How Should the C-Suite View Operational Real Estate?

This is the first in a three-part series of articles exploring the key insights from CBRE’s recently published report entitled “C-Suite Perspectives: Empowering Business Through Real Estate."

The report provides an intriguing and informative view of the boardroom and its view on its corporate real estate assets. What is clear from the report is that there has been a significant shift in how top executives perceive real estate not just as a cost centre but as a strategic asset with untapped potential to drive business value.

Leaders across industries are increasingly recognising that real estate decisions influence operational efficiency, employee productivity, and overall organisational performance.

This article explores how the C-suite executives should view operational real estate and it explores their current perspective on the role of real estate within their businesses.

The second article will be published next week and will look at What C-Suite Leaders Want From Their Real Estate. It will highlight the report's findings on their priorities, expectations, and desired outcomes.

The third article in the series will focus on How the C-Suite Executives Prefer To Manage Their Real Estate it will unpack the C-suite's preferred strategies, models, and approaches to real estate management.

About the Survey

CBRE’s research was conducted in the second half of 2024 and gathered insights and perspectives from leaders in manufacturing, financial services, technology, healthcare, and retail. The respondents were 252 C-suite executives representing companies with a minimum of 3,000 employees and spread evenly across a diverse range of roles.

In these articles, we will unpack these insights and explore what they mean for the future of workplace strategy and facilities management.

Let’s get on with it.

How Should the C-Suite View Operational Real Estate?

Corporate real estate (CRE) has long been viewed as a necessary operational expense an essential but often undervalued aspect of business strategy. However, insights from CBRE’s inaugural C-Suite survey indicate a significant shift in how executives perceive real estate’s role in achieving business success.

Rather than being a passive cost centre, real estate is now seen as an active enabler of business strategy, corporate culture, and organisational performance.

3 Key Takeaways

94% of C-suite executives consider real estate essential to achieving business objectives: This reflects a growing acknowledgement that the physical workspace is not just an operational asset but a strategic tool that influences productivity, talent attraction, and brand identity.
50% of C-suite executives believe real estate will become even more important over the next three years: hybrid work models, sustainability priorities, and evolving employee expectations mean that real estate is expected to play an even greater role in business strategy and decision-making going forward.
83% of executives say real estate is critical in signalling company culture: The office environment serves as a tangible representation of company values, influencing how employees and external stakeholders perceive an organisation. A well-designed, purpose-driven workspace can reinforce corporate identity, enhance collaboration, and foster a strong sense of belonging.

Real Estate as a Strategic Tool

1. The C-suite views real estate as a key strategic tool to achieve core objectives.

Corporate real estate (CRE) is no longer seen merely as a functional necessity or an operational cost; it has evolved into a key enabler of business success.

C-suite executives now recognise that real estate decisions directly impact organisational performance, workforce productivity, talent attraction, and corporate identity.

According to CBRE’s C-Suite survey:

94% of executives consider real estate vital for achieving core business objectives. This highlights a fundamental shift in perspective, where real estate is seen as an active driver of success rather than a passive overhead cost.
83% believe real estate plays a critical or very important role in shaping company culture. Workplace environments influence employee engagement, collaboration, and a company's ability to foster innovation, making real estate a direct reflection of organisational values.

2. The C-suite sees real estate becoming more important over the next three years.

C-suite leaders increasingly recognise that real estate is not just an operational necessity; it is a strategic asset with the potential to drive business value, enhance workforce engagement, and support long-term growth.

As organisations adapt to evolving workplace trends, economic shifts, and technological advancements, real estate is becoming a critical tool for enhancing efficiency, fostering collaboration, and reinforcing corporate identity.

According to the survey:

63% of CEOs and COOs believe real estate will become even more important over the next three years, acknowledging its role as a generator of business value rather than just a cost centre.
53% of executives say real estate has already grown in importance over the past three years, reflecting its increasing influence on company strategy.

3. Are current real estate portfolios delivering to their strategic potential?

While corporate real estate (CRE) is increasingly recognised as a strategic driver of business success, many executives believe their current real estate portfolios are not fully optimised to deliver maximum impact. Despite significant investments in office spaces, facilities, and workplace strategies, there is a gap between real estate’s potential value and its actual contribution to core business objectives.

According to the survey:

72% of C-suite leaders believe their corporate real estate portfolios contribute positively to achieving business goals.

Call to Action: How Leaders Can Unlock More Value from Real Estate

Define Real Estate’s Role in Business Strategy
- Identify how CRE can directly support core business priorities such as talent retention, operational efficiency, and innovation.
- Ensure real estate decisions align with long-term company objectives rather than short-term cost considerations.
Monitor, Measure, and Optimise Performance
- Implement key performance indicators (KPIs) to track the impact of real estate on productivity, employee experience, and financial performance.
- Use workplace analytics to assess space utilisation, energy efficiency, and workforce engagement to drive continuous improvement.
Adapt and Innovate for the Future
- Embrace flexible, tech-enabled workplace solutions that support evolving workforce needs.
- Consider how sustainability initiatives can enhance both real estate efficiency and corporate ESG commitments.

Final Thought: Take Action Today for a Competitive Advantage Tomorrow

Real estate is no longer just an operational necessity; it is a key lever for business success. By proactively aligning CRE with business goals, leveraging data for better decision-making, and continuously optimising workplace strategies, C-suite leaders can transform their real estate portfolios into a powerful driver of organisational performance.