During the last 10 years, data centers have become a prevalent part of today's society and a critical component to most companies' business and real estate portfolios. Data centers are the linchpin to powering modern business and the disruptive models that provide immediate access to almost anything, including sharing and viewing photos of family and friends, ordering on-demand automobile transportation or streaming entertainment content, and, best of all, connecting people all over the world.
CFOs and other finance executives are encouraged to consider and prepare for the many challenges making their way into corporate real estate (CRE). Intentionally losing a reliance on spreadsheets in favor of digital tools, adopting automated technology to manage changes in financial accounting procedures, and incorporating Internet of Things (IoT) and virtual reality (VR) technology to more effectively manage physical space are the three primary areas of focus in this short introduction to the growing importance of technology in CRE finance.
The real estate strategy behind Cubic Corp.'s modernization of its corporate headquarters arose from the desire to consolidate three San Diego sites into one campus and increasing density by 25 to 30 percent. The objective: deliver a work environment respecting cost and shareholder value, while creating a modern and efficient workplace. By consolidating operations, Cubic would be able to streamline operational processes, improve communication and cross-pollination, and renew and emphasize its brand and cultural identity.
A new study released by CoreNet Global and Cushman & Wakefield indicates co-working is a major trend for the workplace. More than half of corporate real estate executives are considering co-working options for employees.
Everyone is talking about BMC's brilliantly quirky new Tel Hai offices in northern Israel. From the outside, it is nothing special: an industrial warehouse with scenic views of the Golan Heights. Step inside, however, and you are transported through the looking glass into a polychromatic playground for digital natives.
Some of today's successful companies like Uber, Alibaba, Airbnb, Twitter, Facebook and Google are reshaping entire industries with digitally enabled business models that are fast and cost-effective to scale up. They break through traditional market barriers, bring down monopolies, and often monetize others' building assets without bearing the costs of acquiring or operating them themselves.