In a recent column, one of my colleagues, senior managing director John Gallagher, advised, in part, the need for corporate real estate departments to address their constituents' desire for flexibility. John says corporations are demanding more flexibility such as shorter lease terms and flex space. So, let's talk about what is driving the need for flexibility today at the macro level.

If you've ever driven east from Amarillo to Oklahoma City, you know the road is flat and you can see for miles. However, as you progress through Oklahoma City and then to the turnpike to Tulsa, the gentle up and down of the highway creates the illusion that the horizon is nearer until you crest the next little hill.

In business, the horizons come faster than they do in Texas or Oklahoma, which creates a dilemma for the CRE professional. How do you plan for long-term occupancy when long-term occupancy according to your customer may be three years? Quite simply, business cycles that used to be 10 years long became five years in the 90s and have shortened to three years (or less) in today's economy. In some industries even three is a stretch.