Opportunity Emerges from Crisis

Global Corporate Real Estate Survey 2011

Welcome to Jones Lang LaSalle's inaugural Global Corporate Real Estate Survey, undertaken in partnership with
Thomson Reuters. This is the first global report designed to provide insight into the future path, challenges
and opportunities facing CRE. With over 500 CRE executive respondents globally from 36 countries, this survey
has captured data not previously presented in any of our research. The survey pointed to four overarching
global trends impacting the future state for CRE teams and these are highlighted below. We hope you find
this information valuable and welcome any feedback.

Stuart Hicks
Americas

John Forrest
Asia Pacific

Vincent Lottefier
Europe, Middle East
and Africa

Vincent Lottifier

Balancing the dual force of growth and right-sizing. Podcast by Vincent Lottefier

John Forrest

Progessing towards partnerships Podcast by John Forrest

Lee Elliot

Reshaping CRE structures and skills Podcast by Lee Elliot
  • Higher demands on productivity

    CRE teams are required to be more relevant and resourceful, enabling CRE leaders to further enhance productivity and efficiency

    Having been placed in the eye of the storm during the global financial crisis (GFC), CRE teams now experience more scrutiny from internal stakeholders, increased demand for real-time reporting, and tougher performance targets. This should help CRE teams be better prepared to address returning growth, as well as the continued uncertainty in the financial sector.

    Driving improved productivity via the implementation of more strategic real estate initiatives will define best-in-class CRE organizations. A shift from short-term, survival motivated tactics towards medium-term, strategic initiatives aimed at driving productivity enhancements is both possible and required.

  • Balancing the dual forces of growth and right-sizing

    CRE organizations are exposed to complex targets, such as dealing with the contrary pressures of growth and right-sizing

    Charged by corporate leadership to deliver sizeable cost savings, CRE teams embarked on a series of short-term tactical real estate plays focused exclusively on driving direct cost savings from real estate portfolios. This forced a step change in the form, function and structure of the CRE organization’s engagement with leadership.

    A key challenge for CRE teams will be to deliver a platform that enables the business to pursue select growth opportunities, often in markets that lack transparency, while simultaneously right-sizing CRE portfolios within mature markets.

  • Progressing towards partnerships

    CRE teams are moving towards more sophisticated partnership models

    To meet the challenges of the next three years, CRE leaders will need help from outside. Evolution along the outsourcing curve will be necessary to provide capacity for CRE leaders to elevate within the organization.

    For those already engaged with the market, a re-evaluation of existing partnerships with key service providers may be undertaken to ensure value and benefits are being extracted to the satisfaction of higher levels of the organization.

  • Reshaping CRE structures and skills

    A new talent requirement is emerging, resulting from a tougher operational environment, forcing CRE leaders to rethink team structures and skills

    CRE teams were exposed during the economic uncertainty as the C-suite gained a better appreciation of real estate fundamentals and the costs associated with real estate portfolios. While this presents new, tougher challenges for CRE teams, it also creates an opportunity for greater engagement.

    CRE leaders should consider re-evaluating their existing teams and skills. They must be prepared to redesign team structures in order to reduce focus on tactical (more easily outsourced) activities. Greater attention on driving sustained relationships with business leaders will facilitate better long-term alignment between business and CRE strategies. Either by up-skilling existing staff or acquiring fresh talent CRE leaders should broaden the set of skills residing in their organizations today.

© Copyright 2011 Jones Lang LaSalle
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