Consumer Goods Companies Scrutinize CRE Portfolios As Technology Spending Lags

Consumer goods companies are focusing on supply chain disruptions and shifts in consumer spending habits to better manage their real estate portfolios, according to a JLL report.

The company’s findings are based on 48 responses from consumer goods industry leaders. Close to 48% of respondents said their organizations

The firm’s latest corporate real estate pulse survey included 48 responses from consumer goods industry leaders. Nearly 48% of respondents said their organizations are examining supply chains, “a notable 10 percentage points above the all-industry rate of 37.9% and the sharpest gap among priorities tracked in the survey,” according to JLL.

While the data is essential for decision-making, JLL said that technology investment has yet to catch up, with 16.7% of consumer goods respondents anticipating growth in their CRE technology budgets over the next three years, compared to 30.6% across all industries.

Also being examined is the workforce, as 39.6% of respondents said they’ve downsized their labor, compared to 31.6% across industries. Additionally, 37.5% said they expect office use rates to increase over the next 12 months.

At the same time, 31.3% of respondents expect their CRE budgets to increase, compared to 24% across industries.

“Where those dollars go matters: upgrades for higher production, space for more employees, or better utilization data that reveals opportunities to consolidate or redirect investment,” according to JLL.

JLL recommended building a reliable data foundation, using technology to increase capacity and implementing a flexible portfolio strategy.

“A shopper can put one product back on the shelf,” the report said.

“A consumer goods company has to decide what happens to the factory, warehouse, office or brand behind it. That decision starts with knowing what you have.”