Aldren Bormann

Julian Marshburn

Lisa Raffetto

Robert Rainwater

CBRE Group, Inc.Jones Lang LaSalleKimco Realty Corp.Hammerson plc

Industry Review – Ops Management

Commercial Real Estate Property Management

Safety and Governance

Safety:

The Challenge:

• Several requirements

• Properties must be properly maintained, zoned and insured in order to be leased or sold.

• Property owner’s responsibility

Safety and Governance

Safety: cont..

What’s being done?

CBRE:• 5 yrs. injury free.• Royal Society of Prevention of Accidents.• Ranks 3.7x better than the industry average, yet..• Cited for safety issues

JLL:• 2009-2010 - International Safety Award• Gold Award – Royal Society for the Prevention of Accidents.• Partners must comply with JLL’s health & safety policies.

Kimco and Hammerson:• Have not disclosed detailed information • State and Federal laws.

Safety and Governance

Industry Overall Concern:

• Radon, Mold, Asbestos, Lead, Ozone, (VOCs), and Poor ventilation.

What’s being done?

JLL: • Individual controllers • Placement of printers and copiers • Chemical-free cleaning supplies• Non-toxic wall and floor covering

Hammerson: • Natural Ventilation project in shopping centers.

CBRE & Kimco: • No strong emphasis on indoor air quality.

Indoor Air Quality:

Safety and Governance

CBRE: • Public Disclosures - Transparency • Guidelines for Ethical Behavior • Global Anti-Corruption Policy • Whistleblowing Policy

JLL: • Rigorous corporate governance laws

Kimco & Hammerson: • Corporate Governance Guidelines • Board responsible to stockholders & to meet governance targets.

Governance Highlights:

Financial Reporting

Industry Averages:

Source: morningstart.com (6/2013)

Financial Reporting

Industry Averages: cont..

Source: morningstart.com (6/2013)

Financial Reporting

Market Cap:

Source: ycharts.com (as of 6/14/13)

A comparison of the value attributed by the stock market to a given company’s stock. Market capitalization is important because it places a company in terms of its size tier in relation to peers.

Financial Reporting

Global Reporting Initiative (GRI) :

JLL CBRE Kimco Realty Hammerson plc

- Not filed GRI report. - Published a CSR in 2011.

- Deemed the “World’s Most Ethical Company”, 6 years in a row.

- Not filed GRI report. - Standards Disclosure Index as part of their CRRs for the last 3 years.

- Filed CRRs following the principles of the GRI (G3) - self-declared a B rating.

- Not filed GRI report. - First GRI planned for 2014.

- Currently reports via the Carbon Disclosure Project and Global Real Estate Sustainability Benchmark.

- Has filed GRI reports in 2003, 2004, and 2009 through 2012.

- Committed to 12 key long-term measures including a reduction in carbon emissions, and increased long-term investment in communities.

Sustainability

Sustainability: CBRE Group

LEED/Green Building

Social/Employee Community

CBRE

- Became the first company in CRE industry to achieve carbon neutrality in 2010.

- Newsweek ranked the CBRE Group as the Greenest Real Estate Firm in 2011.

- Strong commitment to empowering women, LGBT community, African-American, Hispanic Networks, and Veterans.

- Over 98% of employees completed their annual ethics certification, for the last 4 years.

- $6.7 million donated to 583 organizations in 2012.

Sustainability

Sustainability: JLL

LEED/Green Building

Social/Employee Community

JLL

- 1,250 LEED accredited professionals.

- Energy and sustainability team designs eco-friendly workplaces.

- Helped owners obtain LEED certifications via LEED gap assessments and scorecard.

- 200 buildings and commercial interiors have achieved green building certification.

- Helped clients save $128 million in energy costs and 563,000 metric tons of GHG emissions in 2010.

- “Step Up for Kids” -program raised nearly $450,000 for the Children’s Memorial Hospital.

Sustainability

Sustainability: Kimco Realty

LEED/Green

Building

Social/Employee Community

Kimco

- Financed, developed, and harvested 3 million watts of rooftop solar power on 6 shopping centers in NJ in 2010.

- Started Tenant Energy Services program reducing operating costs from energy and water consumption.

- Company-sponsored 12-week health programs with Weight Watchers.

- Offers competitive employee benefit packages.

- Business Boot Camps, a 3-day program that acts as a micro business incubator.

- Support includes business planning, financing, and market research to site selection, permitting, hiring, and marketing.

Sustainability

Sustainability: Hammerson

LEED/Green Building

Social/Employee Community

Hammerson

- Uses BREEAM (Building Research Establishment Environmental Assessment Method) since 1990.

- Green Leases now include mandatory BREEAM clauses for all new developments.

- 71% of employees completed Corporate Responsibility training in 2012. 2015 goal: 100% of employees trained.

- Introduced a leadership program to promote cooperation between teams, departments and shopping centers.

- Raised over 1 Million Euros in total community investment in 2012.

- Helped create 950 new companies to generate jobs and boost local economies.

Future of Industry

Concerns & Threats:

• Downturns in the local or national economy.

• Changing neighborhood demographics.

• Amount of inventory of another sector of commercial

real estate in the market. (Supply & Demand)

• Air quality, Environmental, and Property Safety.

• Economy.

Future of CRE Industry:

Future of Industry

Technology Factors• Technology influencing the CRE industry.• Adopt technology innovations to spur growth and maintain

competitive edge

Industrial/Office Sector• New construction, Class B buildings being upgraded.• Longer sustained growth in this sector.

Retail Sector• Demand is high.• Absorption of existing properties, investment going into

upgrades and renovation.

Future of CRE Industry: cont..

Conclusion

Hypothesis: Technology and social media are enhancing the industry but will never take the place of brick and mortar

offices.

Conclusion:

Future of companies in this sector directly tied to changes in global economic conditions.

Sharp differences in operations style including business transparency, financials, sustainability efforts and financials

across all 4 companies reviewed.

Thank you!

Works Cited

"Annual Report 2012." CBRE. N.p., n.d. Web. 8 July 2013. http://annualreport.cbre.com/CBRE_AR12.pdf#page= 11&zoom=125,0,279

"Commercial Real Estate Outlook: Top Ten Issues in 2013." Deloitte. N.p., n.d. Web. 15 June 2013.

"Commercial Real Estate Fundamentals Improving, Lending Tight for Small Business | Realtor.org." Realtor.org. N.p., n.d. Web. 09 July 2013.

"Corporate Governance." Definition. N.p., n.d. Web. 08 July 2013. http://www.investopedia.com/terms/c/corporategovernance.asp

"Corporate Responsibility Report - 2012." CBRE. N.p., n.d. Web. 8 July 2013. http://marketing.cbre.com/CorpComm/CR_Report/2012/2012_Corporate_Responsibility_Report_FINAL.pdf.

“Duo of Health and Safety Awards for Jones Lang LaSalle.” Jones Lang LaSalle, Jones Lang LaSalle, 2013. Accessed June 11, 2013.

"Hammerson." Home. N.p., n.d. Web. 15 June 2013."Prime Office Occupancy Costs."

CBRE Corporate Commercial Real Estate Services, Worldwide. N.p., n.d. Web. 08 July 2013. http://www.cbre.com/EN/Pages/Home.aspx

“Global Health and Safety Policy and Management Standards.” Jones Lang LaSalle, Jones Lang LaSalle, 2008. Accessed June 11, 2013.

Works Cited:

Works Cited

“Green Building Features Support Worker Wellbeing and Productivity.” Jones Lang LaSalle, Jones Lang LaSalle, 2013. Accessed June 9, 2013.

“The Growth of Online Commercial Real Estate Sales”. wwwmetrics. http://www.wwwmetrics.com/commercial-real-estate.htm

Guevara, Leslie. “JLL's Staff of Certified Sustainability Pros Grows to Nearly 1,100.” GreenBiz.com. January 5, 2012. GreenBizGroup, 2013. Web. June 15, 2013.

“Hammerson.” Corporate Responsibility Report: Positive Places. London: Hammerson, 2012

Indoor air quality, http://www.ap.joneslanglasalle.com

"Kimco Business Boot Camps." Kimco Realty. N.p., n.d. Web. 14 June 2013.<http://www.kimcorealty.com/corporateresponsibility/kimcobusinessbootcamps.aspx>.

"Kimco Realty Corporation Corporate Governance Guidelines." Kimco Realty. N.p., n.d.Web. 14 June2013.<http://investors.kimcorealty.com/Cache/1001174082.PDF?Y=&O=PDF&D=&FID=1001174082&T=&IID=102965>.

"Kimco Realty Launches Corporate Responsibility Site." The Wall Street Journal. TheWall treet Journal, 31 Jan. 2013. Web. 14 June2013.<http://online.wsj.coarticle/PR-CO-20130131910027.html?mod=crnews#http://online.wsj.com/article/PR-CO-20130131-910027.html?mod=crnews>.

Newsweek. "Green Rankings 2012: U.S. Companies." The Daily Beast. Newsweek/Daily Beast, 22 Oct. 2012. Web. 08 July 2013. http://www.thedailybeast.com/newsweek/2012/10/22/newsweek-green-rankings-2012-u-s-500-list.html

Real Estate Industry Analysis 2013 – Cost & Trends

Works Cited: