More than half the corporate executives surveyed favor talent availability over real estate cost as their top strategic consideration when making real estate location decisions, reported CBRE Group, Los Angeles.
CBRE's Americas Occupier Survey said half of the 229 executives interviewed called talent availability their foremost consideration, while less than one-third named real estate cost as their top consideration in office-location decisions.
"With talent retention and cost management both so highly valued--yet clearly in conflict when jointly pursued through traditional means--it is more important than ever to explore new and innovative solutions," said Julie Whelan,
CBRE Americas head of occupier research. "Today's corporate real estate executives must balance the new workforce desires with a realistic workplace strategy that brings talent and expense management into simultaneous focus."
CBRE reported executives increasingly view workplace location strategy as both a critical employee attraction and retention strategy, and a method to control costs. "Further, of survey respondents, 85 percent cite space efficiency and restructuring as a top strategy for reducing occupancy costs," the report noted.
The executives surveyed also indicated that their labor forces--now more generationally and ethnically diverse than ever--strongly value quality "work experience," specifically the workplace's functionality, freedom of work style and sense of community.
"Connectivity to the people and places needed to get the job done, and freedom of choice in choosing when and how to work are the primary preferences of today's labor force...