Corporate America emphasizing savings over style.

Cost-conscious corporations are not only down-sizing their staffs, they are cutting both amount and cost of their workspaces. And the gleaming pride of many blue-chip companies, their "signature or trophy buildings" that once dominated central business districts all over the nation, are fast disappearing, according to executives of The Commercial Network.

The Equitable Life Assurance Co., recently announced its departure from its decade - old Midtown Manhattan tower, joining such major corporations as IBM and AT&T in New York, Bechtel and Chevron in San Francisco, and Sears in Chicago in finding other ways to meet its space needs.

"Traditional large corporate users are re-evaluating and redefining their needs," said Patrick Moultrup, president of The Commercial Network, which, with 140 member offices worldwide, has a comprehensive view of the trend. "In a fiercely competitive and efficiency-driven environment, they are finding ways to get more for their dollar."

Moultrup notes that real estate outlays are, on average. second only to salaries as a cost of doing business.

Even in go-go growth areas like Raleigh, NC, companies are minding the bottom line. There, IBM trimmed its square footage per employee and moved from several downtown areas to consolidate in a nearby research facility.

"Big Fortune 100 companies won't go for the glamorous, glitzy, high-priced space," Moultrup says. "They don't want bells, whistles and fountains. They want functional, flexible and less cost per square foot within the needs of their business."

In Des Moines, one of the healthiest property markets in the country, the Equitable of Iowa is moving from the large downtown trophy it built and occupied for years to a less conspicuous build-to-suit in the suburbs.

"Look, the '80s are over. It's the '90s and everybody's looking at the bottom line," says Kathleen Collins of The Commercial Network's New York office. "Companies have to down-size and be more cost-effective. That means not leasing a million square feet on Park Avenue. It doesn't make sense today."

As to the fate of the signature buildings left behind, they are faring surprisingly well. Both the former Chevron and Bechtel buildings in San Francisco, which were built for their signature occupants and had not been on the market before, have filled rapidly with a new breed of tenants, as have the signatures in New York.

Some buildings have required reconfiguring to appeal to the smaller tenant market they have largely attracted. Chicago's world-famous Sears Tower, which lost its namesake to a nearby suburban campus, has been given a massive facelift.

"The amenities were terrible, but they spent a fortune for a new lobby, atrium and common areas," Moultrup says. "It's a complete turnaround and the place is pleasure to be in. While the loss of a major tenant can be difficult, the landmark now has a new lease on life. The tower is re-energized and bringing in quality tenants. The change was ultimately positive."

Moultrup also noted that not only was Sears able to achieve its goals, the Sears Tower now has a bright future. The kind of tenants finding a home there are the engine of new job creation. The process has been positive in the majority of the markets.

Another force accelerating this trend has been mergers and acquisitions, especially in the banking industry. Reconfigured organizations are moving to consolidate duplicate operations. In one recent transaction. First Interstate Bank after its merger with Wells Fargo Bank, is leaving its namesake building in San Francisco. Back east, the market is waiting on the impact of the Chase Manhattan/Chemical Bank merger - both with substantial headquarter facilities in the New York area.

"American corporations today are focused on marketplace fundamentals, which means providing the most value to their customers at the lowest cost," Moultrup concludes.

"Thinking differently about their real estate costs help them structure their overall operations more efficiently. That's the reality today."

The Commercial Network (TCN) is an international real estate organization with 140 member offices worldwide, including the US, Canada, Europe, Asia and the Pacific Rim.