to excellenceELEVATE

Global Corporate Real Estate Trends 2015

rank LACK OF EFFECTIVE DATA AND ANALYTICS as a TOP CONSTRAINT to elevating the CRE functions

report INCREASING DEMANDS to REDUCE OPERATING EXPENSES

report INCREASING DEMANDS to ENHANCE PRODUCTIVITY of the real estate portfolio

52%

77%75%£

£

are ACTIVELY OUTSOURCING elements of their CRE activities

have an INTERNAL PROCUREMENT FUNCTION involved in CRE decisions

view outsourcing decisions as STRATEGIC AND FOCUSED on LONG-TERM VALUE

of respondents PREDICT FULL OUTSOURCING of the following in the next three years:

Lease Administration

Transaction Management

Transaction Execution

Project and Construction Management

Facilities and Property Management

86%70%

49%

25%

£ £ £ £

have a GLOBAL HEAD OF CRE in place

of CRE heads REPORT DIRECTLY TO THE C-SUITE

rank BUILDING AND SUSTAINING STRONG RELATIONSHIPS as a TOP OPPORTUNITY to elevate the CRE function

rank LACK OF INTEGRATION WITH THE WIDER BUSINESS as a TOP CONSTRAINT to elevating the CRE function

have a FORMAL BUSINESS RELATIONSHIP MANAGEMENT PROGRAM in place

have ADOPTED A SHARED SERVICES MODEL, well behind 2013 predictions

only

expect GREATER CENTRALISATION AND CONTROL over the next 3 years

92%

57%

50%

45%

43%

12%

17%

86%

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

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.

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

As pressure grows, 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.

THEME 1 CENTRALIZATION

THEME 3 EXPECTATION

THEME 2 INTEGRATION

THEME 4 OUTSOURCING

61%

in 2013

VS

say their CRE MANDATE IS STRONGER than 3 years ago

73%

2013 2014 2015

feel WELL-EQUIPPED to meet changing demands

28%in 2013

VS

only

jll.com/GlobalCREtrendsSource: Elevate to excellence: Global Corporate Real Estate Trends 2015© Jones Lang LaSalle 2015

2015 2016 2017