"Studies show that amongst Fortune 500 companies, real estate typically accounts for about 20% to 30% of total assets and about 5-15% of operating expenses. According to the PWC Study, 79% of the executives identified real estate as a non-core and very fragmented function across business units. That means that real estate departments are seldom an integral part of any strategic business plan."
PWC Study
"In a study sponsored by Price Waterhouse Coopers – Global Top Decision Makers Study on Business Process Outsourcing – of 304 major multinationals in 14 countries, 65% of the executives interviewed identified real estate as one of the most profitable areas to outsource in the future."
Price Waterhouse Coopers – Global Top Decision Makers Study on Business Process Outsourcing
"By 2004, 15% of the global 2000 market will be serviced by integrated workplace external service providers that will host most employees needs, such as occupancy, connectivity and general services."
Workplace Transformation: Gartner Research, 2001
"There is real danger of comparing the price per square foot or square metre of a standard lease with that of a serviced office. What is often not made transparent is that the (conventional lease) price excludes many of the costs that ultimately must be borne by the occupier, such as facilities management and reception, but which are included in serviced offices. A further complication is that capital costs of equipment and furniture may not be fully taken into account when making the comparison. (…) The second reason is that, in the case of a serviced office, risks have been transferred from the occupier to the provider because of the short-term commitment to, and instant availability of, the space. It is this risk transfer element which is much more difficult to price."
The Cost of Choice: How Corporate Real Estate Managers Evaluate Business space Solutions Virginia A Gibson, University of Reading 2000 4-5.
"Serviced offices are now even more cost–effective for longer periods, for larger numbers of people and over a wider geographic spread, compared with five years ago, according to new research by the Chartered Institute of Purchasing & Supply (CIPS) in the United Kingdom entitled The True Cost of the Flexible Office (2001)"
Chartered Institute of Purchasing & Supply (CIPS) in the United Kingdom entitled The True Cost of the Flexible Office (2001)
"Our research clearly demonstrates that serviced offices space has now become a truly cost-effective option in all scenarios. Whereas five years ago our research revealed it was only really cost-effective in relatively low cost areas, such as Birmingham, or for short periods of time, this new research proves it can now achieve worthwhile long term savings too."
Carolyn Munton CIPS
Research shows that more than two thirds of the Fortune 500 companies outsource their workplace requirements. And for good reasons:
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