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Jones Lang LaSalle survey reveals that less than 40 percent of corporate real estate executives feel well-prepared to strategically realize nine emerging senior management priorities
SINGAPORE, LONDON and CHICAGO, June 20, 2013 — Increasing pressures from the C-Suite are challenging corporate real estate departments’ current resources and staff expertise, according to the biennial Jones Lang LaSalle (JLL) Global Corporate Real Estate Trends report, which polled 630 corporate real estate executives in more than 39 countries. The report identifies the top nine demands that corporate real estate teams expect within the next three years, and simultaneously tracks that many respondents collectively feel unprepared and under-resourced to fulfil these rising expectations.
“Greater engagement with the C-suite and more alignment between business and corporate real estate strategy is a welcome challenge,” said Doug Sharp, President, JLL Americas Corporate Solutions. “However, our survey shows that a large percentage of corporate real estate departments have not been given the resources or training that they need to fulfil rising productivity expectations.”
Of the executives surveyed, 68 percent face increased demand from senior business leaders to enhance portfolio productivity. Productivity improvement was an emerging trend in JLL’s 2011 report – now increased to a “high expectation.”
Nine Rising DemandsFollowing are nine demands that corporate real estate executives are facing during the next three years – which they are challenged to realize:
Figure 4: Increasing strategic demands being placed on corporate real estate executives. Source: JLL 2013 Global Corporate Real Estate TrendsAt the same time, only approximately one-third of global corporate real estate leaders surveyed feel “well-equipped” to meet the rising level of new demands being placed upon them.
Figure 6: Corporate real estate leaders’ ability to meet new demands. Source: JLL 2013 Global Corporate Real Estate Trends Equipping CRE teams typically requires investment, however, and entrenched resistance to capital expenditure can be a difficult hurdle to clear. “Our survey reveals that 48 percent of CRE executives view financial constraints as their greatest limitation to adding more strategic value to their businesses, while 34 percent also cite lack of effective data and analytics,” observes Christian Beaudoin, JLL Head of Corporate Research, Americas. “Many survey respondents stated that they lack the technology and resources to strategically transform their portfolio, while also cutting costs.”
This deficiency is also noted by CoreNet Global in similar research. “JLL’s focus on cost-versus-revenue is connected directly to our industry’s long-running paradox of efficiency-versus-effectiveness,” said Richard Kadzis, Vice President of Strategic Communications for CoreNet Global, the world’s leading professional association for corporate real estate executives. “The Corporate Real Estate 2020 research forecasts how the corporate conversation will shift from cost cutting to value creation, and JLL’s study can help shed more light on this important shift.”
One broader strategy already being implemented is CRE teams working more closely not just with the C-suite, but also with other key support functions such as HR, finance and IT. As Global Corporate Real Estate Trends reports, the formation of collaborative organizational structures, such as shared services, is likely to increase over the next three years. This finding was also validated in Corporate Real Estate 2020, which reads, “the intersection of collaborating support functions will help ensure that enabled employees are more productive, better equipped and have higher satisfaction levels – resulting in significant returns for the corporation.”
Wondering where your firm stands? Find out how your organization compares in key areas such as outsourcing plans, workplace strategy and resource capacity. Answer five quick questions via JLL’s interactive online tool and receive an instant comparison of your responses with the survey result norms. To request a full copy of the report, visit www.jll.com/globalCREtrends or download a presentation on JLL’s Slideshare profile. Social media users can also engage in the conversation about the future of corporate real estate on Twitter using #CRETrends.
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management. For further information, visit www.jll.com.
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