CRE in India has started to transform. Increased exposure to the C-suite, more integrated collaboration with other functions and a strategic outsourcing mindset indicate that the function is maturing and preparing to play a more significant role in corporate agendas. However, the CRE platform is missing a few key elements, without which the performance of CRE teams may be compromised. Limited availability of trained CRE professionals, a lack of real estate experience from procurement teams in selecting the right strategic partners, limited analytical tools and the underinvestment in workplace transformation projects are some of the constraints that put the CRE function at risk of underperforming. ‘On the Verge of Transformation’ identifies three key trends for CRE in India.

1. “GEARING UP
FOR PORTFOLIO
GROWTH IN INDIA
AND OVERSEAS”
Productivity
“C-SUITE EXPECTATIONS
INCREASING IN NUMBER AND
COMPLEXITY”
ILL EQUIPPED
3%
Workplace
People
Asset
38%
BRAZIL
31%
RUSSIA
20%
INDIA
GLOBAL
REAL ESTATE
MARKET
TRANSPARENCY
33%
19%
ECONOMIC
TRANSPARENCY
69%
19%
17%
LACK OF UNIFIED
REAL ESTATE
STANDARDS
17%
7%
POLITICAL
TRANSPARENCY
14%
18%
Company expectations of productivity outcomes from CRE
WELL EQUIPPED TO
MEET ALL DEMANDS
28%
Few CRE leaders’ ability to meet demands of senior leadership
22%
44%
INDIA
Global CRE expectation of portfolio expansion – BRIC countries by net portfolio growth
89% 75% 75% 61%
CAN MEET
MOST DEMANDS
BUSINESS ACUMEN/
UNDERSTANDING OF
BROADER BUSINESS
Business
CHINA
EFFICIENT
STAKEHOLDER
MANAGEMENT
17%
FOCUS ON
INNOVATION
Extent of workplace transformation which
will increase over the next three years
FORWARD
THINKING
19%
Challenges while expanding into developing/emerging markets
17%
Skills required to meet increased expectations
Source: On the Verge of Transformation: Global
Corporate Real Estate Survey 2013, Jones Lang LaSalle
© Jones Lang LaSalle 2013
India Corporate
Real Estate Trends 2013
The Corporate Real Estate (CRE) function in India has started
to transform. Increased exposure to the C-suite, more integrated
collaboration with other functions and a strategic outsourcing mindset
indicate that the function is maturing and preparing to play a more
significant role in corporate
agendas.
Jones Lang LaSalle’s India
report, On the verge of
transformation, provides
powerful insights into the
current state and future direction of
CRE in India. Explore the findings
and trends that are shaping up
CRE function at:
www.joneslanglasalle.co.in/
indiaCREtrends

2. “CRE A POTENTIAL LEADER
FOR ORGANISATIONAL
TRANSFORMATION”
Percentage of Indian
firms, in which
CRE heads reside
in dedicated CRE
departments
INDIA
47%
GLOBAL
39%
“OUTSOURCING
NOW A MORE
COMMON
SOLUTION TO
CORPORATE INDIA”
INDIA
ASIA
53%
IT
47%
HR
57%
GLOBAL
37%
30%
OCCUPANCY
PLANNING DATA
More complex services are now
being outsourced in India
38%
EMERGING
MARKETS
FINANCE
CRE to FTE ratio breakdown in India-based companies
48%
29%
47%
26%
Project Management/
built-out/design
Portfolio and
Facilities Management
Transaction
Services
Lease
Administration
36%
Today
47%
38%
34%
29%
8%
19%
39%
17%
“LACK OF SUPPORT
IN WORKPLACE
TRANSFORMATION
PUTTING CRE
REPUTATION AT RISK”
INDIA
44%
GLOBAL
22%
22%
LACK OF INVESTMENT CAPITAL
22%
On an average organisations have
one corporate real estate staff per
Indian firms showing more
strategic attitude towards
outsourcing
14%
“EXTRACTING VALUE FROM
DATA IS THE KEY”
Consider lack of effective
data as the biggest constraint
in progress of CRE
“TALENT CAPS CREATING
THE GROWTH GAPS”
39%
Extent of Integration between CRE
and other support functions
3%
* FTE – Full Time Employee
Three years from now
58%
<1:100 1:101 – 1:200 1:201 – 1:500 1:500 – 1:1000 1:1001-1:5000 >1:5000
Three years from now
28%
DEDICATED CRE
DEPARTMENTS
INDIA
4563 employees
GLOBAL
4000 employees
25%
PORTFOLIO
DASHBOARDS
14%
Technological tools expected to enhance performance of CRE professionals
21%
Percentage of fully outsourced activities by service line today
FINANCIAL
MODELLING
75%
7%
COMPLEXITY ARISING FROM
CULTURAL DIVERSITY
3%
PURCHASE AND
POPULATION OF
DATABASE SYSTEMS
Sources being used for extracting real estate metrics
14%
14%
EMPLOYEE RESISTANCE
Most limiting factors in arriving
at workplace transformation
“PROCUREMENT
IN INDIA: MORE
INVOLVED BUT LESS
INFORMED”
FULLY
INVOLVED
57%
AD HOC
INVOLVEMENT NOT INVOLVED
14%
20%
Percentage of involvement of
procurement teams in India
LIMITED
60%
SATISFACTORY
14%
Extent of knowledge about the CRE function