & Ellis
In an effort to provide networking and learning opportunities for the specific needs of members, the newly-formed Manufacturing and Industrial Community held a roundtable discussion and presentation session at the Chicago Midwest Summit. The diverse audience included a blend of other service providers, end users and economic development representatives.
Tim Feemster, SVP, Director of Global Logistics, Grubb & Ellis kicked off the session with his presentation, an overview of logistics market trends impacting industrial real estate. Supply chain challenges including energy costs, credit issues, and changes in lease accounting rules have caused companies to move closer to local markets and use transportation channels such as water or rail in an effort to reduce costs.
Feemster explained the old adage of "location, location, location" is no longer the top criteria in site selection. Today, it's "logistics, labor and love." Logistics includes reducing transportation costs, which generally account for more than 50% of total supply chain spend. Labor costs and labor availability need to be high on the list when selecting sites for new distribution facilities. And finally, love. There needs to be a strong, positive relationship with the local community and the local economic development team, according to Feemster.
In the future, successful supply chain strategy needs to account for fuel price volatility and increased financial and operational risk factors. Customers will expect faster lead times and infrastructure issues relating to transportation, and port logistics necessitate increased attention when addressing supply chain costs.
Next, John Greene, Regional Manager, Americas, Shell Oil Company presented his company's experience with an oil refinery expansion in California. Greene outlined the history of the Carson Distribution facility, which opened as an oil refinery in 1928 and was decommissioned in the 1990's. The expansion of the facility was an exercise in stakeholder engagement.
No longer did the "whack-a-mole" philosophy work; instead of addressing glitches as they arose, Shell took a structured approach to engaging stakeholders. Following California Environmental Quality Act (CEQA) guidelines and performing detailed impact analysis, Shell determined roughly 70 stakeholders with potential impact from the project.
After mapping out stakeholder needs, Greene's team formed an action plan to engage the various stakeholders and created a presentation to use when communicating with each. Beginning with the history of the refinery, the presentation revealed who Shell is, who they serve and what impact the refinery has on the local area. Using this engagement model and incorporating a policy of transparency, Greene was able to achieve the ever-important buy-in and support of the stakeholder community.
– Melissa Securda
2:30 – 4:00 p.m.
Breakout Session 12
The Relevance of Corporate Real Estate to Enterprise Success
Barry Varcoe, Global Head of Corporate Real Estate, Zurich Financial Services
Martha O'Mara, Ph.D., Lecturer, Exec Ed. & Special Programs Corporate Portfolio Analytics
Michael Leone, VP Global Corporate Sales, Regus
Tanya Penny, VP, Verizon Services Operations, Real Estate, Verizon
Does corporate real estate (CRE) management have an impact on overall enterprise success? That was the key question considered in a standing-room-only breakout session Monday afternoon, moderated by Dr. Barry Varcoe, Global Head of Corporate Real Estate, Zurich Financial Services.
"Corporate real estate is an industry that makes a lot of claims for itself, and sometimes a lot of bold claims," Varcoe began. "But when you look for the evidence to back up those claims, you don't find very much. Does corporate real estate really make a difference to the enterprise? Can we show linkages between what we do and better corporate performance, especially from a financial point of view?"
Varcoe, along with Dr. Martha O'Mara, Corporate Portfolio Analytics, undertook a research study in an attempt to answer this question. Joining them for the breakout session were Michael Leone, V.P. Global Corporate Sales, Regus (which sponsored the research) and Tanya Penny, Vice President Real Estate, Verizon.
The study deployed an online survey of Fortune 500 companies, gathering some 40 responses from firms based mostly in the US and UK. Six CRE practices were correlated to enterprise success measures. "We measured the correlation, but that's different than causality," Varcoe cautioned. "If you see an improvement in CRE practice, and it correlates to an improvement in enterprise performance, it doesn't necessarily mean that the improvement in CRE practice is driving the enterprise performance."
Five CRE practices (supplier management; operational and management information; a close CRE/HR/IT relationship; use of serviced offices; and continuous improvement and innovation) had a positive correlation to enterprise success. One practice – use of capital release strategies – actually had a negative correlation to enterprise success. "Perhaps the companies that deployed sale-leaseback and similar monetization strategies were already in trouble," someone ventured.
Summing up the results of the survey, Varcoe again posed the key questions and provided the answers:
– Tim Venable
2:30 – 4:00 p.m.
Breakout Session 14
Young Leaders: The Future of Workplace and How We See It
Erica Chapman, Former Director of Corporate Real Estate, adidas Group
Samantha Martz, Real Estate Strategist, Consulting Practice Area, Gensler
Michael Griffiths, MCR, Director, Corporate Real Estate Strategy, Visa Inc.
Michael Pereira, Principal Business Analyst, Corporate Real Estate, Symantec
Anthony Ravitz, Sustainability Team Lead, Real Estate and Workplace Services, Google
So what does the workplace of the future look like in the eyes of today's young leaders and what role will technology, sustainability and social interaction play? Those were just a few of the topics that were discussed in Monday's session, as it was standing room only for the "small army" of CoreNet Global Summit attendees that came together to hear what the panel had to say.
Erica Chapman moderated a panel of young CoreNet Global leaders that included Samantha Martz of Gensler, Anthony Ravitz of Google, Michael Pereira with Symantec, and Michael Griffiths with Visa. All panelists shared their opinions and experiences on where they believe the workplace of the future will take us in specific areas.
As it relates to the workplace, Samantha Martz shared that today's young leaders tend to be:
Michael Pereira talked about the future of technology in the workplace and what is it exactly that young leaders believe the workplace should offer. "Those coming out of college expect 'instant gratification' as it relates to technology. For example, they expect the workplace to provide hi-speed wi-fi and a virtual desktop interface so they can work anyplace at anytime on any machine," he said.
Michael Griffith spoke of how all these topics relate to corporate real estate (CRE). "We, as CRE leaders, have a unique opportunity to step up to the plate and raise awareness and develop strategies so we can have these types of conversations in our organization."
He also discussed how CRE can stay "relevant" by making sure CRE defines the new paradigm, so it's not the other way around; experience and explore the new world in order to build credibility, and not just "live in the now," but embrace the what-ifs and actually plan for it.
Key take-a-ways from the four presenters include:
– David Heaton