Atlanta - November 25, 2002 - Corporate real estate managers at large corporations will continue to downsize their portfolios over the next six months according to a quarterly survey from CoreNet Global. According to the survey, 56 percent of the respondents are planning a net decrease in the amount of office space kept in their portfolios. Just 15 percent are planning a net increase.
Users of industrial space also reported planned decreases, with 30 percent planning to reduce their portfolios and just 13 percent planning to add more space. However, 57 percent indicated that their companies would maintain the same amount of industrial space. These trends have not changed noticeably since CoreNet Global began surveying corporate real estate end users at the beginning of 2002.
In addition, nearly 30 percent of the survey respondents indicated that between 10 and 30 percent of their portfolios is so-called "shadow space," excess space being held for future use or vacant space no longer needed.
According to the quarterly survey, security also continues to be a major issue. Eighty-five percent of the respondents are still concerned about terrorist threats to workplace security, and more than three quarters of respondents are maintaining the heightened security measures they implemented following September 11, 2001.
"The current economic and political uncertainty as well as the soft market conditions have clearly affected corporate real estate, as executives continue to try to unload excess space or maintain a more conservative portfolio," said Prentice Knight, Vice President, Discovery, CoreNet Global Learning, the education arm of CoreNet Global.
The survey was administered November 6, 2003 through December 3, 2003 and was distributed to 1000 corporate real estate executives and asset managers at large corporations. It yielded 113 responses. Thirty-eight percent of respondents have a portfolio of between 1.5 million and 10 million square feet; 22 percent had a portfolio of between 10 million and 30 million square feet; and 15 percent had a portfolio of greater than 40 million square feet.
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 7,000 members representing large corporations around the world, CoreNet Global operates in five global regions: Asia, Australia, Europe, Latin America and North America, including Canada.