The transition from traditional Facility Management (FM) to Corporate Real Estate Management (CREM) is not just a trend but a testament to the broader digital transformation reshaping industries. As per a report by Deloitte, 64% of corporate real estate leaders are focusing on improving user experience and workspace productivity through technology. With businesses expanding and diversifying, the integration of digital tools in managing real estate assets is no longer an option but a necessity.
Let’s explore this evolution.
Traditional Facility Management: The Foundation
Facility Management has been the backbone of ensuring the optimal functionality of a built environment, handling everything from maintenance to space optimization. However, with the Global Facility Management market expected to reach USD 1.42 trillion by 2025, there’s a pressing need for a more integrated approach to keep up with the growing demands.
CREM: Next Step in Asset Management
Corporate Real Estate Management (CREM) is a holistic approach that aligns real estate assets with broader corporate strategies. With the infusion of digital tools:
- Data-Driven Decisions: Modern CREM platforms utilize data analytics, with 73% of organizations emphasizing the importance of analytics in corporate real estate strategies, as per a JLL survey. This approach allows for proactive management and cost reductions.
- Integration with Broader Corporate Strategy: CREM ensures that real estate decisions are in sync with business goals, be it expansion or diversification.
- Sustainability and Compliance: With 55% of global respondents in a CBRE survey considering sustainability in their investment decisions, CREM tools are pivotal in achieving sustainability targets and ensuring compliance.
Digital Pulse in CREM
Technological advancements are the linchpins in the FM to CREM transition:
- IoT and Smart Buildings: By 2026, the global smart building market is projected to reach USD 121.6 billion, driven by demand for energy efficiency, IoT and PoE solutions, increasing focus on Net Zero targets.
- AI and Predictive Analytics: AI in CREM can lead to a 15% reduction in facility maintenance costs, as it offers predictive insights on potential component failures.
- Cloud Platforms: 68% of real estate leaders believe that integrating cloud technology is crucial for their operations, as per a KPMG report. These platforms ensure seamless collaboration among stakeholders.
Human Element in CREM
Despite the technological advancements, the human element remains crucial:
- Training and Skill Development: As CREM integrates more digital tools, there’s a growing need for training programs to upskill the workforce, ensuring they can harness these tools effectively.
- Stakeholder Collaboration: Effective CREM requires collaboration between various stakeholders, from facility managers to top-level executives, ensuring everyone’s on the same page.
- User Experience: At the end of the day, the goal of CREM is to enhance the user experience, ensuring that employees and other stakeholders have a conducive environment to work and interact.
Global Trends & Future Predictions
As CREM gains traction, global trends are emerging:
- Remote Work and CREM: With the rise of remote work, especially post-pandemic, CREM strategies will need to factor in reduced office space usage and increased virtual collaboration tools.
- Green Buildings: There’s a growing emphasis on green and sustainable buildings, with CREM playing a pivotal role in ensuring facilities meet these standards.
- Flexible Workspaces: As businesses become more dynamic, there’s a demand for flexible workspaces that can adapt to changing needs. CREM will be at the forefront of designing and managing these spaces.
The evolution from Facility Management to Corporate Real Estate Management is a reflection of the changing dynamics of the corporate world and the technological innovations supporting it. As businesses aim to optimize their assets and align their strategies, CREM, bolstered by a digital-first approach, stands out as the way forward. Clean India Technology Week 2023 will further spotlight this transformation, highlighting the innovations and strategies that will shape the future of real estate management.