Thanks to advanced technology, cultural shifts, and corporate downsizing, more companies are seeking new workplace solutions—and turning to experienced Project Managers to help them. Many tenants are demanding creative space alternatives that cut costs, improve productivity, and increase morale.

Companies are planning today for the workplace of the future. Whether they are renovating existing space or relocating, they are considering strategies to optimize their space.

Let’s take a closer look at the forces behind workplace optimization:

Economy. Slow job growth continues to stall the recovery, and downsizing has led to reduced footprints.

Technology. Technological advancements allow employees to work virtually, anywhere, at any time. Today, as bandwidth on wireless devices increases, employees typically have at their fingertips all the information they need.

Culture. Many organizations have four generations on the same payroll: Traditionalists, Boomers, Generation X, and Millennials. The challenge is to address the different styles and find common denominators.

Tied to these forces, many companies have implemented new space strategies with common characteristics:

Smaller workstations. While the overall footprint per employee is compressing, so is the size of workstations.

The new cube. The traditional workstation or cubicle, with walls on all sides to provide standing privacy,

is evolving as walls are coming down and giving way to space that supports team collaboration and interaction.

Sound-masking. Because walls do not guarantee privacy, sophisticated sound-masking systems are replacing walls or workstation panels as the primary privacy screen.

Reconfiguration. To fill empty seats, many companies are consolidating and “restacking” staff in many locations.

Virtual offices. Thanks to broadband wireless for laptops, smart phones, iPads, and virtual webinar meetings, today’s “office” may be a den, coffee shop, cafeteria, train, or hotel.

Hotelling. The idea of one person per workstation is yielding to shared space. With hotelling, employees typically use a central reservation system to plan their schedules to best utilize time.

Open spaces, common areas. Tenants are revitalizing worksites through spaces that support formal and informal communication and interaction. Build-outs promote comfortable, collaborative work areas and open environments.

To get started, companies should determine their true vacancy and, consequently, the true cost of occupancy. They should then review staffing scenarios involving in-house versus outsourced responsibilities. An advantage of using outside, objective consultants is that it is easier to arrive at consensus.

For related information, see page three.

ConneCTion

Alternative Workplace StrategiesHelp Companies optimize office Space

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insites innovations at WorkThe new Year brings news of increased velocity in some markets, but the real estate recovery generally remains sluggish. in what is still predominantly a tenant’s market, companies have opportunities not only to use their leverage to negotiate great deals but also to find innovative and economical workplace solutions.

The theme of this edition of Connection is workplace strategies that optimize office space, with an overview of this topic on the front page, followed by related page-three focuses in TenantTips, Strategies that Save, and ClientCorner (which spotlights our work for Skype).

on page two, we present a 2011 forecast in MarketTrends, and GoingGreen addresses sustainability (another important advisory service) and corporate responsibility.

Despite the industry slowdown, 2010 was a record-breaking year for CresaPartners, and we owe much of our success to our integrated services approach in which our advisor-brokers work closely with our project managers, strategic planners, and other professionals to give our clients every advantage.

Whatever happens with the recovery, we encourage tenants to look at their long-term plans and align their real estate with their business goals. it’s always wise to conduct due diligence, and we invite you to learn more about Project Management and other timely issues by checking out our blog posts and articles at www.cresapartners.com.

Wishing you a successful 2011,

Bill Goade Chief executive officer CresaPartners LLC

2011 Market Forecast: A Mix of optimism, Pessimism, and Realism

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The Miller Richmond Company, a well-respected, Atlanta-based, 26-year-old corporate real estate advisory firm specializing in tenant representation, has joined forces with CresaPartners in Atlanta.

Four top-producing advisors from Cushman & Wakefield have joined the team at CresaPartners in Miami.

Follow CresaPartners news and commentary through our blog and social media:

www.cresapartners.com

www.cresapartners.com/blog/

www.twitter.com/cresapartners/

www.facebook.com/pages/ Boston-MA/CresaPartners/174940031976?v=info

it started as another environmental trend. it took off as a way to create a healthier planet and healthier worksites. it then became recognized as a means to sharpen your competitive edge. Today, Sustainability has transcended the status of something that companies need to react to: Virtually all industries are looking for ways to be proactive in their sustainable practices…because it is expected and because it continues to make good business sense on many levels.

Studies show that customers prefer to do business with companies that are good corporate citizens. in this light, if you can demonstrate your commitment to the green movement, you can increase your chances of opening doors with clients and prospects.

Becoming more sustainable helps you and customers in many ways:

Recruitment and retention. More and more, employees are looking for progressive work environments, and that includes worksites that are sustainable.

Branding. Sustainability is often tied to sales and marketing efforts, and it definitely affects overall branding. This may involve printing, packaging, recycling, and the purchase of green products.

Sustainability is something all businesses have in common, and it provides a great platform for sharing best practices and forming bonds.

There are many way to embrace Sustainability. A real estate service advisor can review options and show you how to go green at little cost.

Visit www.cresapartners.com/blog/category/sustainability/.

Sustainability: Corporate Responsibility and opportunity

GoinGGreen

is the market really changing, or are we in for more of the same in 2011? is the glass half-full or half-empty?

Half-Full According to research analysts Reis inc. and other industry sources, the final weeks of Q4 showed fresh signs of life in the office market. For example:

The 10-year Treasury rate, a critical benchmark for commercial real estate lending, climbed to 3.5% in December 2010 from the 16-month low of 2.4% in october.

The amount of occupied office space increased slightly for the first time in nearly three years.

Average office rents also rose slightly—their first uptick since Q2 2008.

investment activity rallied this year, recording $168 billion in sales, up 60% from 2009.

Half-Empty While there are positive signs, we still have a long climb back:

Job growth continues to be modest with the national unemployment rate now at 9.4%.

The national vacancy rate of 17.6% is unchanged since Q3 2010, the high point since 1993.

Average rents are still well below highs in 2008 by 20% to 40%, depending on the market.

With the exception of select markets, demand is still down in most of the country.

Market reports depend on where you are located and where you occupy space in a specific building. For instance, the vacancy rate in Palo Alto is just 5.6% while it’s about 25% in nearby San Jose. And in high-rises in many downtown areas, view space is at a premium while vacancies remain high in the lower floors.

it appears that we’ve hit the bottom and are approaching some form of market stabilization, but conditions are expected to be flat for some time.

ultimately, realism trumps optimism and pessimism, and the bottom line is that we won’t enjoy a full real estate recovery until jobs reach their pre-recession level, which most economists predict will be in 2013.

See www.cresapartners.com/tenantsguide.asp.

understandably, CFos say “show me the savings” when it comes to new office initiatives. But tied to the hard cost savings associated with Project Management, it is important to consider related benefits that also contribute to a healthier bottom-line.

Reconfigure your space. Through revised space layouts, you can bring employees closer together and avoid the feeling of being disconnected.

Create collaborative work areas. By creating more open environments with soft seating and views of the entire area, you can promote greater knowledge sharing and enjoy a more enjoyable place in which to work.

Go green. Studies show that sustainable practices lead to healthier worksites and happier employees. Going green is also a way to improve morale and increase your competitive edge without necessarily adding expenses.

ultimately, the workplace can be viewed as a communication tool. enhancing the workplace through creative strategies will hone that tool and result in further benefits, including staff recruitment and retention along with better social networking.

For additional Project Management tips, visit www.cresapartners.com/blog/category/project-management/.

The Added Benefits ofProject Management

TenAnTtips

in one of last year’s most noteworthy Project Management assignments in the Bay Area, CresaPartners represented Skype, the premiere software company that enables the world’s conversations via internet voice, video, iM, and file sharing.

originally located in a house on eBay’s San Jose campus, with another site in Brisbane, CA, Skype decided to consolidate operations and relocate its domestic headquarters and R&D center to a much larger and more accessible location—a 90k SF office/R&D building in the Stanford Research Park in Palo Alto.

The overall challenge to CresaPartners was to manage the design, construction, and furniture selection process that would deliver space that was a contrast between the old shell and the new improvements that supported concentration, collaboration, and contemplative activities.

Led by our Silicon Valley Project Management team of Robin Weckesser and Tina Moore, we went to work on May 6, 2010 and quickly finalized the design, gained approvals for a collaborative work environment, hired a General Contractor, and started the vendor selection process. The scope of our services included budget and schedule development, design management, construction management, project team management, furniture vendor management, building activation, and build-out.

CLienTCorner

While budgetary constraint still rules in these uncertain economic times, it’s challenging for companies to economize and innovate at the same time. But, with efficient Project Management, it can and does happen.

Consider the ever-shrinking workstation. Cubicles that have traditionally been 8' x 8' are now often 6' x 8', yet they are designed to be more efficient and encourage interaction. They are also relatively inexpensive to install, since the price of furniture has come down.

Consider the headcount. The old model of 300 SF per person is now generally 240 SF per person or less. Further, office utility increasingly is being measured in terms of ratios of desks per full-time employee (FTe) rather than SF per FTe. The net effect of this kind of space reduction typically translates into substantial savings, usually at least 20%.

Bottom-line savings are the number-one reason why companies are implementing new workplace solutions. For those companies that might question an initial investment in alternative workplace strategies, it’s hard to argue with increased productivity and faster time to market for products.

STRATeGieS THATsave

For more information, visit www.cresapartners.com.

Smaller Spaces, Greater Savings

Skype: Cool Space for a Hot Company

The result was several types of work settings— including open office space, casual meeting areas, acoustically treated conference rooms and private phone booths—designed to facilitate collaboration while enhancing productivity.

The move-in date was December, 13th. The client and user reviews have been very positive.

in short, we were thrilled that we realized Skype’s vision for a cool and collaborative environment.

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THe TenAnT’SBill of riGhtsCresaPartners is guided by the industry’s only Tenant’s Bill of Rights—a clear

expression of what you can and should demand of your real estate advisor.

Integrity You have the right to an advisor who does the right thing—always.

Objectivity You have the right to an advisor who represents your interests only and will provide objectivity and full disclosure in partnership with you alone.

Experience You have the right to an advisor with the experience, knowledge, and team to deliver value and savings through a broad range of integrated services.

accountability You have the right to an advisor who is accountable for producing results and providing you with timely communication and “real-time” access to data.

leverage You have the right to an advisor who can put the power back in your hands by leveraging experience and market knowledge to your advantage.

Creativity You have the right to expect creative solutions from an advisor who understands your business and how it relates to your real estate needs.

Strategy You have the right to a consultative approach that blends strategic thinking with tactical execution to deliver long-term benefits.

Courage You have the right to an advisor with the courage and conviction to ask the tough questions, challenge the answers, and make solid recommendations.

Collaboration You have the right to an advisor who is truly collaborative...with you, with the team, and with the industry.

Satisfaction You have the right to an enjoyable experience, satisfied with both the results and the relationship with your advisor.

CresaPartners | Corporate Real estate Service Advisors MoRe THAn 125 oFFiCeS WoRLDWiDe | MoRe THAn 50 noRTH AMeRiCAn oFFiCeS | www.cresapartners.com