News
STRATEGIES
December 17, 2008
| The financial crisis has left no stone unturned, including labor, recruitment, channel sourcing and geographic placement, which have all affected corporate real estate. We stopped by a CoreNet Global NYC-hosted luncheon yesterday at the Time Life Building to hear about helpful strategies to get through this market from KLG founder Doane Kelly and Duff Capital Advisors co-CEO Eileen Murray. |
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| Doane and Eileen with CresaPartners principal Marcus Rayner (also CoreNet Global NYC’s programs chair). The good news: if this recession follows historical trends, it will be shorter in duration than past recessions, and the rally will come more rapidly. The not-so-stellar news: thanks to higher leveraging, headcounts, compensation and occupancy costs over the past five years, recovery is going to be tough. Geographic workforce changes will also present challenges. Their advice for real estate professionals: represent a broader perspective than square footage and become part of a cross-functional team as companies look to cut costs; get real about the recovery and how you manage real estate by not being overly optimistic; and put every option on the table, even if painful. People are looking for solutions, and real estate should be a partner. |
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| Merck’s Bill Mayo, Jones Lang LaSalle’s Cindy Froggatt and Universal Moving & Storage’s Robert Koncelik. Bill works for the pharmaceutical giant’s global real estate division, which is looking to reduce its global footprint through property disposition. Unfortunately, transactions are pretty much at a halt, but he’s hoping they’ll improve by the latter part of ’09. |
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| Take note, Bill: Janko Rasic Architects’ Janko Rasic (with Pfizer’s Rick Davis and Adam Hoy) says there will be real estate business next year, but we all need to be patient. There was plenty of Big Pharma at the lunch; if one of them makes a patience pill, they’d make a killing in today’s market. |
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| Merck’s Tim Bender, Milrose Consultants’ Louis Milo, Herman Miller’s Gina Rizzo (also CoreNet Global NYC’s chair), Milrose’s Jaclyn DiRenzo and Knoll’s Christine Chavez. Louis’ crystal ball was more detailed: he expects real estate will hit bottom no later than April; we’ll experience a flat third quarter; and then return to a positive leasing market by year end. |
