From our Accelerating Toward Tomorrow Thought Leader Partner, CBRE.

A comprehensive analysis of contract structures for real estate and facilities outsourcing models

The Corporate Real Estate (CRE) landscape is anything but simple. It involves managing significant expenses while minimizing operational risk. To manage this complexity, CRE leaders often turn to outsourcing providers. But with multi-million-dollar contracts on the line, one critical question remains: are these partnerships being structured to deliver maximum value?

As the first of its kind in the industry, CBRE Institute’s report on outsourcing trends provides insights on trends through the eyes of 65 CRE executives at major global corporations.

From financial advantages, industry best practices, and operational consistency to aligning internal stakeholders and managing risk, this report is a must-read for CRE leaders looking to stay ahead of the curve.

Contact us to discuss how this research and benchmarking can inform and elevate your current and future contracting efforts.

Key Trends:

• Financial benefits are not the only driver: Cost savings are the primary reason for outsourcing, but operational consistency and access to best practices and innovation are close behind.
• The C-Suite is keenly interested: While CRE and Procurement departments are most active in outsourcing decisions, C-Suite involvement is on the rise.
• Pricing isn’t the biggest challenge: Risk and performance issues outweigh price when it comes to contract challenges. In fact, CRE leaders state that it is more difficult to gain internal alignment than to achieve pricing alignment with their service provider.
• Year one focuses on service impact and consistency: While financial goals are always important, CRE leaders prioritize service impact and consistency in the first year of an outsourcing contract – recognizing the time needed for transition and implementation.
• Total Cost of Occupancy (TCO) arrangements are trending: Nearly half of CRE leaders use TCO arrangements, with "fee at risk" being the most common approach.