TECH'S BIG IMPACT
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|No surprise, but technology is having dramatic effects on CRE usage. That was the message yesterday from a CoreNet Global Summit panel focused on what the future workplace will look like, featuring Teknion's Kay Sargent, Cisco Systems Relina Bulchandani, and Jones Lang's Peter Miscovich. Kay says that 77% of companies surveyed say they are moving toward open workspace with fewer individual offices, and 46% are focused onremote working. And that's leading to less of a need for SF. Formerly, a company would on average have 120 desks for every 100 employees. Today, Kay says, that ratio is more like 60 desks for every 100 employees: ?That's really where the savings take place.?|
|Desks are one thing, but Peter spells out the changes in SF. In the '80s, companies leased an average of 500 to 700 SF/person (most of for our hair), and utilized two-thirds of the space. Today, that has been reduced to 200 SF/person with at most a 50% utilization rate. By 2015, Peter predicts it will be 50 SF/person with 85% utilization rate. So, how are people working? Remotely, especially with the adoption of smart phones and mobile tech. By 2020, Peter says 6 billion people will have mobile phones. ?People will have a mobile phone before they have the electric light.? To see the entire discussion, and other CoreNet Global interviews, check out JLL'sYouTube page.|
|We also got a chance to hear Coca-Cola's real estate guru Matt Fanoe chat about the science behind his profession yesterday. Matt, above on a panel on what to do with unused corporate real estate, emphasized being proactive with local communities not only to work with municipalities on the ?highest and best use? of any resale of the property, but also the citizens, many of whom are likely affected by a plant closure. ?Part of that is protecting the brand,? Matt says.|
|And what would be a global summit without the after parties? Here's Calhoun-based Mannington Commercial's Rick Morris, Russ Neese,and Mark Grund, who just received an assignment to do thecommercial flooring for NuStar's 350k SF office in San Antonio. The trio were celebrating a belated Oktoberfest at Der Biergarten at STATS at a party hosted by JLL.|
|We also popped over to the Wetbar at the W Hotel downtown for Newmark Knight Frank's party, where we encountered John Poulus, Catalyst Development's Stephanie Pater, NKF's Andrew O'Brien, and Kirk Adams. Kirk tells us he is representing QBE Insurance in an 80k SF RFP in the Cumberland Galleria submarket, potentially leaving 210 Interstate West.|
|NKF's Andrew O'Brien, Ilona Berman, and Jack Stokes at the Wetbar party. Andrew says Jack, a financial analyst, is a "straight balla." We don't know what that means, but hopefully something to do with money. Or baseball.|