corporate real estate at a crossroads: cost vs · pdf file4 australian corporate real estate...

Corporate Real Estate at a Crossroads: Cost vs Value Australian Corporate Real Estate Trends 2013

Jones Lang LaSalle 3

executives globally and 52 specifically from Australia. The paper explores how CRE can shift the focus to value creation, whilst still maintaining vigilance on cost efficiency. We identified four key ways for CRE to achieve this change in focus:

1. Alignment with corporate strategy and other related business enablement functions

2. Demonstration of productivity improve-ments

3. Preparedness to meet the demands of the C-suite and navigate the barriers to success

4. Harnessing big data and leveraging analytics to improve decision making

IntroductionHaving been through some of the most challenging economic times in recent history, we believe corporate real estate (CRE) is at the crossroads. Like many other industry sectors, the global financial crisis (GFC) forced the hand of CRE executives the world over to have an unrelenting focus on cost. During the GFC, CRE delivered its fair share of cost savings and cost avoidance. Now in a post-GFC environment, cost efficiency is here to stay and is viewed as business as usual. But today, CRE finds itself at the crossroads, tasked by the C-suite to shift the focus from cost to value creation, and having to deliver on both sides of the cost vs value equation.

In this paper we discuss the findings of our second global CRE survey, which generated responses from 545 senior CRE

Tony Wyllie National Head of Integrated Portfolio Services [email protected]

4 Australian Corporate Real Estate Trends 2013

The drive for cost efficiency will not leave the boardrooms of corporate Australia despite the signs of recovery in the global economy. According to the survey 86% of CRE executives report increased demand from the C-suite for reducing direct real estate costs and 84% limiting exposure of future real estate costs (Fig 2). This becomes increasingly challenging to sustain with much of the ‘easy’ savings already banked.

What’s Changed? Since our last survey was completed in 2010 when the world was still feeling the full effects of the GFC, a number of things have changed:

1. There is a heightened degree of risk aversion in CRE, like most of corporate Australia

2. There is greater demand for short-term tactical strategies that are largely focussed on cost

3. There is increasing demand for longer-term focus on value creation

The GFC left a number of long-lasting legacies - the drive for cost efficiency, a heightened risk aversion, greater transparency of data for decision making, as well as elevating the role of CRE within the organisation as a key influencer in the cost efficiency game. According to the results of our survey, 47% of organisations in Australia are more risk averse today than they were in 2010 (Fig 1).

A lot less risk averse

Slightly less risk averse

Slightly more risk averse

Much more risk averse

6%

24%33%

22%14%

No change

Figure 1: Appetite for risk

86%86%84%84%80%73%55%24%14%

Reducing direct real estate costs

Challenging the business of its presumed space needs

Limiting exposure to future real estate costs

Increasing the utilisation of existing buildings in the portfolio

Reducing the run costs of the real estate portfolio

Getting clear on the portfolio size and opportunities via data collection and management

Reducing the size of the portfolio

Running own vs. lease assessments

Increasing the size of the portfolio

Figure 2: Tactical demands being placed on CRE

Question: How are the demands of senior leadership/ C-suite on the CRE changing in the following areas? Base: (those responding demand is increasing)

Question: Compared to 2010, how would you rate your business’ attitude to risk?


This year’s survey shows competing pressures are being placed on CRE, with the C-suite demanding tactical cost savings, whilst at the same time turning up the dial on strategic imperatives around productivity, mobile working, flexibility and sustainability (Fig 3). The expectation is for CRE to not only contribute to, but take more of a leadership role in transforming the work environment and enabling real estate to support different styles of work including remote working, and attracting as well as retaining talent.

Figure 3: Increasing strategic demands being placed on CRE

Question: How are the demands of senior leadership/ C-suite on the CRE changing in the following areas? Base: (those responding demand is increasing)

84%78%78%72%

59%56%43%

Enhancing productivity of the real estate portfolio

Transforming the quality of the portfolio/workplace

Enabling remote or mobile working

Presenting scenarios and solutions to the business

71%Bringing more flexibility to the leasehold portfolio, creating on demand space for the business

Driving the sustainability agenda

Attracting and retaining talent

Delivering a platform for growth in select markets

60%Aligning CRE with business drivers and functional areas


CRE AlignmentKey Trend 1 The CRE mandate was strengthened during the GFC, where many CRE executives achieved

heightened visibility as a large cost contributor and therefore potential saver inside their organisations. Hard-line reporting into the C-suite strengthens the strategic alignment of CRE to business strategy. Australia has 69% of CRE executives reporting directly into the C-suite which is higher than the global average of 58%, evidence of our mature real estate market (Fig 4).

Total Australia

C-Suite Managerial Executive Operational Other

58%

69%

26%22%

14%9%

1% 0% 1% 0%

Figure 4: CRE reporting structure

Question: To what level of the organisation does the global head of CRE currently report?


Figure 5: Alignment of CRE strategy to the organisation’s broader business strategies and corporate goals

Currently

In 2-3 years time

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Moderately alignedEntirely aligned Minimally aligned

52% of respondents described the alignment between corporate and CRE strategies as being entirely aligned, with this proportion predicted to grow to 82% over the next three years (Fig 5).

Question: To what extent is your CRE strategy aligned to your company’s broader business strategies/corporate goals?

Question: What planning horizon is applied to business strategy and CRE strategy?

Evidence of the alignment between CRE and business strategy in Australia is the consistency of planning horizons. Figure 6 shows that there is a good balance between short and longer-term planning horizon for both the business and CRE strategy. This is a marked change from our survey of two years ago. The GFC exposed a deficiency in strategic planning, being the need for shorter-term tactical strategies that allow organisations some flexibility in their portfolio, to sit alongside their medium to longer-term strategic plans. It seems that CRE has learnt its lesson and placed a greater emphasis on contingency planning for unforeseen circumstances. Two years ago 69% of Australian CRE executives had a planning horizon of three years or more, compared to 51% today, showing better alignment with shortened business cycles (Fig 6).

Figure 6: Planning horizon of CRE and business strategy

10% 39%8% 35% 57%

51%

17% 52% 31%13% 49% 38%Rest of Asia Pacific

Australia

CRE Strategy

Business Strategy

3 years or more1-3 yearsUp to 1 year


Alignment with business strategy is a critical success factor for being able to deliver on value creation, which will have a flow-on effect on cost. Alignment with other internal departments, including Information Technology, Finance and Human Resources is also key to being able to perform against the C-suite demands. In Australia there is a realisation from CRE that engagement is needed with these functions to deliver on productivity improvements, talent attraction and retention and mobility. But the majority of engagement is on an ad-hoc basis rather than strategic shared services integration. The exception is finance, where 63% of CRE respondents report a shared services integration with this department, which is higher than the rest of Asia Pacific at 38% and the global average of 51% (Fig 7). The heightened focus on cost as an influencer on real estate strategy in Australia has strengthened the alignment with Finance. In many expanding Asian markets, whilst cost has been a consideration, there is often pressure to have the real estate in place to support a growing business and therefore speed to market is of higher importance.

CRE executives recognise the need for greater alignment to form a guiding coalition that will together be able to deliver enhanced value to the business. Over the next two to three years, CRE executives expect greater collaboration in a shared services structure with the other support services.

Figure 7: Level of shared services integration today and three years from now

Today Three years from now

HR

IT

Finance

23%50%

38%62%63%

73%

Question: What level of shared services integration has CRE achieved in your organisation with the following business functions, now and in three years time?


Figure 8: Involvement of procurement in CRE strategy

Alignment with procurement is another way in which CRE can maintain vigilance on cost savings but shift the focus to value creation. In Australia, CRE engagement with procurement is on a much lower basis than the rest of Asia Pacific and indeed globally. Australia has a highly transparent real estate market where the procurement of real estate services has historically been undertaken by the CRE team. This compares to the Asian markets that are more opaque and require greater control from the procurement team. Only 19% of Australian respondents indicated that procurement was involved on a permanent basis compared to the global average of 36% (Fig 8). Not only that, 35% of those who said procurement was involved on either a permanent or ad-hoc basis believe that procurement have limited knowledge of what it takes to secure real estate services. However, this is likely to change in the future as Australia moves more towards the global model of greater procurement engagement. Clearly, some education is required to better align the procurement function with real estate strategy.

Question: Is your procurement team actively involved in CRE?

Key Recommendations

Get close to the discussion on corporate objectives and better understand the decision-making process of the C-suite

1 Create real estate strategies that connect with the corporate objectives2 Build the value proposition

and the supporting business case for real estate strategy investment

3

Total Australia

36%

19%

On a permanent basis

33%37%

On an ad hoc basis

23%

38%

Not involved

6% 4%

We have no procurement team

2% 2%Others


Productivity improvements can take many different forms within an organisation, from asset to business, people to workplace. Figure 9 below shows that there are high expectations from the boardroom for CRE to deliver workplace productivity (in 74% of organisations in Australia), people productivity (71%), business productivity (63%), although lower expectation at the asset level (only 34%). This lesser focus on asset level productivity can be explained by a lot of the easy wins having already been achieved.

Driving productivity gains

Key Trend 2:

Figure 9: Company expectations on productivity outcomes from CRE

Workplaceproductivity

Peopleproductivity

Businessproductivity

Assetproductivity

74% 71% 63% 34%

Question: What productivity outcomes is your company expecting the CRE function to deliver?

CRE has an important role to play in driving productivity. At an asset level, productivity gains can be achieved through cost savings, reduced cycle times, procurement savings, energy savings, increased speed to market and extended life of plant and equipment. This can be extended to the portfolio level to minimise vacancy, eliminate redundant space and leverage the portfolio to best support the business needs of each location rather than use a one-size-fits-all approach.

At the workplace level, there is the ability for CRE to influence the productivity of the space provided for employees through increased utilisation, more supportive work environments, extending the life of the fit-out and sustainability measures.

Workplace strategy has been high on the CRE agenda for a number of years, driven by a desire to leverage real estate to create an environment that enhances employee satisfaction, encourages collaboration and innovation, as well as creates a cohesive culture and brand differentiation. Cost too has been a driver, with 70% of companies in Australia increasing utilisation rates and 65% pushing up densities over the past three years (Fig 10). This is only set to increase with organisations intensifying their focus on utilisation and density, as well as quality of space. Only 29% of corporates surveyed in Australia are expecting to increase the size of their portfolio over the next three years.


Figure 10: The extent of workplace transformation

Incr

ease

dDe

crea

sed

The last three years Next three years

Quantity Quality Utilisation Density

50%

30%

29%

53%

71%78%

70%76%

65%76%

2% 4%14% 12% 14% 12%

Question: To what extent has your global corporate workplace transformed over the last three years and is expected to transform over the next three years in terms of quantity, quality, utilisation, density?

CRE’s role in delivering a productive and inspiring workplace, will impact on the productivity of people. Research has shown that employees feel they are more productive in a work environment that offers spaces to support the different type of work they do, be it individual concentrated work, collaboration with their team or client-facing. 71% of Jones Lang LaSalle’s own employees in Sydney stated their new activity based work environment (with eight different settings) improved their overall productivity compared to just 24% in the former, traditional office environment with assigned desks. Indicative statistics also point to a reduction in absenteeism, increased retention rates and higher staff motivation. Jones Lang LaSalle’s employee engagement score increased by 11% points to 71% following the move to an activity based working environment.

However, workplace environments cannot be expected to single-handedly drive employee productivity, with many other factors playing a role including remuneration, scope of work and quality of work relationships. Similarly productivity at the enterprise level relies on a myriad of influences, but CRE can contribute through positively impacting the bottom line with a reduced cost base or improved speed to market by fostering collaboration and cross selling.


Driving productivity gains isn’t the only component of value creation. C-suite expectations are also high around flexibility and fluidity of not only their employees but also their real estate portfolio. 78% of respondents stated there were increasing demands from the C-suite for enabling remote and mobile working (Fig 11). Given the changing demographic profile of the workforce, with Generation Y becoming more established and Generation Z entering companies, there is a requirement for organisations to provide more choice and flexibility when it comes to work location for their employee base. For example, more collaboration space vs personal space, improved technology tools to support the way in which Gen Y and Gen Z are accustomed to communicating and working, as well as an environment that supports trust-based leadership.

71% of respondents also cited increased demands for flexibility in their leased portfolio. Adopting flexible workplace strategies is one way of achieving flexibility, giving organisations the ability to add and contract headcount without expanding or shrinking floor space. If a flexible workplace strategy is implemented across an entire real estate portfolio, rather than just one location, the organisation will have the benefit of a more flexible and transportable workforce. There is the ability to move people around based on client demand without the need for re-stacking every time a new client or project is won.

These workplace strategies by their very nature afford flexibility through space utilisation, rather than having to negotiate expensive options and contracts. As a result, organisations may opt to take longer-term leases, resulting in a superior incentive, more simplistic lease structure and more attractive rental level as they are able to offer the landlord security of income. Thus the lease negotiation process may be less focused on getting the right expansion and contraction options, but rather on extracting the best financial deal on a longer term lease and not having to worry about building-in flexibility.

However if a flexible workplace strategy is not the chosen path, there are other avenues to achieve portfolio flexibility. First and foremost is engagement with internal stakeholders to be able to anticipate demand and have strong alignment between business and real estate strategy. Occupied space should be divided into core and non-core, with flexibility and engagement with stakeholders paramount for core space.


Essentially flexibility entails the ability to expand and grow or consolidate and contract your real estate footprint. In terms of contraction, lease flexibility can be achieved by taking longer-term leases over core-space and shorter-term leases across non-core space. Taking multiple leases over a larger space is another way of achieving flexibility, to allow disposal of single floors if required, although this will come at a cost. Negotiation of flexible terms around sub-letting and lease assignment is also a strategy for more easily contracting out of space. Ensuring built infrastructure such as a data centre is located outside the enterprise building will better allow for re-stacking or contraction if required.

Considering expansion, there are negotiation strategies such as the first right of refusal options over available space in their building and alignment of expiries to make whole-of-business decision. But perhaps more important, is developing robust accommodation standards and building requirements (such as larger floor plates or space that can accommodate higher densities) that can easily be applied to new space that the organisation is considering to support business growth. In addition, streamlining the internal procurement decision making around real estate will speed the process of acquisition of new space.

Question: How are the demands of senior leadership/C-suite on the CRE team changing in terms of the following areas?

Figure 11: The changing demands of senior leadership

Total Australia

78% 78%

55%

Enabling remote and mobile working

65%

Transforming workplace quality

56%

Bringing more flexibility to leased portfolio

71%

84%

Enhancing productivity of real estate portfolio

68%

Key Recommendations

Consider alternative workplace solutions that deliver a holistic workplace experience by integrating technology, human capital and facility operations

1 Define and establish a productivity framework that directly aligns with corporate objectives and is agreed by the C-suite

2 Measure and track key productivity contributors to demonstrate real estate’s value

3


CRE Preparedness and Barriers to Success

Key Trend 3 : CRE executives recognise the increasing demands of the C-suite and the requirement to shift the focus to value creation, as well as deliver on cost metrics, although not all believe they are equipped to do so. Only 30% of respondents felt they were well equipped to meet all demands of the C-suite, with 62% stating they could meet most demands.

Figure 12: Meeting the demands of the C-suite

Figure 13: Constraints most hindering CRE from enhancing itself as a strategic value-add

Well equipped to meet all demands

30%

Can meet most demands

62%

Ill equipped to meet the demands

8%

Question: In your opinion, what are the top two constraits that are hindering CRE from enhancing itself as a strategic value-add to your organisation?

Question: How well equipped do you feel to meet the demands of the C-suite?

The reasons most commonly cited for not being able to meet the demands of the C-suite or barriers to CRE enhancing its strategic value were - financial constraints (60%), skills and knowledge (29%), data and analysis (25%), C-suite commitment (25%) and fragmented team (23%) (Fig 13). Financial constraints being the most significant barrier to enhancing CRE strategic value is not altogether surprising. It is more challenging to demonstrate tangible outcomes of ‘value creation’ and therefore harder to secure the funding required to execute real estate strategies that will deliver on this side of the equation.

Total Australia

48%

60%

Financial constraints

34%25% 25%

Data and analytics

27%23%

Fragmented team

26% 29%

Skills/knowledge

32%

C-suite commitment


27%Lack of investment capital

12%Employee resistance

13%Difficulty to change management styles

12%Lack of management engagement

8%Difficulty to build a compelling business case

4%Complexity arising from cultural diversity

6%Technology difficulties

6%Lack of opportunity

2%Lack of continuing C-suite sponsorship

8%None

4%Others

Figure 14: Factors limiting workplace transformation

Looking specifically at the workplace, there are barriers that are recognised as constraints to successful workplace programs (Fig 14). Again the lack of investment capital ranks highest at 27% of respondents, proving the need to build a compelling business case that shows the initial investment will deliver a positive return over the life of the lease with fewer, expensive option rights required, as well as the positive impact it will have on culture, employee engagement, retention and motivation. Other barriers to workplace transformation were existing management styles (15%) and employee resistance (12%) – both of these highlight the need for a robust change management program that addresses all levels of stakeholders and provides training for managers to move from a command and control style of management to trust-based leadership.

Question: What are the limiting factors to driving workplace transformation?*Figures may not total 100% due to rounding.


Figure 15: Elevating the CRE function

Figure 16: Capturing the Attention of Stakeholders

Question: Below is a list of behaviours/attributes that have the potential to elevate the CRE function. Please select the three most important to your organisation.

The Australian respondents to our survey believed that demonstrating good business acumen would have the biggest impact on elevating the CRE function inside their organisations (Fig 15). This comes back to the alignment with corporate objectives and being able to articulate how real estate can be a value contributor to business performance. Fundamental real estate skills such as presenting real estate options and scenarios were also considered important, as was being an influencer and challenging the status quo. Essentially it is being able to clearly articulate the value contribution that CRE brings that will capture the attention of the internal client.

28%27%Innovation

Efficient stakeholder management outside CRE

26%6%

Adding new skills20%17%

Communication skills16%22%

41%35%Challenging the status quo

41%59%Business acumen

38%39%Presenting real estate options

35%23%Providing data and insights

30%25%Improving internal reputation of CRE

Total Australia

ValueAdd clear value to

stakeholder knowledge and decisions

KnowledgeLeverage this attention to deepen your knowledge of

the stakeholder’s business

EnhanceUse knowledge to enhance

your service offering and add more value

AttentionAs a result, stakeholder gives greater share of

attention and are more open


Figure 17: Real estate delivery models – now and three years from now

Question: On a scale of 1 to 5, where 1 is fully in-house and 5 is fully outsourced, how would you best describe the current and future delivery of the following CRE services.* Figures may not total 100% due to rounding.

A large majority of respondents in Australia (64%) maintain that outsourcing represents a strategic relationship where partnership value is assessed over the long-term as opposed to a minority who see it as a tactical transaction, mainly with the lowest cost supplier. A growing number of organisations are clearly looking beyond tactical out-tasking and instead seeking to capitalise on the greater value and synergy that comes from deeper, strategic partnerships with service providers. This is one way in which CRE executives are bridging any gaps in being able to deliver on the demands of the C-suite.

18%13% 18% 31%20%7%15% 15% 41%22%

14%28% 19% 16%23%5%26% 21% 26%21%

33%23% 21% 5%18%9%19% 30% 26%16%

13%13% 36% 20%15%9% 26% 24%26%

18%

7%22% 24% 18%29%9%18% 13% 38%22%

27%52% 14% 7%20%37% 20% 9% 15%

Energy and sustainability services

Lease administration2%35% 28% 20%15%

4%26% 7% 37%26%

Transaction services

Project management

Portfolio and facilities management

Portfolio strategy

Property management

Today

Three years from now

Fully outsourced43Fully-in-house 2

Key Recommendations

Outsource operational aspects to spend more time on stakeholder management

1 Change the conversation from cost to value2 Recognise the compression

in business cycles, talk the business language and demonstrate both the short-term and long-term paybacks of real estate strategy to the business

3


At a facility level

At a portfolio level

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Limited capability

No capability

Everything we need

Adequate capability

Big DataKey Trend 4: Data has never been more critical to the value perception of CRE internally. Data that is

relevant, data that helps business decision making and data that minimises risk. Yet CRE professionals told us that they are currently lacking with their ability to extract metrics. At a facility level, only 22% of respondents stated they had everything they needed to extract real estate metrics and only 20% at a portfolio level (Fig 18).

Figure 18: Ability to extract metrics

Figure 19: Improvement in ability to extract metrics since 2010

The good news is that there has been an improvement in the ability to extract metrics since the GFC, but this was largely attributable to data collection by the CRE team rather than investment in technology or lease administration resources (Fig 19). This highlights one area where the CRE team have focused at a tactical level to meet the increased transparency requirements demanded by the C-suite, but could also present an opportunity to outsource this tactical delivery in order to focus more on the strategic input and decisions based on enhanced data.

Question: How would you rate your current ability to extract real estate metrics (such as space held, costs, vacancy) on demand?

Question: Has your ability to extract real estate metrics improved since 2010? And what has driven this improvement?Total Australia

75%71%

Data collection by the CRE team

38%

18%

Commitment to spend on data collection and data systems

22%16%

outsourcing of lease administation to a service provicer

7%11%

Others

32%

21%

Purchase and population

of a database system

73% said their ability to extract metrics has improved since 2010


CRE professionals believe that technology tools are critical to elevating the CRE function inside their organisations. In Australia, the tools that are top of the wish list are those that assist with occupancy planning data, retail network planning and electronic document depository.

Figure 20: Elevating the CRE function – technology tools

Question: What technological tools would most enhance your performance as a CRE professional?

50% electronic document

depository

25% rental

benchmarking

21% financial modelling

33% portfolio

dashboards

19% lease

management

53% occupancy planning

data

50% retail planning

network


Figure 21: Data vs knowledge

However, a word of caution in an age of so-called big data and analytics, CRE has so much access to information that data overload is a risk. The key to success is filtering out the data that clearly has the ability to positively impact the business and drive productivity improvements. CRE professionals need to challenge current thinking about data - the temptation is to focus on the creation of an infrastructure that spits out traditional real estate metrics at the touch of a button. There is a discernible shift away from placing total emphasis on numeric indicators and instead building impact assessments, business cases or operational dashboards on a more balanced set of indicators that include more intangible issues, particularly around workplace strategy.

Accumulate Intelligence

Knowledge

InformationResultsData Format, Filter,

SortInterpret,

Validate, Act


Figure 22: CRE performance metrics hierarchy

Key Recommendations

Ensure real estate decisions are made using real time, accurate data 1 Build the connection

between real estate performance data and business performance data through a hierarchical metrics structure

2 Invest in appropriate technology platforms to transform data into knowledge3

CRE should frame their data collection and analytics around the mindset of operational, performance and critical success factors. Historically CRE has been strong at capturing and communicating operational data and metrics, to a lesser degree performance metrics and is often challenged in being able to measure the contribution of real estate to the success of the organisation’s core business via critical success factors.

Measure the contribution to the success of the Corporates core business

CRE Performance measure are grouping of the basic CRE operations that lead to the desired outcomes

Process measures of specific services and activities

A mechanism to assess the compliance of the delivered services to the original objective

A system for progress reporting

A set of service levels

Corporate Success Factors

Strategic Metrics

Strategic Metrics

CRE Performance Indicators

CRE Control Measures


Jones Lang LaSalle’s Global Corporate Real Estate Survey is a biennial global initiative. Concluded in December 2012, the survey collected a total of 636 responses across 39 countries and 536 companies with more than 1,000 employees. For the purpose of this survey, we analysed responses from 52 of the survey participants working in Australia at companies with more than 1,000 employees.

A broad range of industries are represented in our Australia sample base (Fig 23). A third of respondents belong to the banking and financial services. This is also the same for the government sector, while the remaining are spread across diverse industries. In terms of company size, more than a third are organisations with 10,000 to 50,000 employees, the rest of the sample offering a variety of other sizes (Fig 24).

About the Survey

Figure 23: Australian responses by industry sector

Figure 24: Australian responses by size of company

23%5,001-10,000

37%10,001-50,000

19%1,000-5,000

10%More than 100,000

12%50,001-100,000

Jones Lang LaSalle Australian Corporate Research Team

Tony Wyllie National Head of Integrated Portfolio Services Corporate Solutions [email protected] 61 2 9220 8729

Tony Wyllie is Head of Integrated Portfolio Services, Corporate Solutions at Jones Lang LaSalle. Tony works with real estate and facilities teams to drive real estate performance and align the property strategy to that of the business. Tony has more than 20 years experience in the corporate property services industry, delivering and implementing solutions around work place strategy, portfolio strategy, strategic sourcing, transactions and valuations and due diligence.

Anna Town Director, Strategic Sales Services, Corporate Solutions [email protected] 02 9220 8445

Anna has more than 14 years experience in marketing, communications and research in the commercial and hotel property sectors. She is responsible for setting the marketing strategy and executing strategic programmes, including thought leadership, for the Corporate Solutions business in Australia.

banking and financial services33%

government33%other6%

6%professional services

6%

manufacturing and industrial

6%technology6%

retail6%

health care

8%Energy (includes oil,

gas, petrochemi-cals, energy utilities

4%2% 2% 2%

Media,entertainment and hospitality


About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialised real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of USD 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. Its investment management business, LaSalle Investment Management, has USD 47.0 billion of real estate assets under management.

About Jones Lang LaSalle Corporate SolutionsA leader in the real estate outsourcing field, Jones Lang LaSalle’s Corporate Solutions business helps corporations improve productivity in the cost, efficiency and performance of their national, regional or global real estate portfolios by creating outsourcing partnerships to manage and execute a range of corporate real estate services. This service delivery capability helps corporations improve business performance, particularly as companies turn to the outsourcing of their real estate activity as a way to manage expenses and enhance profitability.

Acknowledgements Jones Lang LaSalle gratefully acknowledges the assistance of those CRE professionals who participated in this survey. We are also grateful to Kadence International, our research partner for this project.

We welcome any feedback on the published results to continue to improve future editions and make them as meaningful as possible for our readers. If you have any comments or would like to participate in future surveys, please email [email protected].

Visit www.jll.com/globalCREtrends to explore the global trends in more detail. See how CRE executives based in your region responded and compare your answers with the global survey results. Additional reports for specific countries and industry sectors will be posted to this site as they are released throughout the year.

www.joneslanglasalle.com.au

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