LABOR TRENDS OVERVIEW

OCTOBER 27, 2016

Rob Marsh, Executive Vice PresidentCBRE Labor Analytics

CBRE LOCATION INCENTIVES 2

THE CHANGING LANDSCAPE WAR FOR TALENT

SOLVING FOR THE INTERSECTION LABOR & LOCATION

BUSINESS DEMAND FOR TECHHOW DOES MIAMI STACK UP

THE CHANGING LANDSCAPE WAR FOR TALENT

Professional Services

Research & Development

Information Technology

Finance & Accounting

Back-Office Processing

Call Center

LAB

OR

VA

LUE

CH

AIN

STRATEGICMARKETS

TIER 2/3 MKTS

WORKPLACE

OFFSHORE/OUTSOURCE

NEAR SHORE

1990’s TODAY

EVOLUTION OF CORPORATE LOCATION STRATEGY

BUSINESS WANTS TO FIND OPPORTUNITIES AT THE INTERSECTION OF HUMAN CAPITAL & REAL ESTATE.

OCCUPIERS ARE MAKING PEOPLE-CENTRIC DECISIONS WHEN SELECTING MARKETS

50%TALENT

AVAILABILITY

40%ACCESS TO NEW

MARKETS AND CUSTOMERS

36%QUALITY OF LOCATION INFRASTRUCTURE AND

AMENITIES

31%REAL ESTATE

COSTS

57%S E E E M P L O Y E E A T T R A C T I O N

A N D R E T E N T I O N D R I V I N G W O R K P L A C E S T R A T E G Y

50%E X E C U T I V E S C H O O S E

M A R K E T S B A S E D O N T A L E N T R E Q U I R E M E N T S

44%S E E S K I L L E D L A B O R

S H O R T A G E S A S A P R I M A R Y C H A L L E N G E F A C I N G T H E I R

O R G A N I Z A T I O N

TALENT DETERMINES THE MARKET COST PINPOINTS THE LOCATION

SKILL SET

Education levelsRecruit & Retain

OP

ER

ATIO

N

SIZ

E

EX

PE

RIE

NC

ELicensing

Cost of living

INC

EN

TIV

ES

Market SizeRegion Preference

STA

TES

Tim

e zo

nes

Wage rates

Saturation levels

CompetitionFuture Risk

Indu

stry

Clu

ster

s CRITICALFACTORSSTARTING WAGE

SCA

LAB

ILIT

Y

WO

RK

ETH

ICP

arki

ng R

atio

SEATTLE

BAY AREA

LOS ANGELES

CHICAGO

DALLAS

HOUSTON

BOSTON

NEW YORKPHILADELPHIA

WASHINGTON DC

ESTABLISHED

URBAN B-LIST

PHOENIX

SALT LAKE CITYDENVER

SAN ANTONIOAUSTIN

NASHVILLE

ATLANTACHARLOTTE

RALEIGH

ORLANDOTAMPA

NEXT PHASE

PORTLAND

BOISEBOZEMAN

PROVOLAS VEGAS

ALBUQUERQUE

OMAHADES MOINES

OKLAHOMA CITY

KANSAS CITY

NEW ORLEANSTALLAHASSEE

HUNTSVILLE

ASHVILLE

ROCHESTER

COLUMBUS

DETROITPITTSBURGH

MIAMI

WHERE ARE THE CENTERS OF LABOR?

SOLVING FOR THE INTERSECTIONOF LABOR & LOCATION

PAYROLL

$1.00 / HR $16.64 / SF

TAP INTO

SPECIALIZEDSKILLS

REDUCEOPERATING

COSTS

72%

15%

8% 5%

REALESTATE

TELECOMTAXES

WHY LEAD WITH LABOR?

ACHIEVE

“EMPLOYER OF CHOICE”

STATUS

NEWLOCATIONS

EXISTINGLOCATIONS

PORTFOLIOSTRATEGY

WHERE CAN I CREATE A NEW HUB?

IF I STARTED WITH A BLANK PAGE, WHERE SHOULD I BE?

HOW LARGE CAN I GROW?

HOW DO I POSITION MYSELF AS A PREFERRED EMPLOYER?

WHERE IS THE UNDERLYING TALENT IN THE WORKFORCE?

WHO AND WHERE IS MY COMPETITION?

HOW DO THESE NEWLY ACQUIRED SITES FIT INTO MY PORTFOLIO?

HOW CAN I DEVELOP A STRATEGIC ROADMAP FOR MY EXISTING LOCATIONS OR FUTURE DECISIONS?

SIMPLE CONCEPT: COMPLEX SOLUTION PATH…

• WORKFORCE IS TIGHTENING• SPECIALIZED TALENT IS IN HIGH DEMAND• WAGES & COMPETITION ARE INCREASING

WHAT DOESTHIS MEANFOR YOU?

START BY LOOKING AT THE TRENDS

REMEMBER IT’S NOT JUST ABOUT WAGE…

BUSINESS DEMAND FOR TECHHOW DOES MIAMI STACK UP

PREPARED FOR CLIENT© 2016 CBRE | CONFIDENTIAL & PROPRIETARY 16

PREPARED FOR CLIENT© 2016 CBRE | CONFIDENTIAL & PROPRIETARY 17

REPRESENTATIVE JOB ANNOUNCEMENTSMIAMI ACTIVITY

PREPARED FOR CLIENT© 2016 CBRE | CONFIDENTIAL & PROPRIETARY 18

0

50,000

100,000

150,000

200,000

250,000

300,000

LOCATION ANALYSISTOTAL TECHNOLOGY EMPLOYMENT

Unusual SuspectsStrong Growth MarketsEstablished Hubs

PREPARED FOR CLIENT© 2016 CBRE | CONFIDENTIAL & PROPRIETARY 19

2.1%

18.6%

-11.3%

5.7%

19.1%

10.0%

14.0%

-11.0%

21.2%

-7.3%-4.5%

0.8%

27.0%

19.3%

11.5%

18.5%

24.2%

19.8%

11.4%

LOCATION ANALYSISTECH DENSITY – 5 YEAR CHANGE (2011 – 2015)

Unusual SuspectsStrong Growth MarketsEstablished Hubs

PREPARED FOR CLIENT© 2016 CBRE | CONFIDENTIAL & PROPRIETARY 20

0%

2%

4%

6%

8%

10%

12%

14%

LOCATION ANALYSISTECH DENSITY (% Of labor force employed in tech jobs)

Unusual SuspectsStrong Growth MarketsExisting Client Hubs

PREPARED FOR CLIENT© 2016 CBRE | CONFIDENTIAL & PROPRIETARY 21

$60,000$65,000$70,000$75,000$80,000$85,000$90,000$95,000

$100,000$105,000$110,000

LOCATION ANALYSISMEDIAN SALARY FOR TECHNOLOGY PROFESSIONALS

Unusual SuspectsStrong Growth MarketsEstablished Hubs

2.5%

-2.6%

0.6%

-1.2%

-3.9%

6.1%

-5.4%

-3.7%-0.7%

5.5%

-2.6%

5.3%

-4.3%

4.1%

-5.3%

5.7%

-4.0%

6.6%

2.2%

LOCATION ANALYSIS% EARLY CAREER – 5 YEAR CHANGE (2011 – 2015)

Unusual SuspectsStrong Growth MarketsEstablished Hubs

THANK YOU