1. SPP Community Session- Strategy and Portfolio Planning for Corporate Real Estate

2. SPP GoalsPast ActivitiesNext Steps Gathering Best Practices Survey end users Started detailed interviews Interview selected survey respondents Summarize survey results & interview data Sharing Best Practices Distribute survey results Atlanta Summit Panel Discussion Webinars on Strategic Planning Activities Advancing Best Practices Analyze survey and interview results Benchmarking Strategic Planning Activities and Next Steps 2

3. SPP Benchmarking Study 3 A simple question: What are CoreNet End-Users doing in their strategic spaces? Starting Point

4. SPP Benchmarking Study 4 Design a survey Corporate Info : Portfolio size & complexity CRE department size Data accessibility Strategic Plan Info : Scope / Composition / Time Horizons Accountability / Approvals Corporate Alignment / Driver Metrics Success Stories / Challenges Interviews Vet survey questions with End-Users and Service Providers before distribution Multiple iterations until survey is finalized Baseline Portfolio Complexity Staffing, and Data Baseline Planning Practices Correlational Analysis Case Studies Successes & Challenges End-User Interviews Step One

5. SPP Benchmarking Study 5 Step Four Follow-up with In-Depth Interviews Standardized Interview Format / Obtain Comparative Qualitative Data Obtain details on look and feel of strategic plan Confirm metrics and goals Delineate management approval / interaction process Obtain success stories / understand challenges “How to Succeed” knowledge delivery via Webinars Five Interviews done to date Goal: 15-35 interviews 2012 Goal: Webinar Presentations to roll-out results

6. SPP Benchmarking Study 6 Step Two Distribute Zoomerang Surveys Chapter / Group Participation : New York No. California Chicago SPP End Users Atlanta Carolinas Excellent participation: 76 End Users

7. SPP Benchmarking Study 7 Step Three Preliminary Results 0-5 Portfolio SF (Millions) 5-20 20-50 50+ 25-100 <25 >700 300-700 100-300 Portfolio Locations (No. of Sites) Corporate End-Users deal with complex portfolios 29% 16% 9% 18% 24%  63% have more than 100 locations  47% have more than 5 million SF 23% 16% 45% 8%

8. Responsibility and Approval Responsibility for strategic plans differs by organization. Less than 50% of organizations require formal approval by business line management or senior staff external to CRE. 8 Is your real estate strategy document formally approved by senior management? What group is responsible for real estate strategic planning? Other category does not include service providers or space planners.

9. Strategic Planning Drivers Business alignment is the primary driver for 60% of respondents Cost reduction is the primary goal for 32% of respondents. Only 42% of plans have explicit cost saving targets 9 What is the primary driver for your real estate strategy? Does the approved strategic plan have established cost savings targets?

10. Strategic Planning Metrics 72% consider real estate cost per person a primary driver. Less than half compare real estate cost to enterprise revenues or costs 43% of respondents are including sustainability metrics in their plans 10 Which metrics are the primary drivers for CRE strategy / performance? Are sustainability metrics part of your organization's real estate strategic plan?

11. Long-Term Plans and Documention Just over 60% have written plan that includes more than performance goals and guiding principles. The largest share of respondents complete plans for 3-5 years. 11 Do you have a written plan that includes more than annual performance goals and guiding principles? If you have a written plan that includes more than annual performance goals and guiding principles, what is the number of years for the planning horizon? Percentages are share of total resondents

12. Data Challenges Most respondents have access to basic real estate data. More than half have headcount forecasts that are directionally accurate for 1-3 years. Is that sufficient for planning? 12 What information is tracked by CRE? Do you have access to directionally accurate ( + / - 20%) headcount projections? If yes, for how many years?

13. Round Table Discussions Current research task forces -Discussion of current activities Other topics –What are your challenges? –Best practices - what resources have you found most beneficial? –What could be next steps for this topic? 13