This document discusses trends in alternative workplace strategies and flexible work arrangements. Key points include: 1) Many companies are allowing more employees to work remotely using technologies like VPN and not requiring workers to be in the office. 2) A 2010 study found that within 5 years, over 40% of employees at many organizations could be utilizing flexible workplace arrangements. 3) The author's clients are reducing their office footprints significantly and consolidating locations to cut real estate costs by $60-100 million annually. 4) Successful flexible strategies require changes to both workplace policies and work styles, and a "Place Strategy" to organize how work gets done across space and time.

1. Logo | CLIENT NAME
Rethinking Office
Martha (Marti) O'Mara PhD, CRE
martha@cpanalytics.com
ULI Spring Meeting, Charlotte, North Carolina
May 9, 2012

2. What happened?? Who let the workers out?
•A new tech-infused generation of worker
•More teams, project work, networks, subject
matter experts
•VPN – the silent killer app
•Not waiting for the company to provide the
technology … IT departments can’t control it
anymore…. Yuk!
They are out of the office and they ain’t coming back!
From corporate real estate strategy to
PLACE STRATEGY ™
“Organizing your company in space and time, utilizing human talent
and technology to its highest potential.”
So, what is the role of face-to-face communication in building
and sustaining competitive advantage?
“
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3. 2010-11 Study: AWS utilization expected to greatly increase
>40% of the
workforce
13%
Alternative workplace strategies (where a range 20% -40% of
the
of flexible workplace settings are provided for an workforce
< 10% of
workforce
15%
employee’s work in places that are not assigned 43%
individually) are available for:
10% -20% of
the
workforce
29%
“Within the next five years (2015) what
< 10% of
proportion of employees at your organisation workforce
18%
could be utilising alternative workplace > 40% of
arrangements.” the
workforce
37% 10 -20% of
the
workforce
20%
20 -40% of
the
workforce
25%
Corporate Real Estate Impact on Enterprise Success. 2010 survey of 40 global corporations
representing 3.6 m people supported and 2.2 billion square feet
http://www.regus.presscentre.com/White-Papers/Corporate-Real-Estate-Impact-on-Enterprise-Successs-20de.aspx
© 2012 Corporate Portfolio Analytics All Rights Reserved Do not reproduce without permission. 5/18/2012 3

4. What We Are Seeing
Our multi-year clients:
Our clients are:
• 32 msf national portfolio 2012 goal of 20% portfolio reduction; selling 3-4 msf owned and 2 msf
sublease.
• Consolidating 6 msf portfolio to 3.5 msf in major southern city, not renewing 75% of leases.
• Eliminating over 50% of sales and service locations.
• Rightsizing global office portfolio to achieve $60-100 million annual savings.
• Federal government: OMB not approving leases over ~155 usf per FTE, mandated
implementation of “telework”, sustainability goals
• Technology companies – 100 – 150 rsf/fte is standard practice
… Overall, 40% too much real estate
© 2012 Corporate Portfolio Analytics All Rights Reserved Do not reproduce without permission. 5/18/2012 4

5. Rethinking the Office: Getting the Story Straight
Not “telework”
Not fuzzy slippers
Not all “butts in boxes”
Space
Time Individual Space Group Space
• “cave” Individual • “commons”
Pre-assigned • “personal harbor” office • “group address”
• benching/clustering • flexible conference rooms /libraries
• sequential “shared” offices • lounges, nooks
• hoteling • same options as above
Assigned as • “just in time” offices • contingent spaces: hotel rooms, client
needed • telecenters / satellite offices premises, etc.
© 2012 Corporate Portfolio Analytics All Rights Reserved 4/25/20125
Do not reproduce without permission. 5/18/2012 5

6. “Many Ways to Skin a Cat”
Workplace
Actions
Getting to Lower Cost/ Higher Cost/
150 usf/fte Change More Change
Work Style
Actions
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7. “Marti – isms” About the Rethinking Office
1. No more “butts in boxes”. Ever.
2. Most everyone’s life runs better if they can work from home one day
a week.
3. 150 is the new 250.
4. If you don’t have to go to the office, what is going to make you want
to go to the office?
5. Organizational structures and managerial practices seriously lag the
revolution in mobile work. A Place Strategy™ is required.
6. As information becomes ubiquitous and immediate, personal
relationships and networks become more important – how to interpret
and act on information.
7. Never let anyone over 40 make a real estate decision.
© 2012 Corporate Portfolio Analytics All Rights Reserved Do not reproduce without permission. 5/18/2012 7