30 March 2016 | Herpreet Kaur Grewal
The number of companies outsourcing their real estate and facilities management requirements is increasing across EMEA, according to data from global real estate adviser CBRE.
CBRE's EMEA Global Workplace Solutions (GWS) business received a record number of requests for information (RFI) or requests for proposals (RFP) from corporations and other organisations in the region wishing to outsource all, or part, of their real estate activities in 2015.
This marks a 190 per cent increase over 2012 activity.
CBRE's analysis shows that the industrial sector was the most active in the EMEA real estate outsourcing arena, accounting for 23 per cent of RFIs and RFPs received in 2015.
(story continues below graphic)
The increase in industrial sector outsourcing was mostly due to:
- The growing need for efficiencies and fears about slower growth in the manufacturing sector;
- Single sites or smaller sites which, historically, are less conducive to outsourcing now adopting this practice; and
- Specialist asset types require specialist advice so the sector, traditionally, has been more inclined to review portfolios 'in-house'. Again, this practice is changing as third-party service providers gain increasing technical expertise, said CBRE.
Strong demand for outsourcing services was also recorded in the technology sector, which accounted for 14 per cent of activity. Financial services and healthcare each represented an additional 10 per cent.
CBRE's data also shows the most popular real estate function to outsource is facilities management - 64 per cent of its global outsourcing briefs included this service.
The growth trend for outsourcing is also reflected in CBRE's recently launched European Occupier Survey, which spanned 120 world-renowned organisations.
Fifty-four per cent of respondents noted that they had outsourced some or part of their property requirements through a specialist property advisory company.
This figure marks an uplift from 30 per cent the year before and shows that more corporates are calling on specialist property advisers for outsourcing advice.