newsC O R E N E T G L O B A L

T A B L E O F C O N T E N T SA P U B L I C A T I O N O F C O R E N E T G L O B A L C O R P O R A T E R E A L E S T A T E N E T W O R K • F e b r u a r y 2 0 0 4

JAPAN CHAPTER CELEBRATES10TH ANNIVERSARY

• Focus IsOn The Future

INSIDE:

story inside continued on page 11

In marking 10 continuous years of operation this January, the JapanChapter of CoreNet Global is among the early influencing factors of theinternational organization, serving as one of several key entry points intothe Asia-Pacific region at a time when the European region was also coalescing.

Optimize Your GlobalPortfolioYour peers in corporate real estate– many of the industry’s leadingpractitioners and most experiencedexecutives from around theworld – will gather in Mumbai,India, for the CoreNet GlobalIndia Summit. To register for theMarch 22 – 24 event, please visitwww.corenetglobal.org.

continued on back cover

CORPORATE REALESTATE2010 ENABLING WORK INA NETWORKED WORLD

THE FUTURE OF CORPORATE REAL ESTATE. WHERE IT’S GOING, WHAT’S DRIVING IT – AND HOW YOU GET THERE.

Early Bird Registration Extended To March 15th – Save $150! www.corenetglobal.org

See inside for more event information

Former U.S. PresidentBill Clinton to addressMay 17th OpeningGeneral Session;Author Gary Hamel on"Lead the BusinessRevolution" andConsultant LarryDownes, on "HarnessIT’s Disruptive Power"

CORENET GLOBAL

TARGETS TRAILBLAZERINITIATIVE TO PROMOTE

MEMBERS

CoreNet Global has taken actionon a recruitment initiative aimedat increasing membership to a 1:1ratio of end user members to serviceprovider and economic developers.

The CoreNet Global Trailblazercampaign is off to a strong start,thanks to the early commitment ofa growing number of Chaptersand members like you.

Being a Trailblazer means thatyou’re playing a leadership rolein helping forge the future devel-opment of CoreNet Global and thecorporate real estate profession.

At the Chicago Summit, CoreNet Global releases itsfindings from one of corporate real estate’s biggestvisionary efforts ever – a study of long-term industrytrends and a forecast of the role and function of corporate real estate in 2010.

more on page 2

more on page 9

Bill Clinton Gary Hamel Larry Downes

‘Japanese companies have an importantrole in a truly global network’‘Japanese companies have an importantrole in a truly global network’

story onpage 8

2 CoreNet Global ChicagoSummit

2 CoreNet Global BudapestSummit

3 Japan Chapter Celebrates

4 Community ReinvestmentChallenge ChapterInvolvement

5 Chapter News – S. California

6 EDP Long-distance Learning

6 Hong Kong Chapter Hosts MCR

7 Executive Development Program

8 Corporate Real Estate 2010

9 Utility Funded Grants

9 Trailblazer Initiative

10 When is a square foot – OSCRE

10 Global Innovator’s Award

11 Member Profile – Ashok Kumar

12 Budapest Selected for Summit

12 Project Atlanta Contributors

12 Ron Adam and EuropeanCorporate Real Estate

13 Member Viewpoint –Sarbanes-Oxley

14 Members On The Move 14 Wheelin’ and Dealin’15 Member Profile – Larry Servin16 CoreNet Global India Summit

CoreNet Global has selected thecity of Budapest, Hungary to hostthe CoreNet Global Europe Summitfrom 19 – 21 September 2004.

The September 2004 event inBudapest is expected to attractmore than 350 industry profession-als from Europe, as well as NorthAmerica, Asia and Australia. CBRichard Ellis will serve as the title

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 42

CORPORATE REAL ESTATE 2010...continued from page 1

CORPORATE REAL ESTATE 2010ENABLING WORK IN A NETWORKED WORLD

The CoreNetGlobal ChicagoSummit, whereit truly is allabout YOU!

Jump-startyour careergoals with a recommit-ment to furthering youreducation.Take inventoryof your professionaldevelopmentneeds. Thentap into ourexpertresources.Build a

personalized curriculum. Networkwith peers and business contacts.From practical hand-on techniquesto business skills for life, learn howto do what you do better.

Whether you’re an industry newcomer, a seasoned veteran or somewhere in between, this educational conference will helpyou enhance your strategic valueand empower you for long-term success. Let the CoreNet GlobalSummit be the catalyst for makingyour professional developmentgoals a reality.

Your EducationThe Chicago Global Summit willbroaden your business skills byoffering programs built to addresswhat you learn and how you want to learn it:■ Design the curriculum that best

suits YOU based on your level ofexperience by choosing sessionsgeared toward, and taught byCorporate Real Estate professionals.

■ Take control of your learning byattending the type of sessionsyou prefer inspiring keynotes,workshops and roundtables.

■ Enhance your knowledge bychoosing from more than 40 different learning sessions

Your KnowledgeAt the Global Summit, CoreNetGlobal aims to deliver comprehen-sive and balanced professionaldevelopment for both corporateend-user planners service providerparticipants. A specially built curriculum offers even more toenhance your career and personalgoals through:■ Keynote addresses featuring

world renowned presenters■ 90-minute concurrent sessions

led by real estate businessexperts.

■ More hands-on roundtable discussions and industry specific topics than ever previously offered.

Your BusinessCoreNet Global’s 2004 GlobalSummit offers a uniquely intimateenvironment for qualified buyers andindustry suppliers to interact andnetwork throughout the conferenceand during the Education Program.Establish new business relationshipshere because doing business withCoreNet Global can really pay off.Consider:■ CoreNet Global’s members

generate real impact! Our 7,500members are based in 25 countriesand manage more than $1.2 trillion in real estate and workplace assets

■ Most of the Fortune 100 companiesare represented among CoreNet

■ The CoreNet Global GlobalSummit is the only industry association event dedicated to meeting the business and educational needs of theCorporate Real Estate professionalincluding end users, serviceproviders and economic developers

THE FUTURE OF CORPORATE REAL ESTATE. WHERE IT’S GOING, WHAT’S DRIVING IT – AND HOW YOU GET THERE.

Register by March 15 and Save $150!

www.corenetglobal.org

SUMMIT SESSIONS AND HIGHLIGHTS: • Former U.S. President Bill Clinton will speak on the global

economy. Business strategist Gary Hamel will set the big-picture view for the future of corporate real estate. ITexpert Larry Downes will focus on real estate and the CIO.

• New educational sessions on government real estatefor Federal property and workplace managers, and therole of the CFO in developing real estate strategy andthe interdependence of a networked workplace withformer Bristol Myers Squibb CFO Dennis Raney.

• Register now for EDP (Executive Development Program)PreSummit seminars – your source for solutions-oriented knowledge. Learn how you’ll play a leadershiprole in the new world of corporate real estate.

• Take part in the introduction of Project Green, a programthat focuses on sustainable development — part of theCoreNet Global Expo, which runs concurrently with the Summit.

The future of corporate real estate. How you get there.

Register now for a don’t-miss line-up of programs,speakers and information designed especially to

address the audiences and issues most relevant to the corporate real estate world.

more on page 3

The 2004 CoreNet GlobalEuropean Summit will be held 19 – 21 September inBudapest, Hungary. Thislocation – in the center of the New Europe – enablesCoreNet Global members and Summit delegates toexperience first-hand theenergy and unique businessadvantages available inCentral and Eastern Europe.Budapest is a nucleus ofactivity – new investment,restoration, commerce, intellectual debate and culture. The city’s setting on the Danube River provides a vibrant backdropfor an exhilarating Summit.

Our conference theme –Enabling Work in anExpanded Europe – investi-gates topics that range fromthe changing nature of workitself to new, emerging strategies for sustainable redevelopment of properties.Exploring these topics in the context of the dynamic business environment ofCentral and Eastern Europeenhances our discussions of the emerging businessopportunities in the networked world.

March 11 is the deadine torespond to the Call for Casesif you are interested in submitting a presentation proposal.

Call for Cases information can be viewed atwww.corenetglobal.org under the Budapest GlobalSummmit link.

CORENET GLOBALIN BUDAPEST

Industry’s Coming of Age in AsiaParallels CoreNet Global’s Evolution

Looking back over the formativeyears that shaped CoreNet Global’sworldwide network of 7,500 membersin 25 countries, the establishment ofinternational chapters in major citiesaround the world helped define theslow but steady evolution of the corporate real estate profession’sglobal base. In marking 10 continuousyears of operation this January, theJapan Chapter of CoreNet Global isamong the early influencing factorsof the international organization,serving as one of several key entrypoints into the Asia-Pacific region at a time when the European regionwas also coalescing.

Like any of the more than 50 majorlocal markets where members arebased, the Japan Chapter’s develop-ment largely in Tokyo is a reflectionof constantly changing economicconditions and business practices.Yet, even with the rigorous economicchallenges Japan has faced globallyand at home almost on a continuousbasis since the late 1980’s, CoreNetGlobal remains strongly rooted there.

Its original handful of members totalsmore than 65 today and counts leadingJapanese companies such asFujitsu Ltd., Takenaka Corp., KajimaCorporation, and Mitsubishi amongthem. And companies like IBM Japan,Ikoma/CB Richard Ellis, FederalExpress and Nihon Sun Microsystemsadd balance to the group’s impressivenational and multinational roster.

Co-Founders Remain LeadersThe first meeting of the Japan Chapterwas held January 20, 1994, underthe aegis of IDRC, which integratedwith NACORE International in 2002 toform CoreNet Global. The founders,Mototsugu (Moto) Nakatsu and Pak K. Kwan, are still leading theorganization today.

"Moto is the driving force behind theJapan Chapter," says Chapter ChairmanKwan who is RepresentativeDirector of Prudential Real EstateManagement Company, a PrudentialFinancial company.

Japan chapter. I hope this is true,because the Japanese companieshave an important role in a trulyglobal CRE network and association."

Today, other forms of change areredefining the membership experiencein Japan, just as the country’s corporate demographics are shifting.A prime example is that more womenare involved in the facility and corporate real estate profession in Japan. A recent meeting of theCoreNet Global Japan Chapterincluded 20 women from a localwomen’s facility management group.

Aspiring to Strategic ValueFor many of the members in Japan,the decade-long odyssey to CoreNetGlobal reflects their aspirations tomake themselves and real estate a strategic asset. "We elevated

facilities manage-ment to the nextlevel and turnedcorporate realestate into a moreserious subject,"explains Kwan,adding that the

profession has come a long way in Japan, where previously corporate real estate facilities management primarily provided general support services and back-office functions.

"The industry’s coming of age parallelsthe evolution of the association,"says Kwan. "CoreNet Global hasexpanded corporate real estate toshow how we make a difference in acompany’s bottom line and earnings.Our role has become an integral partof operation," Kwan concludes.

"When the chapter was founded,Japan was in the middle of an economic bubble and now the economy has changed significantly,"says Nakatsu, President of NakatsuCRE/FM Consulting Inc. in Tokyo.

When recession hit the nation, companies began to outsourcemore functions and became morelocalized. As part of this change,now all members are Japanese-speaking. Still today, members thereare re-evaluating their practice ofdecentralization.

One reflection of the ongoing changeof view in Japan was Dr. PrenticeKnight’s visit to the Chapter in 2003.Knight, who serves as Vice Presidentof Discovery for CoreNet GlobalLearning, examined Japan’s corporate landscape with chaptermembers.

The special Discovery Forum - heldin Tokyo last April - found that whilemany Japanese companies tend toview corporate real estate as adecentralized function, more ofthem are interested in the globally-or regionally-centralized operatingmodels that serve as the currentpredominant industry standard.

Real Growth Potential"I found the meetings in Japan very stimulating, and the Japanesehospitality was wonderful," said Dr. Knight. "Japanese companieshave historically taken very decentralized approaches to corporate real estate management.Based on the questions and commentsI received, there seems to be growinginterest among Japanese multina-tionals in developing more centralizedand strategic approaches to globalmanagement of corporate real estate(CRE). Given this interest, I believethere is real growth potential for our

JAPAN CHAPTER CELEBRATES10TH ANNIVERSARY

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 4 3

Your ValueHere’s whyyou will getyour money’sworth!

■ A dynamicOpeningGeneralSession

CORENET GLOBALCHICAGO SUMMITcontinued from page 2

JAPAN CHAPTER CELEBRATES 10TH ANNIVERSARY

CoreNet Global has expandedcorporate real estate to showhow we make a difference in a company’s bottom line and earnings.

■ Two additional powerfulkeynote addresses

■ More than 40 top-notch learningsessions including 14 programson Corporate Real Estate 2010

■ Two days of powerful interactiveworkshops

■ Interaction with knowledgeexperts from all facets of theindustry

■ Continental breakfast networkingopportunities on Monday andTuesday

■ Access to the Expo Showcasefeaturing more than 250exhibitors

■ Opening Night Networking Gala■ Outstanding Hospitality Events■ Comprehensive attendee list

for all registrants■ Conference Connections, your

CoreNet Global Daily newspaperwith door-drop deliveries toattendees staying at the official conference hotel(s)

■ Comprehensive on-site conference guide, includingsession descriptions, CoreNetGlobal resources and aCorporate Real Estate 2010overview.

■ Comprehensive BusinessTechnology Center featuringWi-Fi Internet connectivity

Your TakeawaysWhat’s in it for you and your organization? The real value is inthe takeaways:■ Key tools for you to use right

away to enhance your careerand organization

■ Key business skills and industry insight

■ New contacts and superiornetworking opportunities

■ Expanded business networkingrelationships

■ Furthering your knowledge, soyou can do what you do better!

Japan Chapter Co-founders MotoNakatsu (right) and Pak K. Kwan

Giving back –returning some-thing to the com-munities wherewe live, conductbusiness andhold Chaptermeetings orGlobal Summits –is becoming animportant part ofyour CoreNet

Global membership experience.

The original idea of investing in ourlocal communities started with theEast Lake area of Atlanta, whichsparked the formation of theCoreNet Global CRC. According toScott Smith (Nortel Networks) of theAtlanta Chapter, the group identifiedan opportunity, which was theessence of what the CRC is allabout. "Neighbors in Need" is a program in the East Lake Communitywhere the vision of Atlanta developerTom Cousins transformed an areaonce called "Little Vietnam" for itsdrugs and violence into a thrivingmixed-income and mixed-use com-munity. It was Cousins’ presentationabout the East Lake Community atan IDRC World Congress in NewYork City in 2000 that inspired theformation of the CRC.

In 2002, the Board of Directorsunanimously endorsed the commu-nity reinvestment concept as anintegral part of the CoreNet Globalprogram of work. That decisionpaved the way for the formation ofthe CoreNet Global CommunityReinvestment Challenge, or CRC.

A core team of member volunteerswas formed to serve as coordinatorsand organizers for all local Chapters.Juan Cano with Nortel Networksand co-chair Scott Foster with BoozAllen Hamilton led this team. Undertheir leadership, CRC calls on us toutilize our collective talents andresources to enrich people’s livesand improve communities worldwidethrough both volunteer involvementand financial contributions. CoreNetGlobal Chapters recognize that

in Canada, the construction of 14homes in nine days.

In addition, the 10-acre EastlakeCommunity Park now has a masterplan for continuous improvementand through the ongoing support ofthe Atlanta Chapter will become asafe place for children and familiesto enjoy once again.

Including the events in Toronto andAtlanta, through October 15, 2003,thanks to the caring and generosityof members and volunteers, CoreNetGlobal reinvested 2,200 man-hoursand $147,000 to help with a varietyof charitable projects at the locallevel. These are extraordinary numbers for an initiative that is less than 3 years in the making.

community need is ongoing. Evenwhen Summits are not in progress,work continues at the Chapter levels.Thanks to strong Chapter leaderswho are constantly promoting CRCinitiatives and gathering supportamong their members and in theircities all year long, our communitieswill benefit for years to come.

This first CRC project was initiatedto coincide with the Toronto GlobalSummit in the spring of 2003. Theproject was a success in spite ofthe Global Summit cancellation theredue to the SARS virus. According toToronto Chapter Vice Chair VanessaPerdue (Canadian Imperial Bank ofCommerce), the Chapter teamed upwith Habitat for Humanity to tacklethe largest project ever by the Habitat

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 44

LET’S BUILD TOGETHER

CORENET GLOBAL’S COMMUNITYREINVESTMENT CHALLENGE: CHAPTERINVOLVEMENT TAKES ROOT IN 2003

Our Mission:To invest a portion of our members’cumulative talents, resources and actions in CommunityReinvestment initiatives.

In partnership with its networkof local Chapters, CoreNetGlobal will be a catalyst forenabling significant contributionsto improving local communitiesworldwide.

CoreNet Global’sCommunityReinvestmentChallenge Team:Juan Cano, Nortel Networks Sharon Barrett, Liberty Greenfield Scott Foster, Booz Allen Hamilton Mike Greidanus, BLJCElaine Groves, CoreNet Global Sandy Lynch,

PageSoutherland Page Gary Miciunas, HOK Advance

Strategies Scott Smith, Nortel Networks Greg Smook, Capital One Bob Shipman, Hanscomb

Faithful & Gould

Because of CoreNet Global member and chapter generosity shownthroughout North America, and with the support of the CRC Global CoreTeam under the leadership of Mike Greidanus with BLJC, we were ableto make a dream come true for Cheryl and Emma Santiago in Toronto.Pictured: Vanessa Perdue, Vice-chair (left) and the Santiagos. More than40 CoreNet sponsored volunteers helped build the Santiago home, and inexcess of $43,000 was raised to pay for the construction costs.

Together with Atlanta Housing Authorityand East Lake Village, over 120 CoreNetGlobal volunteers contributed in excessof 800 hours during the Atlanta GlobalSummit cleaning up, painting, re-roofing,renovating and landscaping 8 Eastlakehomes for senior citizens and their families. As part of the effort, volunteersconverted the home of Cedrick Mills tobe wheelchair accessible. He was thevictim of a random drive-by shooting, andhis family could not bring him home fromthe hospital until CoreNet Global steppedinto to retrofit his home, according to localpress reports. Financial contributionsexceeded $48,000

To pledge or donateor to volunteer yourtime in Chicago,click http://chapters.corenetglobal.org/CRC/pages/pledges.jsp

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 4 5

C H A P T E R N E W S

SOUTHERN CALIFORNIA CHAPTERThe Real Estate Executive of theYear event has honored some of themost prominent individuals in RealEstate and in Real Estate Services in the Western United States. For the past eight years, the SouthernCalifornia Chapter of CoreNet hasacknowledged those individualswho have committed their time andeffort to the industry and to the community while serving as a leaderin the real estate profession. Held at the Century Plaza Hotel in CenturyCity, more than 500 Corporate RealEstate and industry leaders participateeach year. Each year a nominatingcommittee assembles a list of individuals who are nominated by the members.

The highlight of the evening is avideo presentation on the businessaccomplishments of the honorees.As you can imagine, the award ishighly sought after and serves as a prestigious honor on anyone'sresume.

This year, in addition to honoring areal estate executive and serviceprovider our chapter honored anagency of the federal government-the General Services Administration-for its incredible dedication to inno-vation. GSA Deputy AdministratorDavid Bibb graciously joined us fromWashington DC to accept this awardon the GSA's behalf. Foremost to thegoals of the Southern CaliforniaChapter of CoreNet Global is integrating and leveraging the expertise of the publicand private sectors relative to real estate portfolio management, strategy andbest practices.

The benefits of the event are dedicated to furtheringthe work and educationalprograms of CoreNetSouthern California. TheChapter has provided scholarships for members to attend the annual

summits, EDP (EducationalDevelopment Programs), host membership and networking eventsand develop course curriculum.

The Southern California Chapter ofCoreNet Global is proud to conferthe Executive of the Year honor onthose individuals who have supportedthe Chapter's efforts and excelled intheir career in real estate and mostimportantly, participated in improvingour community.

From left: Harry Topping,2003 Real Estate Executive ofthe Year Honoree; Alice Wilson,President, CoreNet GlobalSouthern California Chapter;Sanford Smith , 2002, RealEstate Executive of the YearHonoree

From left: David Bibb,Acting Deputy Director, GSA accepts the Award forInnovation on behalf of GSA;William Lawson, Senior V. P.,The Staubach Company

Outstanding Chapter ServiceAwards:From left: Michael Hobbs, VicePresident, Grubb & Ellis;Cheryl Yanez, Senior VicePresident, Chicago Title;Charmaine Alexander, VicePresident, Charles Dunn Co.

CoreNet Global Faculty Appreciation Award:From left: Steve Marcussen, ExecutiveManaging Director, Cushman & Wakefield;Stephen Barker ,President, Boeing RealtyCorporation; Todd Anderson, Director, Cushman& Wakefield; Alice Wilson, President, CoreNetGlobal Southern California Chapter

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 46

Video-enabled distance learningproducts allow you to view the bestof CoreNet Global Learning’s programsanytime, anywhere. Topics benefitcorporate end-users and serviceproviders alike. A great way to stayup-to-date with the latest programsfrom CoreNet Global Learning.

Three of the Top-rated Sessionsfrom the Atlanta Summit on CD-ROM!Positioning for Survival andCorporate Leadership in TheseTurbulent Times This session convenes leaders in the corporate real estate industry to discuss the issues and how to bringtogether the key building blocks forsurvival and corporate leadership inthe future.Moderator: Prentice Knight,

CoreNet GlobalLearning

Panelists: Mark Golan, CiscoSystems, Inc.; LarryEbert, Capital OneServices, Inc.; FrankRobinson, McKessonCorp.; Ed Noha, JonesLang LaSalle; GaryBeban, CB Richard

VIDEO-ENABLEDDISTANCE LEARNINGON CD-ROM

Ellis; Barney Upton,Cushman & Wakefield

Sarbanes-Oxley: (SOX 404)ComplianceUnderstand the impact of theSarbanes–Oxley Act for corporatereal estate professionals covering a range of corporate real estatebusiness activities.Moderator: Jeff Randolph, KPMGPanelists: Mark Rose, Jones

Lang LaSalle; Michael Testone, MGPEnvironmental Partners

Insights on the Real Estate MarketsThis session addresses the big picture for real estate while providinginsight on where the real estatemarkets are heading—addressing a number of change forces alreadyin place that will likely continue toimpact the real estate markets ingeneral.Moderator: Gary Beban,

CB Richard Ellis

Panelists: Ray Torto, WheatonTorto; Barney Upton,Cushman & Wakefield;Ed Noha, Jones LangLaSalle

New InteractivePlatform! Video-taped sessions ofspeakers and panelists runsimultaneously with easy-to-read slide presentations,allowing you to skip forwardand backward with a simpleclick of the mouse to any pointof the presentation you desire.Stopping and returning to theprogram is easy! Great forboth individual and grouplearning.

Introductory PricingThe following special is beingoffered as an introductoryprice for this pilot programfrom the Atlanta Summit. • Member CoreNet Global

US $50 each • Non-member

US $75 each To order, or for more informa-tion, contact 404-589-3222.

2004 Long BeachEDP RegionalSeminar ScheduleMarch 15-19, 2004

March 14 –17,2004

MCR Capstone:Leadership and Strategy:

Corporate Real EstateManagement in Today'sEconomy

March 15-17, 2004• MCR Elective: Advanced

Real Estate Negotiation• MCR Required: Aligning

Real Estate and Business Strategy

• MCR Required: Corporate Real Estate Finance

• TS Required: Strategy andPlanning

March 17-19, 2004 • MCR Elective: Advanced

Lease Analysis• MCR Elective: Partnering

with HR & IT • MCR Elective: Real Estate

Transactions' Impact onCorporate FinancialStatements

• SLCR Required: Leadershipand Strategic Planning

• TS Required: FinancialAnalysis of Leases andPurchases

How did youreconomic devel-opment organiza-tion provideleadership inyour communityin 2003? Whichaccomplishmentsand results setyour organiza-

tion apart last year? CoreNetGlobal and Corporate RealEstate Leader want to know!

The 2004 Call for Nominationswill be sent to CoreNet Global’seconomic development mem-bers via e-mail on Feb. 3, withnominations due March 15.Winners will be recognized onstage at the Chicago GlobalSummit in May, so be sure toenter the competition!

The Economic DevelopmentLeadership and AccomplishmentAward is sponsored by GlobalDirect Investment Solutions.For more information on theaward, please contact TimVenable at CoreNet GlobalLearning (phone 404-589-3221 andtvenable@corenetlearning.org).

Corporate Real EstateLeader’s 2004 EconomicDevelopment Leadershipand AccomplishmentAward

All in all an excellent response tothe launch of CoreNet Global’s flag-ship education program – Mastersof Corporate Real Estate (MCR) inHong Kong, October 2003.

The Hong Kong Chapter welcomedfaculty Michael Joroff, Director ofResearch, MIT who led the seminarfor the 2 day duration assisted byAndrew Hawkins, Director- CorporateServices, Cushman & WakefieldAsia. The seminar theme – AligningReal Estate and Business Strategyis one the three required seminarswithin the program and was deemedappropriate to kick off the series toAsia members patiently awaiting the opportunity to become MCR accredited. A full turnout with all 25 seminar spaces snapped up,

HONG KONG CHAPTER HOSTS FIRSTMCR PROGRAM IN ASIA

the seminar attracted 80% corporateend users and introduced four newmembers to a growing regionalmembership. With member repre-sentatives from Shell, JP Morgan,Citibank, Chevron Texaco, HongkongLand, Proctor & Gamble and Shanghaibased developer Shui On, to name afew, the two day seminar fosteredsome good debate and discussionamongst a diverse industry group.Case studies were given by WilliamTaam, Director – Asia, AIG GlobalReal Estate, Andrew Barker,Regional Director, Cushman &

Wakefield PREMAS and JosephPereira, Consultant, JP MorganChase & Co.

What Attendees Said:The dialogue between all attendeeshelps me to understand their perspectives – Joseph Pereira,Consultant, JP MorganThe interaction, sharing of ideasand course content, benchmarkingagainst other companies culturesand work practice is very useful –Michael Johnston-Smith,Singapore Chapter ChairThe understanding of my peers andtheir skills was quite an eye opener– William Taam, Director – Asia,

AIG Global Real EstateSpecial thanks to networking sponsor Hongkong Land

CoreNet GlobalLearning’sExecutiveDevelopmentProgram (EDP) willintroduce its new

Technical Series (TS) certificateprogram in Long Beach, CA, March15-19. In addition to MCR and SLCRofferings, the EDP Long BeachRegional event will feature two new Technical Series seminars —Strategy and Planning and FinancialAnalysis of Leases and Purchases.

This new foundation-building certifi-cate program covers the lifecycle of

corporate real estate, from thedevelopment of strategy through theeventual disposition of non-coreassets. The six seminars that makeup the Technical Series scrutinizestrategy, process improvement,technology, cost reduction andoperational effectiveness. Rich incontent and methods, the Seriesenhances your capability to thinkahead, anticipate needs, effectivelysolve problems, and deliver realestate services cost effectively.

The new Series begins with theStrategy and Planning seminar onMarch 15-17 and is followed by

Financial Analysis of Leases andPurchases on March 17 –19. Theseminars are ideal for those whoare new to the profession, thosewho desire to move from a specialistto generalist, or anyone who needsa refresher on a specific aspect ofthe real estate lifecycle.

For detailed information aboutthe new Technical Series and for convenient online registration,please visit the EDP website atwww.corenetglobal.org/learning/edp_seminar_series or call 1-800-726-8111.

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 4 7

NEW EDP TECHNICAL SERIESHIGHLIGHTED IN LONG BEACH

Your Key toProfessionalSuccessThe ExecutiveDevelopmentProgram (EDP) is a valuableresource for your professional

knowledge and development. The EDP Seminar Seriesis learner-focused, placing a high value on designingand delivering just-in-time learning. All employsolutions-oriented learning in a peer-to-peer environ-ment emphasizing how to apply the latest proven models for success. Seminars provide in-depth reviews of real business cases to discover answers and createsolutions to your own business challenges.

EDP SeminarsReceiveConsistently High Ratings!

■ 6.0 overall rating of all seminars (on a 7 point scale)

■ 6.2 faculty rating

■ 99.5% of attendees reportedthat they increased theirprofessional knowledge

■ 97% of attendees reportedthat they learned new waysto increase their job perform-ance (and 75% would beable to apply new learningimmediately)

■ 100% said that they wouldtake another EDP seminar

CoreNet Global Learning’sExecutive Development Program(EDP) ■ Technical Series (TS) - A foundation-

building certificate program focusedon the real estate lifecycle.

■ Master of Corporate Real Estate(MCR) Professional DevelopmentSeries - A professional designationfocused on the strategic managementof corporate real estate

■ Senior Leader of Corporate RealEstate (SLCR) Series - A certificateprogram focused on the developmentof essential leadership skills neededto drive strategies that create value.

■ Leading-Issue Seminars (LIS) - Just-in-time information on newestindustry issues and trends.

in 2004in 2004

SEMINAR SERIES:

■ For seminar details: Call 800-726-8111 or 404-569-3200 and ask for EDP staff.

■ For counseling on MCR/SLCR/TS Seminar Series:Call Midge Hinkle at 800-726-8111 or email mhinkle@corenetlearning.org

■ For Continuing Education/ProfessionalDevelopment counseling: Call Pat Pauksta 800-726-8111 or email ppauksta@corenetlearning.org

EDP CONTACT INFORMATION:

EDP participantsrecognized andhonored at theAtlanta Summit:

■ 69 Graduating MCRs

■ 66 Graduating SLCRs

■ 22 Top-Rated Faculty(those who achieve a 6.4rating on a 7 point scale)

Connecting People...

www.corenetglobal.orgVisit The CoreNet Global Career Center At

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 48

INTERNATIONAL

CorporateReal Estate2010 is thenew researchand leadershipdevelopmentinitiative ofCoreNetGlobal aimedat defining

the corporate business environmentin the future. It is envisioned that thefuture will be complex, networked,and global and will include increasedchallenges such as changing labourdynamics and business risks. Theresearch will explore the implicationsof the changing business environmenton the corporate real estate andinfrastructure executive.

The seven research topics are:■ The Changing Nature of Work

and the Workplace■ The Strategic Role of Place■ New Models for Service Delivery

and the Transformation of theService Provider Industry

■ Asset Management and PortfolioOptimization

■ Integrated InfrastructureManagement

■ The Role of Technology and the Web

■ Enterprise Leadership: Skills andCompetencies for SuccessfulCorporate Real Estate andInfrastructure Leaders

A European team of leading endusers and service providers representing the major global cor-porations is providing the Europeandimension to the research. TheEuropean team will also focus oncultural diversity and sustainabilityand how these either effect or influ-ence the work of the other researchareas A key output from the projectwill be to synthesize the results intothe learning programmes of CoreNetGlobal. For more information onCorporate Real Estate 2010 and howto get involved contact Ron Adam atradam@corenetglobal.org.

Global SummitsAsia: Mumbai, 22 – 24 March 2004Enabling Work in an IntegratedWorld: Challenges & Opportunitiesin AsiaThe subtle, but steady advancetowards an integrated, global business environment is one of themost significant long-term trends in business - transforming almostevery aspect of the way in whichfirms operate. This integrated business environment - a networkof people and assets - includesinternal resources (such as collabo-rative service support departments,business units, and global productdevelopment teams) as well asexternal partners (such as serviceproviders, communities, marketingand distribution partners). The tech-nology implications of this integratedworld are intricately connected tothe people and group networks.The Mumbai Summit will explorestrategies that are being envisionedor implemented today to prepare forthe dynamic changes associatedwith the acceleration of the integrated world. To find out moreabout Summits in Asia contactMelanie Hill at mhill@corenetglobal.org

Australia: Sydney, 8 – 10 August 2004Alignment with the BusinessAgenda: Focusing & Amplifyingyour Corporate Real EstateContributionToday’s Corporate Real EstateExecutives are uniquely positionedto add strategic value to the ever-changing and complex businessenvironment - a network of peopleand assets - that includes internalresources (such as service supportdepartments, business units, andglobal product development teams)as well as external partners (suchas service providers, communities,marketing and distribution partners).Knowledge of the nature of work,

workplaces, physical assets, locations, process management andservice delivery combine to provideinsight essential to the firm's abilityto act quickly and capitalise onmarket opportunities.

These trends and questions are thetheme and focus of the CoreNetGlobal Australia Summit 2004, aswell as the focus of the recentlylaunched Corporate Real Estate2010 Research and LeadershipDevelopment initiative. To find outmore about summits in Australiacontact Peter Chenoweth atpchenoweth@corenetglobal.org

Budapest, 19 – 21 September 2004Enabling Work in an IntegratedWorld: How Do We Prepare ForThis Future?An agile corporate real estate executive that provides responsiveand productive environmentsenables both workers and theenterprise itself to work and thrivein this emerging, integrated world.The Europe Summit will explore the innovative strategies being envisioned or implemented today to prepare for the dynamic changesassociated with the acceleration ofthe networked world. To find outmore about Summits in Europe contact Katleen Beeckman atkbeeckman@corenetglobal.org

Global LearningMCR Launched GloballyLaunched in the UK and Australia in 2003/04 and introduced to Asia in 2003, the MCR ProfessionalDevelopment Programme providesessential skills that focus on urgentand critical business issues. TheMCR designation communicatesspecial competence and successfulexperience as a corporate realestate (CRE) expert. The designationhas contributed significantly to the professionalism of corporate real estate.

GLOBAL SUMMITS EXAMINECORPORATE REAL ESTATE 2010

■ AustraliaGiselle Grynbaum, at GGrynbaum@corenetglobal.org

■ AsiaMelanie Hill at mhill@corenetglobal.org

■ EuropeKatleen Beeckman at kbeeckmanc@corenetglobal.org

For more informationon the MCR programme contact:

ENABLING WORK IN A NETWORKED WORLD

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 4 9

PPL Electric Utilities and PPL GasUtilities presented a total of 27 company funded grants for marketing,promotion and advertising initiativesaimed at attracting development inthe areas they serve in Pennsylvania.

"PPL believes that support for com-munity and economic developmentis not only good for our business butalso the right way to do business.Through our partnership approachto economic development, we focuson direct support that enablesregional and local organizations todo what they do best," said DonaldM. Bernhard, manager of Communityand Economic Development for PPLElectric Utilities.

Added to a first round of grantsawarded earlier this year, PPLElectric Utilities has provided morethan $153,000 in funding for eco-nomic development projects in itsservice area in 2003.

Blue Ribbon grants are awarded ona competitive basis, Bernhard said.In the selection process, PPL looksfor initiatives that it feels will beeffective in marketing areas that itsutility subsidiaries serve.

Of these initiatives website enhance-ment has received the most support.The project also supports seminarsto bring in website developers.Aside form website enhancementthe Blue Ribbon project has fundeddirect mail campaigns, provided themean necessary to update printedmaterials and sponsored specialevents.

"In the fiercely competitive world of economic development, we partner with organizations that represent the communities weserve. We want to help thembecome more effective in gettingtheir messages across to corporate

executives, real estate brokers andsite selection specialists," he said.

Bernhard described the applicationprocess as brief and informal. PPLlooks for applicants who show aconstant effort to improve and grow.They also want organizations tohave other grants. This gives anorganization a chance to leveragethe grant by making request forpublic grants to match PPL’s privatedonation. Once the organization hasbeen approved for a grant, PPLrequest that they complete the designated efforts before they arereimbursed. This effort has providedPPL a chance to work with nearlyall of their partners and numerousnetworking opportunities. The projecthas received positive feedback.

In addition to the marketing grantprogram, PPL helps its regional andlocal partners by funding trainingfor their economic developmentprofessionals, providing leadershipfor community and economic devel-opment activities. The PPL Companyprovides this support by contributingto the basic training of new staffmembers to economic developmentteams by granting scholarships tosend them to the PennsylvaniaBasic Economic Development Course.PPL also maintains a database ofavailable industrial and office proper-ties that covers 45 Pennsylvaniacounties. The database is accessiblethrough PPL’s Economic DevelopmentWeb site: www.pplweb.com/econdev.

PPL Electric Utilities is a subsidiaryof PPL Corporation. Headquarteredin Allentown, Pa., PPL Corporationcontrols about 11,500 megawatts ofgenerating capacity in the UnitedStates, sells energy in key U.S. markets and delivers electricity to customers in Pennsylvania, theUnited Kingdom and Latin America.

UTILITY FUNDED GRANTSSUPPORT LOCAL GROWTHAND JOBS

PPL AFFILIATE’S BLUE RIBBON PROJECT IS CHANGING THE LANDSCAPEOF ECONOMIC DEVELOPMENT

It’s an excellent way to becomeactively involved in the association.

The Trailblazers are focused exclu-sively on recruiting corporate endusers as members of CoreNet Globaland on optimizing their overall membership experience with us.Your company will get a credibilityboost by bringing new corporateend user members into CoreNetGlobal, and you’ll be adding to ourstatus as the organization definingthe future of corporate asset management.

■ You’ll be selling a great productstarting with Corporate RealEstate 2010, CoreNet Global’sindustry research and leader-ship development initiative.

■ You’ll expose them to a resourcethat gives corporate real estateexecutives the understanding ofhow new networked-basedbusiness models will fundamen-tally change the corporate infrastructure by 2010 – and the added knowledge to play aleadership role in implementingthose models.

■ You’ll introduce them to anunparalleled peer group – onethat embraces a performanceculture where our members areshaping the nature of work andinfluencing strategies support-ing the value networks of theirenterprises.

There’s never been a better time tointroduce CoreNet Global to yournon-member corporate clients, tolead them to our extensive networkof ‘Best-in-Class’ colleagues and tothe knowledge sharing to improvetheir performance.

Please contact Director ofBusiness Development SusanWoodbury at 404-589-3211 with anyquestions, or click here to learnmore about how you can "Blaze aNew Trail to Success, Recognitionand Rewards!"

CORENET GLOBAL

TARGETS TRAILBLAZERINITIATIVE TO PROMOTE

MEMBERS..continued from page 1

Get Involved!"I’ve already benefited person-ally by recruiting four new cor-porate end user members intoCoreNet Global. It’s enhancingmy value in the eyes of thesecorporate contacts. OurChapter is also benefitingdirectly from the increasedinvolvement of the new members.I’m committed to doing evenmore recruiting to build ourlocal and global base of corporate end user members.-- Sandy Lynch, President,Houston Chapter(PageSoutherlandPage)

Remember! Trailblazers are focused exclu-sively on recruiting corporateend users as new members.Only newly recruited corporateend users will be countedtoward Trailblazer recognitionand other incentives.

Everyone Wins as Recognition& Rewards Await!

The more new End User mem-bers you recruit, the greaterthe chances of winning.

Trailblazer SuccessStory!Houston’s Tracy Elkins ofHaliburton thanked CoreNetGlobal for making her AtlantaGlobal Summit experience a success by recruiting five new end user members inDecember, emerging as a topproducer in the Trailblazercampaign. Trailblazers likeTracy will be recognized at theChicago Global Summit inMay. The Chapter recruitingthe most new corporate enduser members will win thePresident’s Award for excellence in membershipdevelopment.

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 410

Receive Recognitionfor Your Organization’sInnovative Practices!Compete for CoreNet’s2004 Global Innovator’sAward!The Global Innovator’s Award –now in its fifth year – has becomethe premier award in the corporate real estate industry.

Be on the lookout for the 2004Call for Nominations, whichshould reach you via e-mail byApril 1. Winners and finalists will be recognized on stage atthe San Antonio Global Summit in November. So join the competition for this year’saward!

The Global Innovator’s Award issponsored by Equis, Gensler andDeloitte & Touche. For moreinformation, contact Tim Venableat CoreNet Global Learning(phone 404-589-3221 and e-mailtvenable@corenetlearning.org).

THE OPEN STANDARDS CONSORTIUM FOR CORPORATEREAL ESTATE LOOKS TO CREATE UNIVERSALSTANDARDS FOR THE INDUSTRY

When is a square foot not a square foot?

When the definition of a rentablesquare foot means one thing in SanFrancisco and another in New YorkCity, or that real estate deals donemetrically in Europe won’t calibratewith U.S. data base records meas-urements, it’s clearly time for moreconsistency.

This small example points to thelarger problem: the industry ofCorporate Real Estate lacks a consistent, common vocabulary."And without a common vocabulary,its difficult for us to develop a com-mon way for our Industry to interactvia the web using new technologies,much less in person, " says KeithPerske, Manager of BusinessSystems for Sun Microsystems’ corporate real estate department.

In response, OSCRE, the OpenStandards Consortium for CorporateReal Estate, has been established todrive the development of industryvocabulary and data standards. Theconsortium is made up of a numberof US firms and is working closelywith other standards groups andprofessional associations serving thecorporate real estate and corporateasset management industry.

The new consortium will developand introduce open standards currently not available to theindustry that will provide a universalresource for the consistent preparationand delivery of electronic transactions,portfolio and facility management,process management, project management, performance metrics,communications, and other assetmanagement needs.

Various interests are coalescingaround OSCRE, which began as theCoreNet Global initiative known as e-CRE. CoreNet Global is the world’sleading professional association for

corporate real estate executivesengaged in the management of thecorporate workplace. Among theprominent industry standards groupsthat have aligned themselves withOSCRE is the U.K.-based PICES, theProperty Systems Common ExchangeStandard which has been focusedon developing real estate and relatedoperating standards for six years."We've been able to deploy severalsets of standards in the UK that arenow being used by large sectors ofthe real estate industry, includingbacking from key governmentagencies," says Chris Lees, CEO of Calvis and former Chairman ofPISCES. "Our aligning with OSCREwill help leverage this effort internationally."

Other standards groups interested injoining the effort include the U.S.-based Data Consortium and NAREIM.

The new standards will developed inweb-friendly xml technology standardsthrough OASIS – the internationalgroup responsible for creating andmaintaining xml e-business standards."The more we can keep our technicalstandards open and platform agnostic,the more agile we can remain andthat’s an advantage for all players inthe real estate industry," Perske says.

Several other leading corporate orcommercial real estate-related associations are in conversationwith OSCRE regarding aligningefforts including BOMA, the BuildingOperating Managers Association;IFMA, the International FacilitiesManagers Association; ULI, theUrban Land Institute; and the AIA,the American Institute of Architects.

"The convergence of multiple organi-zations through OSCRE will reducethe complexity of buying and selling

real estate, land and other assetsthat are non-core to most globalenterprises’ primary business focus,"predicts John Igoe, Vice President of Real Estate and Site Services forPalm Solutions Corp. and Treasurerof CoreNet Global.

"The corporate real estate and assetmanagement industries still lack aresource to fill a key need," accordingto Igoe. "That need is based on thelength of time it takes to completedetailed real estate and other transactions due to the inconsistencyof terminology and systems servingthe industry across a range of geographic lines and industry categories. Data is not easily movedfrom seller to buyer as a result ofthese gaps, and it simply takes toolong to do a deal in today’s increas-ingly networked and globalized world."

Ultimately, OSCRE is expected toimprove interoperability of real estateand other parts of the corporateinfrastructure that fills the extensivestrategic and operational supportneeds of the world’s largest enter-prises and their service providers."Technology that is linked in a simpleway is the key to driving costs out ofour industry and improving our abilityto make better, faster decisions,"observes Perske, "OSCRE is thattechnology linkage."

OSCRE will become an importantasset management tool with thecapability of addressing the entirelife cycle of a facility or some othercorporate asset, adds Dave Clute,Manager, Global Operations forWorkplace Resources at CiscoSystems. "The standards establishedby OSCRE will enable the design of systems that turn our currentways of working into true workflows, encompassing all of the now-disparate information that isexchanged from the time a facility isdesigned, built and occupied to thetime it is replaced or redesigned. AndOSCRE is here to stay. It will be arobust and sustainable organizationthat can be home for all real estateelectronic data standards in all realestate sub-verticals and in all locales."

continued on page 12

"The more we can keep our technical standards openand platform agnostic, the more agile we can remainand that’s an advantage for all players in the realestate industry"

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 4 11

sponsor for the event, which isregarded as the corporate realestate industry’s leading forumfor professional development.

The Global Summit programmewill focus on Corporate RealEstate 2010, CoreNet Global’sresearch and leadership development initiative that isshaping the future vision of thechanging nature of work andthe workplace.

"As an important emergingglobal market and a centre forbusiness and commerce inCentral and Eastern Europe,Budapest provides the idealbackdrop for the dialogue ofhow corporate real estate isbecoming an enabler for changein organisations today," saidJohn Suyker, CoreNet GlobalEurope Chair.

The previously announced 2004host city of Hamburg, Germanywill serve as the site for theSeptember 2005 Global Summitin Europe.

India, site of the March 22– 24 CoreNet Global Summitin Mumbai, offers newoperating alternatives to agrowing number of globalcorporations, and CoreNetGlobal member Ashok Kumaris one of the biggest boostersof this emerging economicgiant.

"Most of the top 500 multinational companies already havea presence in India," explains Kumar, Principal andManaging Director for Gennex-CRESA Partners India inMumbai (formerly Bombay). Kumar also is founder andChairman of the CoreNet Global India Chapter andChairman of the India Global Summit Host Committee.

A recent Goldman Sachs report predicts India will havethe third-largest economy internationally by 2050 andthat by 2010 its growth could outpace China’s. "India hasthe potential to show the fastest growth over the next 30and 50 years. Growth could be higher than five percentover the next 30 years and close to five percent as lateas 2050 if development proceeds successfully," statesthe company’s October 1, 2003, report. "This will be drivenlargely by the demographic dividend India is likely toreap with a sharp surge in its working-age population."

"India provides an ideal outsourcing environment for all growing companies," adds Kumar about this growingtrend of outsourcing IT and other high-tech jobs tocountries with lower cost structures. This practice, alsoknown as offshoring, enables firms to send professionaland support services overseas for more cost-effectivedelivery while remaining under the direct control of the company.

"The low cost of highly educated labor, an abundance of property, improving infrastructure, and governmentincentives are driving multinationals to India," Kumarrecently remarked to Real Estate Forum magazine.

India Global Summit Explores Outsourcing TrendsA close-up view of global outsourcing trends will be presented at the upcoming CoreNet Global India Summitto be held in Mumbai from March 22-24. The summitpromises to offer excellent business and networkingopportunities. The program is designed to help realestate professionals advance their companies andcareers.

Summit speakers and presenters will address the themeof Enabling Work in an Integrated World: Challenges &Opportunities in Asia, exploring the rapidly evolving offshoring strategies that many global companies noware deploying.

"As the financial and entertainment capital of the country,Mumbai offers participants valuable networking and learning opportunities with key Indian business leaders,"says Kumar, who has planned special events for attendeesin is role as Chairman of the India Summit Host Committee.

More information on the summit is available atwww.corenetglobal.org.

India’s Business ClimateDuring the recent Atlanta Global Summit, Kumar sharedfrom the podium insightful details about the Mumbai andIndia business climates.

"The Indian economy is one of the world's fastest growingeconomies at eight percent of GDP growth. Business confidence is at its peak and the service and manufac-turing sector is leading the wave through IT, ITES,Pharmacy, Healthcare and Entertainment," said Kumar.

"India has emerged as the leading location for the outsourcing because India offers significant cost savings of up to 70 percent on labor and other expensescompared to other parts of the world," he added.

CoreNet Global Provides Invaluable Opportunities"CoreNet Global provides invaluable opportunities to learnabout best business practices from other commercialreal estate professionals," Kumar says. "In addition tooffering the best networking and business opportunities, I use CoreNet Global to achieve the best of the benchmarkand work-standards through enterprise partnership andworking together with business unit leaders."

"I have gained a lot from IDRC and now CoreNet Global,"he adds. "The association has helped me to learn andachieve greater value for the company’s customersthrough adopting innovative practices. Integration hasmade it broader and enabled representation from allstakeholders of real estate."

"The best way CoreNet Global can help me in the futureis through providing the best networking and learningopportunities," concludes Kumar.

ASHOK KUMAR SHARES INSIGHTS,PLANS FOR UPCOMING INDIAGLOBAL SUMMIT

CoreNet Global Member Profile

Ashok Kumar has plannedspecial networkingopportunities with keyIndian business leadersfor attendees of theupcoming India GlobalSummit in Mumbai.

BUDAPEST SELECTEDAS HOST CITY FORCORENET GLOBALSUMMIT...continued from page 1

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 412

Corporate Real Estate 2010 is the newresearch and leadership developmentinitiative of CoreNet Global aimed atdefining the corporate business environ-ment in the future. It is envisioned thatthe future will be complex, networked,and global and will include increasedchallenges such as changing labourdynamics and business risks. Theresearch will explore the implicationsof the changing business environmenton the corporate real estate and infrastructure executive.

A team of leading end users and spon-soring service providers representing18 major corporations is providing theEuropean dimension to the research.

A key output from the project will be to synthesize theresults into the learning programmes of CoreNet Global.His role includes broadening the European dimension of CRE 2010 with a major focus on facilitating the work of the European team, particularly through the firstphase, which is already underway and due to completein Spring 2004. " CRE 2010 is a tremendous opportunityfor CoreNet Global to exploit its unique position in our

industry by harnessing the vast amount of knowledgeand experience available amongst our 7500 membersworldwide," commented Adams, who will provide e-Bulletin with further updates on the progress of CRE 2010. He would also be delighted to hear from any members who would like further information andencourages members to visit corenetglobal.org/learn-ing/research/2010.jsp to learn more.

RON ADAM TAKES ON EUROPEANCORPORATE REAL ESTATE 2010 ROLE

WHEN IS A SQUARE FOOT NOT A SQUARE FOOT?..continued from page 10

OSCRE will serve corporate real estatein the same way that COVISANT unifies auto industry standards orthat SABRE has revolutionized airlineindustry transactions. In much thesame way, OSCRE constitutes animportant transport mechanism forthe transfer of data from company tocompany and from system to system,regardless of whether they are internalor external to the enterprise. Thisfluidity of data and informationexchange will enable a significanttrend toward the outsourcing of morenon-core functions to the growingglobal service provider industriesserving the internal needs of companieswith worldwide operations, accordingto CoreNet Global’s Corporate RealEstate 2010 industry initiative whichincorporates the concept of interop-erability across platforms, companiesand regions.

One example of how OSCRE willbenefit corporations is by improvingcash liquidity. By completing trans-actions and related functions fasterand more efficiently, companies willmove capital into place at a quickerpace, thus enhancing returns forinvestors, pension funds and REITS."Ultimately, the standardization willcreate a valuation system thatbridges systems between sellers tobuyers as well as between service

providers and their clients," saysPerske, describing a system thatreadily recognizes information fromoutside the company but that canstill be integrated within the financeand corporate real estate departments.

Industry groups in addition to companies with global or largeregional operations that will benefitinclude owners of and investors incommercial and corporate properties,construction companies and architects,as well as service companiesfocused on lease management, facilities operations and planning.Regardless, they will all realize costsavings and other values throughless labor and greater accuracy of data.

One other deliverable OSCRE promisesis a common vocabulary for all playersto speak with each other, outside ofsystems. "We stillneed to know howto talk to eachother, regardlessof what technolo-gy we use orwhere we arebased," Perskeemphasizes. "Howcan our systemstalk to each otherif we can’t?"

CoreNet Global is the world’s leadingprofessional association for corporatereal estate executives engaged inthe management of the corporateworkplace.

OSCRE International is a not-for-profit consortium that drives thedevelopment, synthesis, and adoptionof e-business standards that enablethe Real Estate industry to functioneffectively and efficiently.

For more information on CoreNetGlobal, visit www.corenetglobal.org For more information on OSCRE, visitwww.oscre.org. For more information on Pisces, visitwww.pisces.co.uk

ProjectAtlantaContributorListAtlanta Summit –CommunityReinvestmentChallenge

Not-for-Profit Rocky Mountain Chapter Houston Chapter Southwest Chapter Greater Dallas Chamber

of Commerce Fort Worth Chamber of Commerce Toronto Chapter Atlanta Chapter Mid-Atlantic Chapter New York Chapter S. California Chapter East Lake Community

Foundation, Inc.

Corporate The Northern Trust Company Nortel Networks Grubb & Ellis Management

Services J.J. Barnicke Ltd. Sodexho USA Sodexho Alliance CB Richard Ellis Hellmuth, Obata + Kassabaum Securitas Herman Miller Inc. Brookfield LePage Johnson Controls Booz Allen Hamilton Inc. Coca-Cola Enterprise The Coca-Cola Company Strategies In Site, Inc. Bristol-Myers Squibb Co. City Property Partners Perkins & Will Corporate Luster Ventures LLC

Personal • Gonzalez, Manuel

n/a • Morris, Evelyn

Orkin Pest Control • Barrett, Sharon

Liberty-Greenfield • Hernandez, Fred

Access Marketing & Events LLC• Abrams, Tim

CoreNet Global • Mooney, Michael

CoreNet Global • Taekla, Markus

CoreNet Global • Foster, Scott

Booz Allen Hamilton Inc. • Becket, Logan

CoreNet Global

LET’S BUILD TOGETHER

continued on page 13

Ron Adam

Ron Adam, formerly ofRegus, is nowleading theCorporate RealEstate 2010research initiative inEurope.

"Ultimately, the standardization will create a valuation system thatbridges systems between sellers tobuyers as well as between serviceproviders and their clients"

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 4 13

CORENET GLOBAL MEMBERPROFILEWhat is Sarbanes-Oxley and what does it mean to

Corporate Real Estate executives? Emerging from thewake of corporate scandal, the Sarbanes-Oxley Act of2002 was passed with the express goal of advancingguidelines and process for corporate governance. Itdevised new standards requiring companies to improverecord and document management, automate financialreporting and strengthen governance policies.

The major concepts of the Sarbanes- Oxley Act are asfollows:

1. CEO/CFO Certification Of Financial Reports - Requiresfull disclosure on financial reports and imposes criminalpenalties for violations.

2. Broadened Enforcement and Defined CriminalPenalties - Establishes stiffer penalties reachingbeyond the C-Suite.

3. Improved Financial Disclosures- Disclosures mustinclude any off-balance sheet transactions as well asdisclosures of internal controls.

4. The Formation of Audit Committees- Imposes addedresponsibilities on board members.

5. Limited Roles For Accountants And Attorneys- Placesrestrictions on fiduciaries performing multiple serviceroles in order to eliminate conflicts of interest.

The impact of Sarbanes-Oxley is not simply the estab-lishment of financial reporting requirements for publicly-held corporations. Sarbanes-Oxley Act goes beyond thefinancial data, affecting the organization by requiring astructure and mind-set for the administration of the corporation’s finances. This regimen benefits employees,investors, and clients by increasing the quality and reliability of financial acumen while concurrentlyreducing the risk of reputation loss.

Section 404Section 404, the most far-reaching component of the Act,requires management to annually assess internal controlsand calls for the development of an Internal ControlReport which shall state management’s responsibility for maintaining proper standards for financial reporting.Once defined, management must test, measure and document the effectiveness of the controls at the end ofeach fiscal year. This reporting shall be attested by anexternal auditor. Failure to gain such attestation wouldhave extreme negative ramifications for a corporation.

Section 404 compliance extends to:■ Third Party Administrators■ Information Technology Providers■ Custodial Relationships■ Client Accounting■ Investment Accounting

Compliance CostsMost corporations will spend dearly for employees andconsultants to perform the work necessary for initialcompliance and on-going maintenance of these standards.Accounting firms find themselves in a position of greaterprofitability and risk as they provide such services. Thebusiness gained in assisting corporations in preparingfor Sarbanes-Oxley is counter-balanced by the increasedliability of attesting that a corporation’s financial controlsare adequate.

Sarbanes-Oxley and Corporate Real EstateThe advent of the Sarbanes-Oxley Act should affectCorporate Real Estate executives in the following ways:

1. Vendor relationships will be made more carefully-Engagements will become more formal (complete withdocumented decision rationale) and vendors will needto comply with the Sarbanes-Oxley Act in order to beconsidered for top assignments.

2. The real estate accounting function and other businessprocesses will be outsourced at increasing levels -Corporations will opt to simplify, assign risk and gainefficiencies in these non-core activities.

3. The C-Suite, Auditors and Board Members will beginto push for adoption of "best practices"- They will berequired to personally attest to the financial processesand controls of a corporation.

4. De-centralized real estate structures will be discouraged - The development and management ofcontrols will prove much more costly and complicatedthan centralized structures.

Corporate real estate executives have the opportunity to get ahead of the wave of process rigor and scrutiny.Developing, measuring and managing processes fordelivering real estate services to the corporation is nowmore important than ever before.

MEMBER VIEWPOINT

SARBANES-OXLEY & THE CORPORATEREAL ESTATE EXECUTIVEBy Mark Rose and Jeff GrohMark.Rose@am.joneslanglasalle.com Jeff.Groh@am.joneslanglasalle.com

Mark Rose Jeff Groh

About the Authors…Mark Rose is Chief OperatingOfficer of Jones Lang LaSalle

Jeff Groh is an Executive VicePresident in Jones Lang LaSalle’s Corporate SolutionsGroup

LET’S BUILD TOGETHER

• Hart, Michele Surplus Real Estate

• Bibb, David GeneralServicesAdministration

Project AtlantaContributorList...continuedfrom page 12

“Sarbanes-Oxley Act goes beyond the financial data, affecting the organization by requiring a structure and mind-set for the administration of the corporation’s finances.”

• Grover, Cheryl n/a

• Moore, Brian Constructware

• Merklein, Gordon n/a

• Windham, Nancy HLM Design

• Spratlin, Robin Georgia Power Co.

• Manning, Mary SBC Services, Inc.

• Caldwell, Kyle AM 750 WSB Radio

• Culton, James n/a

• Dugan, Martin Herman Miller Inc.

• Heightchew, Bob GDITT

• Kiser, Ernest Coldwell Banker

• May, Steve n/a

• O'Brien, Greg Adevco Corp.

• Tablada, Sonya Facility Resources, Inc.

C O R E N E T G L O B A L N E W S • F e b r u a r y 2 0 0 414

Staubach Promotes Brian Terrell To Executive Vice President The Atlanta office of The StaubachCompany announced that BrianTerrell has been promoted fromSenior Vice President to ExecutiveVice President. Mr. Terrell leadsStaubach’s Design & ConstructionConsulting Services Practice Group(DCCS), which provides compre-hensive project management,design and construction consultingservices for clients in the publicand private sector. He is responsi-ble for over $1.6 billion of projectsfor prestigious corporate and high-er education clients such as TimeWarner Cable, BellSouth, Scientific-Atlanta, E*Trade, Earthlink, JonesDay, AIG, The University of Georgia,The Georgia Institute of Technologyand Georgia Southern University.

Ascendas hires Vice PresidentInvestment

MichaelJohnston-Smithhas joinedSingapore-based BusinessSpace Provider,Ascendas asVice PresidentInvestment. Hisresponsibilities

include Asian Investment in the R&D, Office, Retail Warehousing,Industrial and Logistics sectors. He is the current SingaporeChapter Chair.

The Beck Group Awarded Governor’sBusiness Diversification AwardThe BECK Group was presentedwith the Governor’s BusinessDiversification Award this fall at a luncheon at the Governor’sMansion in Tallahassee, FL. BECK won this prestigious award in the Innovation category for thedevelopment and application of itsDestini proprietary software. Thesoftware package incorporatesobject-oriented, parametric modeling technology to develop a rules based application for thearchitecture, engineer and construction industry. This technologyallows all aspect of BECK to workat a more productive pace.

Cooper Industries Names Nora FayVice President, Corporate AccountsCooper Industries announced inearly December that Nora Fay hadbeen promoted to vice president,Corporate Accounts, CooperConnection. In her new position,Fay will be responsible for expandingand enhancing relationshipsbetween corporate customers andthe Cooper Connection business.The Cooper Connection programcoordinates and facilitates thecross-divisional sales and marketinginitiatives of Cooper’s North AmericanElectrical Products divisions. "Nora’sextensive contacts in corporatereal estate, facilities management,architectural firms and commercial construction make her a great edition to the Cooper Connectionteam" says Martin Pint.

EMCOR Group, Inc. Names WilliamRodgers President and CEO Facilities Services Inc. William A. Rodgers, Jr. has beenelected President and ChiefExecutive Officer of EMCORFacilities Services, an EMCORGroup, Inc. subsidiary located inArlington, VA. "Bill Rodgers joinedEMCOR in 2001 as Executive VicePresident of EMCOR FacilitiesServices and has been instrumen-tal in establishing EMCOR as a fullservice provider of comprehensivefacilities services," said Frank T.MacInnis, Chairman and ChiefExecutive Officer of EMCOR Group,Inc. "Bill is an established leaderwith a proven track record in business development, implementingeffective business practices andestablishing customer relationshipsthat result in business success. His new position recognizes thesignificant contribution he has madetowards developing our nationwidepresence and increasing domesticannual revenues of EMCOR FacilitiesServices to over $650 million. Today,EMCOR companies provide facilitiesservices to approximately 1 billionsquare feet of space and generateannual revenues in excess of $1 billion."

EMCOR Group, Inc. is a worldwideleader in mechanical and electricalconstruction services and facilitiesservices.

Mintax Announces Major Expansion;Hires Four For Executive PostsMintax, Inc., announced a majorexpansion of its tax credit and government incentives consultingbusiness, hiring four executives tobroaden capabilities and serve arapidly expanding customer base.

Atty. Richard Weiss, most recentlyExecutive Director-Income Taxes at Verizon Communications, wasnamed Mintax Executive Director,Incentive Services. Michael Huber,formerly a manager at KPMG, wasnamed Senior Manager, LocationStrategies. Eileen M. Lomoriello,an accountant at Sedore & Company,was named Project Manager,Economic Development Services,and Jerry E. Reese, Manager ofOperations and ManufacturingTraining at St. Louis CommunityCollege, joined the firm as ProjectManager, Economic DevelopmentServices.

RRG Announces Appointment OfEdward A. Matisofff As Vice President

Real EstateResource Group,L.L.C, a specializedlease auditingfirm, todayannounced theappointment ofEdward A. Matisoffas Vice President.Matisoff will be

based out of RRG's Dallas office.

Matisoff, President of the CoreNetGlobal Southwest Chapter, joins RRGwith more than 20 years of finance,real estate, accounting, tax, program,and general management expertise.Matisoff was previously employedwith Verizon Communications, a Fortune10 company, one of the world’sleading providers of communicationsservices, where he most recentlyserved as Manager, Quality &Performance Assurance for thecompany’s real estate group. He created the team that wrote,“Statement of ManagementAccounting 4-0: Accounting forOccupancy Costs” published by theInstitute of Management Accountantsin 1990 and regarded as the author-itative guide to defining real estate

MichaelJohnston-Smith

Edward A.Matisoff

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Wheelin’& Dealin’

Members on the MoveFirst Stage Financing Arranged For Greater Philadelphia WorldTrade CenterThe Carl Marks Real Estate Group,a division of Carl Marks and Co. Inc. announced today that it hadarranged the first stage of develop-ment financing for the GreaterPhiladelphia World Trade Center.The loan, funded on behalf ofWaterfront Renaissance Associates,the Carl Marks affiliate partnershipdeveloping the Trade Center, con-solidates, extends and lowers thecost of the various elements of thedebt used to assemble the site. Themaster plan for the GreaterPhiladelphia World Trade Centerwill allow for the phased developmentof nearly 4 million square feet ofspace, consisting of a residentialtower, three office buildings, agarage providing for 2100 parkingspaces and over 100,000 square feetof retail space.

Binswanger/CBB Named ExclusiveReal Estate and Advisory ServicesProvider to NovaCare RehabilitationBinswanger/CBB has been chosenas the exclusive Real Estate andAdvisory Services provider forNovaCare Rehabilitation. Binswanger/CBB work with NovaCare willinclude lease transaction manage-ment, disposition of underutilizedassets and lease administrationservices for all of the company’sUS locations. "Partnered withNovaCare’s Business DevelopmentGroup, we are supplying strategicportfolio management services;ensuring their real estate portfoliois aligned with their business objectives," said Patrick Kelly,President of Commercial Mid-Atlantic,a recent affiliation.

occupancy costs. Washington, DC-based RRG is a specialized realestate accounting and consultingfirm providing comprehensive leaseauditing programs dedicated tosaving money while improvingoverall profitability.

Members on the Move...continuedfrom the left

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As the organizer of the 2000 IDRCCopenhagen-Malmo World Congress,Larry Servin, a precursor to today’sCoreNet Global Summits, Servin set aprecedent by having two cities host the event. A major attraction of the conference was the tour of the OresundLink, a 15-mile long bridge connectingSweden to Denmark and creating a neweconomic region overnight.

Like many members of CoreNet Global Larry Servin had a longinvolvement in corporate real estate before the launch of CoreNetGlobal. Servin joined IDRC over a decade ago. He joined because heforesaw the opportunity to shape Europe’s then rising profession ofcorporate real estate. During his tenure with IDRC Servin served asthe European President in 1997 though 1998.

Today as a member of CoreNet Global he works for himself as CEO ofLarry Servin AB. Servin’s primary responsibility is relocating sites.Sites, which were intended to lie on the outskirts of their cities, havenow been surrounded by the city’s growth. Servin’s professionalfocus is also corporate infrastructure. His goal is to put the individualin the center of workplace planning. He also sits of the board of several companies and eventually hopes to belong to more.

Servin say that joining CoreNet Global "was the only right thing to dowhen the association was formed." CoreNet Global has provided himwith a thorough network all over the world as well as numerous vitaleducational lessons. He feels that the industry will grow as long asCoreNet Global promotes the importance of corporate real estate forall companies. Servin believes that globalization is our key to thefuture and feels fortunate that CoreNet Global allows him the chanceto connect with professionals from around the world.

So what does this native of Sweden do when he is not running companies or sitting on boards?

True to his Swedish heritage Larry Servin swims year round in thewarm and even in the freezing sea.

He lives by the sea in Malmo, Sweden. Servin has plenty of hobbies.He performs musical concerts. Servin, who plays the trumpet,accompanied by a pianist give frequent concerts. He also enjoysriding motorbikes though Europe with his kids. He and his sonrecently rode to Austria to pick up his daughter. Together the threeof them toured the countryside’s of Southern Germany, Austria,Switzerland and Italy. Other adventures have included a recentbackpacking trip trough Malaysia with his son.

Former Base Offers BusinessBenefitsA new master plan and over $6 million in facility upgrades positionsMerced County’s Castle Airport,Aviation and Development Center asone of California’s hottest new business properties. Strategicallylocated in Central California, the former Air Force base offers a variety of business benefits, espe-cially to those involved in aviationand international commerce.

With a 12,800 foot overstressed run-way the airport’s assets are ideallysuited for air cargo, maintenanceand other commercial aviation busi-nesses. The runway’s constructionallowed it to serve as a designatedalternate space shuttle landing siteand offers the capability of landingany existing aircraft. The facility canalso accommodate 100 parked 747swithout infringing upon runway operations.

Infrastructure upgrades, whichinclude a dual loop fiber optic system,offer high tech capabilities. In addi-tion, Castle Airport is a designatedforeign trade zone with internationallanding rights and the location is adesignated LAMBRA site, offeringbenefits similar to enterprise zones.

John Fowler, director of the MercedCounty Department of BusinessOpportunity, says the county is nowseeking a master developer for 700of the airport-business park’s 1,800acres; 1,100 acres are dedicated toairport facilities.

General Electric Selects Cushman & Wakefield as TransactionManagement ProviderCushman & Wakefield announcedtoday it has been retained byGeneral Electric Co. as one of threeexclusive service providers for GE’sreal estate interests. Under terms

of the agreement, Cushman &Wakefield’s Brokerage and CorporateServices divisions will provide transaction management for a portfolio of commercial real estateinterests in the United States."Cushman & Wakefield has a robustplatform of services and expertiseto assist GE's Corporate Real Estate

group in increasing efficiency, addingvalue and improving process execution,"said Harry Stein, Director ofCorporate Real Estate for GE’s RealEstate Services Operation.

Countrywide Home Loans Has MoreThan 300 Formal Strategic AlliancesCountrywide Home Loans, Inc.announced that it currently has more than 300 formal business part-nerships under its strategic allianceumbrella. The company works primarilywith real estate brokerages, homebuilders and financial services companies to provide complete one-stop shopping services for home buyers across the country.

As part of its strategic alliance services,the company offers joint mortgageventures through CountrywideMortgage Ventures, LLC. These arecapitalized through a cash investmentcontributed equally by bothCountrywide and the strategic partner.Each partner invests in the ventureand receives a return on investmentcommensurate to their ownershipinterest in the venture.

The company also creates a win-winsituation by offering desk rentalagreements (DRA) where aCountrywide loan officer providesonsite mortgage services for its business partners. With its one-stopshop capabilities, this is an effectiveway to convert customers at thepoint of sale. In turn, Countrywidepays fair market value rent for thespace it leases.

Wheelin’ & Dealin’CoreNet Global Member Profile

Sweden’s Larry Servin Helped Shape CoreNet Global’s Future in Europe

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Corporate end users withglobal or global-regionalresponsibilities will learnabout how companieslike yours are integratingglobal operations andoptimizing portfolio performance through thenetworked enterprise.This is a key reason whywe have selected theconference learning theme

of Enabling Work in an Integrated World: Challengesand Opportunities in Asia.

In turn, providers of corporate services will also benefit by gaining insight on how the globally integrated workplace can add to a company’s operating efficiency,productivity and profitability. The learning agendaincludes a strong array of programs illustrating how end users are adding to the competitive advantage of their enterprise – from the global, Asia regional and India-based perspectives.

Economic developers will also gain an edge by attending.Strategic location decisions will become even moreimportant in coming years as companies seek proximity

to skilled workers, markets and customers. By under-standing the new approaches of corporate clients, youwill be better able to serve their changing needs.

Moreover, be among the first toknow how Corporate Real Estate2010 – CoreNet Global’s industryinitiative defining the changingnature of work and the workplace– will also change the way companies do business on an integrated global scale.

Education Programmes Include:■ Workers and the Workplace■ Implementing Real Estate Projects in India■ Enterprise Partnerships■ Global Portfolio Optimization Strategies■ Real Estate Outsourcing in Asia and Beyond

Other Reasons to Register Today:■ Corporate Real Estate 2010■ Our Journey to India’ Corporate Panel ■ Keynote Speakers to set the big-picture view■ Educational Site Tours

OPTIMIZE YOUR GLOBAL PORTFOLIOCoreNet Global members manage $1.2 trillion (US) inworldwide corporate assetstotaling 700-billion square feet of owned and leasedoffice, industrial and otherspace. With 7,500 membersrepresenting large corpora-tions around the world,CoreNet Global(www.corenetglobal.org) operates in five globalregions: Asia, Australia,Europe, Latin America andNorth America.

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