CoreNet Global European poll: Sustainability a key driver for future real estate development

CoreNet Global European poll: Sustainability a key driver for future real estate development

Press Release
September 21, 2004

BUDAPEST – Tuesday 21 September 2004 – An informal survey carried out by CoreNet Global among their European members has revealed that an overwhelming 94% of respondents consider sustainability to be an important factor for the future of real estate development. While 41% of those consider sustainability to be very important, the other 53% concur that it is a key factor, but that to date it has not caught on in the mainstream consciousness.

The rising awareness of the importance of sustainable buildings supports the recent findings of the Corporate Real Estate 2010: Sustainability and Corporate Social Responsibility report which indicates that while a desire for more environmentally friendly buildings is broadly accepted among occupiers, there is little incentive to take sustainable buildings while rents are at a premium. However the report predicts that premium rents are likely to disappear by 2010 in Europe as sustainability grows into a mainstream business driver, and sustainable specifications become standard in new corporate buildings.

The survey was commissioned to coincide with the CoreNet Global European Summit in Budapest. The electronic questionnaire was designed to gauge member’s views on a variety of issues that may impact on the Corporate Real Estate profession in Europe – from the recent opening up of the EU to ten new member countries, to questions of how robust the IT infrastructure is in Europe.

An overwhelming 88% of respondents believe that all of the newest members of the EU will be able to compete for economic development on a level with the established members. The reasons given for the confidence in the new members countries ranged from the subsidies and lower skilled labour costs offered through to the specialized niches operated by some countries that give them the competitive advantage. Other respondents indicated that the new countries will succeed because of their willingness and passion to exploit the new opportunities open to them, and that they are prepared to demonstrate greater innovation and take more calculated risks than some of the more ‘comfortable’ and well established member countries.

However, a minority of respondents felt that the new member countries would not be able to compete, citing that many of them do not currently have enough political and economic stability.

Of the newest member countries in the EU, an overwhelming majority of respondents consider the Czech Republic, Hungary and Poland to have the climate most conducive for future real estate development. Countries that are the least conducive, in the opinion of respondents, include Cyprus, Latvia, Malta and Slovenia.

The Czech Republic, Hungary, Malta and Poland were also widely regarded as having the most advanced market-based economies from among the new member countries.

Finally, CoreNet Global members in Europe were asked their opinions on the state of each of the new EU member’s IT capabilities, given that a robust IT infrastructure is an essential element of expansion and relocation decisions. The majority of respondents again considered the Czech Republic, Hungary and Poland to be strongest, but Slovakia also scored impressively, with more than 88% of respondents considering their capabilities to be good-to-excellent.

Ends

CoreNet Global members manage $1.2 trillion (US) in worldwide corporate assets totaling 700-billion square feet of owned and leased office, industrial and other space. With 7,500 members representing large corporations around the world, CoreNet Global (www.corenetglobal.org) operates in five global regions: Asia, Australia, Europe, Latin America and North America, including Canada. Following the European Summit, please contact

Tony Nokling on 00 44 207 908 3215
or email tonyn@tamesis-pr.com