Global Corporate Real Estate Trends Report 2015

ELEVATEto excellence

Note: Region % is based on location of person responding

Americas

EMEA

Asia Pacific44%

20%

36%

respondents544

countries36companiesrepresented350+

The third biennial JLL Global CRE Survey

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A variety of sectors represented

HEALTH-CARE

6%

ENERGY

9%GOVT

6%

TECHNOLOGY, MEDIA, AND TELECOMMUNICATIONS

24%

MANUFACTURING AND INDUSTRIAL

19%

BANKING AND FINANCIAL SERVICES

25%

PROFESSIONAL SERVICES

11%

OTHERS

27%

CONSUMER PRODUCTS

10%

3Note: Does not add to 100%; respondents could select more than one sector.

CRE teams are becoming increasingly centralized and global, being more formally connected to the C-suite and better empowered to drive change.

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Interaction and integration with other business functions and stakeholders is a growing need, but it is a strong feature of only a few CRE teams.

Demand to deliver across a range of tactical and strategic activity continues to intensify, challenging the composition and skills of CRE teams and creating a ‘pressure cooker’ of expectations.

CRE teams are using outsourced service providers across more geographies and industry sectors; but many are still missing the opportunity to drive strategic, long-term value through outsourcing partnerships.

Four key themes emerged from the survey

2 3 4

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CENTRALIZATION INTEGRATION EXPECTATION OUTSOURCING

v

5

THEME 1

CENTRALIZATION

6

How would you assess the strength of the CRE team’s mandate, compared to three years ago?

CRE teams feel that their mandate has strengthened

CENTRALIZATION

7

Teams expect more centralization and control over the next three years

What changes do you anticipate in the CRE team structure over the next three years?

CENTRALIZATION

8

The majority of CRE leaders continue to report directly into the C-suite

To what level of the organization does the head of CRE currently report?

CENTRALIZATION

v

9

THEME 2

INTEGRATION

10

Cross-functional integration is an aspiration, but not yet the norm

How would you describe the collaboration of CRE with other business functions, currently and three years from now?

INTEGRATION

11

Integration between CRE and procurement teams is especially strongDo you have an internal procurement function that is involved in CRE decisions?

Where does your internal procurement team who are involved in CRE sit within the organization?

INTEGRATION

v

12

THEME 3

EXPECTATION

CRE teams are experiencing intensifying demands to deliver across a range of STRATEGIC activities

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How are the demands of senior leadership on the CRE team changing in terms of alignment with the firm’s strategic priorities?

EXPECTATION

CRE teams are experiencing intensifying demands to deliver across a range of TACTICAL activities

14

How are the demands of senior leadership on the CRE team changing in terms of the tactical delivery of CRE?

EXPECTATION

CRE teams feel slightly less equipped to handle changing demands

15

How well-equipped do you feel to meet changing demands?

EXPECTATION

v

16

THEME 4

OUTSOURCING

Nearly half view outsourcing as a strategic activity

17

How strategic is CRE outsourcing to your firm?

OUTSOURCING

18

CRE teams are increasingly using outsourced service providers across a wide range of services

How would you best describe the delivery of CRE services now and in three years time? (1/2)

OUTSOURCING

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CRE teams are increasingly using outsourced service providers across a wide range of services

OUTSOURCING

How would you best describe the delivery of CRE services now and in three years time? (2/2)

v

20

IMPLICATIONS

The biggest constraints for CRE are around data and analytics and relationships with the business

21

What are the top three constraints hindering CRE from enhancing itself as a strategic value-add to your organization?

How CRE teams can elevate to excellence

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3

4

5

Respond to a growing mandate by bringing tangible, strategic value to the organization

Prioritize development of people skills ahead of technical, property-focused skill sets

Create a strong data and analytics platform to bring science to day-to-day delivery and long-term strategy

Create a strategy to address ‘business as usual’ activities without undermining the evolution to trusted advisor

Leverage vendors to extend strategic capabilities and gain exposure to industry best practices

Agree what excellence looks like for the CRE function, then chart progress and position relative to peers

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What’s next? Recognizing and adopting the “Great Traits” of CRE organizations

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Believe in active TALENT MANAGEMENT

Establish coordinated INFRASTRUCTURE MANAGEMENT Foster a culture of INNOVATION Adopt a mix of PARTNER MANAGEMENT/LEVERAGE Be CHANGE AGENTS Formalize RISK MANAGEMENT

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2

3

4

Be CENTRALIZED, EMPOWERED AND PROCESS-ORIENTED

Leverage DATA ANALYTICS AND BUSINESS INTELLIGENCE

Focus on SERVICE DELIVERY EXCELLENCE

Invest in a formal INTERNAL RELATIONSHIP MANAGEMENT FUNCTION

Provide STRATEGIC PLANNING 5

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8

9

10

11

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THANK YOU