The document summarizes key trends from a Japan corporate real estate survey of 31 respondents. Three main trends are identified: 1) enhanced demands from senior leadership for CRE to boost workplace productivity; 2) a mismatch between the demands placed on CRE and its capacity to deliver, risking underperformance; and 3) forward-looking CRE teams stake winning partnerships through outsourcing and collaboration. No CRE leader feels fully equipped to meet rising leadership demands due to structural constraints. However, collaboration between CRE and other functions is already surprisingly intense and expected to grow further.

1. Changing Winds Ahead
Japan Corporate Real Estate Survey 2013 Overview

2. 1 Japan survey
31 responses
3 trends
1
31
3

3. Trend #1 Enhanced Demands from Senior Leadership
Present CRE with Fresh Opportunities

4. Enhancing productivity is the new
rationale for CRE…
…with workplace productivity
grabbing attention of CRE and
senior leadership alike
4
Question: What produciivtiy outcomes is your organization expecting the CRE function to deliver?

5. Productivity is now deeply ingrained in the day-to-day
focus of CRE teams in Japan
5
Senior leadership expectations for CRE to deliver respective productivity outcomes
Question: What produciivtiy outcomes is your organization expecting the CRE function to deliver?

6. 6
Extent of change in the global corporate
workplace as seen by Japan CRE leaders over
the last three years and envisaged over the
next three years
Question: To what extent has your corporate workplace transformed over the last three years and next three years?
Workplace productivity is being addressed through
CRE but more could be done

7. 7
... CRE teams are also required to
build or expand platforms for
businesses stats

8. 3.2 looking to the future
evolution of portfolio
“Don’t Know” and “Not Applicable” have been
removed for analysis purposes
Questions: C20 / Total n=536
Note - Net growth is calculated as the percentage of respondents who expects portfolio size to increase minus the percentage of respondents who
expects portfolio size to decrease. Shaded area indicates average net growth rate across the region
The select growth markets that Japan companies are
expanding in…

9. … are also the world’s least transparent real estate
markets
Source: Jones Lang LaSalle Global Real Estate Transparency index (GRETI) 2012

10. 10
Level of Risk Aversion in Japan since 2010
Question: Compared to 2010, how would you rate your business’ attitude toward risk (appetite for growth versus operational risk)?
Slower domestic growth triggers overseas expansion in
spite of risk aversion

11. 11
Aftermath of 2011 Japanese Earthquake and Tsunami
Question:
Which of the following changes have occurred as a result of the 2011 Japanese earthquake/tsunami?
To what extent did your portfolio suffer as a result of the 2011 Japanese earthquake/ tsunami?
Natural hazards are a consideration that cannot be
overlooked, especially in emerging markets

12. Trend #2 Mismatch between demand
and capacity results in under-
performance risk

13. 13
No CRE leader in Japan feels well-equipped to meet all
demands being placed upon them
Do CRE Executives in Japan Feel Well-equipped to Address Senior Leadership Demands?
Question: How well-equipped do you feel to meet the demands of the senior leadership?

14. 14
Structural constraints present a significant risk to
addressing leadership demands
Types of Constraints Undermining the Strategic Position of CRE
Question: Is your internal procurement team actively involved in CRE?

15. 15
Many Japanese companies still lack a dedicated CRE
function
Where Does the Global CRE Head Reside?
Question: Within what department does the global head of CRE reside?

16. 16
Less elevated reporting lines dilute strategic alignment
Reporting Lines for the Global Head of CRE
Question: To what level of the organization does the global head of CRE currently report?

17. Trend #3 Forward-looking CRE teams stake on winning
partnerships

18. Despite CRE outsourcing gaining momentum, Japan is still
lagging behind global peers…

19. 19
Companies in Japan are looking beyond simple tactical out-
tasking with service providers
Attitudes Toward CRE Outsourcing
Question: Please rate your current attitudes toward outsourcing on a scale of 1 to 5, where 1 means that outsourcing represents a tactical
transaction, mainly with the lowest cost supplier, and 5 means that outsourcing represents a strategic relationship.

20. 20
A broader range of solutions are being sought, creating new
models, interrelationships and points of engagement
Delivery of Major CRE Services
Question: How would you best describe the delivery of the following CRE services, today and three years from now? (Fully outsourced being ‘5’ and
fully in-house being ‘1’)
Note: The mean score is calculated as the sum of the multiplication of each score with their respective number of respondents, divided by the total
sum of respondents.

21. 21
… cross-functional
collaborating is presenting
CRE an opportunity to uplift
its relevance and recognition

22. 22
Current level of collaboration between CRE and other support functions
Question: Today, how would you describe the collaboration of CRE with the following business functions?—Today and in three years’
time
Collaboration between CRE and business support functions
is already occurring with significant and surprising intensity

23. Japan Corporate Real Estate Index 2013

24. 24
In many aspects of CRE, sizeable variance exists between
Japan and the rest of the World
Where Japan lies, in relative to global peers