On the Verge of Transformation: India corporate real Estate trends 2013

On the Verge of Transformation
India Corporate Real Estate Trends 2013

2 India Corporate Real Estate Trends 2013
In addition, companies in India encounter
numerous challenges, such as a complex
culture and lack of transparency, when
building their CRE platforms. How to
overcome both internal and external
obstacles and how to be better prepared
to respond to the escalating strategic
demands will be the questions critical for
CRE leaders operating in India to address
over the next few years.
We sincerely thank those of you who
shared your thoughts and perspectives.
Your input has proved invaluable in drawing
a clear picture of today’s opportunities
and limitations for the CRE function in
India. These survey findings reinforce our
conviction that CRE in India is on the verge
of transforming into a more empowered and
strategic function.
Introduction
We are delighted to introduce the first India
edition of Jones Lang LaSalle’s biennial
Global Corporate Real Estate Trends
report, which provides powerful insights
into the current state and future direction
of corporate real estate (CRE). This report
analyses the responses received from India
against those received from Asia, as well as
our global responses.
Real estate is booming in India. Both Indian
and Western companies are seeking to
capitalise on economic growth, and we
now see them optimally managing their
real estate portfolios to contain costs and
enhance workplace productivity. CRE
leaders in India are demonstrating a more
strategic mindset and have started to
invest in transforming the CRE function
to align better with business needs in a
fast-changing environment. This, in turn, is
increasing the complexity of the demands
on CRE leaders.
Yash Kapila
Managing Director, Corporate
Solutions and Head of Integrated Facilities
Management, India
yash.kapila@ap.jll.com

Jones Lang LaSalle 3
Executive Summary
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.
With increasing pressures and demands
from senior leadership—on both tactical
and strategic levels—CRE teams will need
to reconfigure their structure, resources
and aptitude toward more strategic
practices. Fostering workplace productivity
is paramount in proving the strategic value
of the CRE function. With a multifaceted
scope that includes employees, workplace,
business and real estate asset productivity,
workplace transformation is arguably the
most crucial part of the CRE agenda.
Yet, without a strong operational platform,
there is a risk that CRE teams may
underperform and reduce the value add
that they can contribute to the broader
business. Western companies operating
in India that represent the bulk of our
survey respondents are slightly ahead
of the game. At the same time, domestic
Indian companies realise that they need
to transform their CRE function if it is
to support corporate competitiveness.
The task will not be made easier by the
remarkable portfolio growth expected in
India and in other growth markets that are
often not the most transparent.
• The shortage of CRE talent and
a lack of dedicated educational
programs hinder CRE upskilling and
development.
• A lack of effective data and analytics
capabilities deprives CRE from
accurate and up-to-date real estate
portfolio information.
• Insufficient investment capital is an
obstacle to successful workplace
transformation projects.
• Complexity arising from cultural
diversity is one of the most limiting
factors in driving workplace
transformation.
• When unfamiliar with purchasing
CRE services, decision makers risk
missing out on the value of external
partnerships.
• CRE teams do not feel fully equipped
to meet the increasing demands from
the C-suite. Faced with enhanced
expectations, CRE teams risk
underdelivering.
• Expected CRE attributes, such
as an understanding of broader
business, innovation and
stakeholder management outside
CRE, necessitate more elaborate
operational structures.
• In India, more than in most countries,
enhancing workplace productivity is
a strategic priority and calls for more
commitment from CRE teams.
• Rapid real estate portfolio growth
requires CRE teams to be ready to
respond to business expansion.
Three key trends identified for CRE in India
• Direct reporting lines to the C-suite
promote a closer alignment with
business strategy.
• Working with other corporate functions
starts to be more collaborative.
• India’s business process outsourcing
(BPO) culture nurtures the readiness
to adopt outsourcing models and
solutions.
Strategic mindset is
paving the way for CRE
transformation in India1
Internal limitations and
constraints are holding
back faster progress2
Upgraded CRE function
needed to meet increasing
strategic demands3

1 Strategic mindset is paving the way
for CRE transformation in India
India is one of the countries where the CRE function has started to evolve and mature,
suggesting a faster transformation when compared with global responses to our survey.
Although most surveyed companies are Western corporations operating in India and
appear to have taken the lead in this transformation, Indian companies have inherent
elements that will enable them to move rapidly. With one of the best track records in the
BPO industry, hosting multinationals from a large array of countries and sectors, and
with a burgeoning real estate market, India provides a favourable environment for the
development of a strategic mindset by CRE leaders.

In 47%
of companies in India,
the global head of CRE
resides in a dedicated CRE
department, versus
39% globally
91%
of CRE heads in India
report to the C-suite versus
the global average of 58%
72%
of respondents in India expect
CRE strategy to be entirely
aligned with the broader business
strategy in three years’ time,
in line with the global average
(72%), but well ahead of their
Asian peers (55%)
In line with the global trend,
finance is currently the function
most integrated with CRE in India,
Shared services type of
collaboration between CRE and HR
is currently lagging. This is
expected to increase by
47%
of respondents in India report
a shared services type of
integration between CRE and IT
functions, ahead of the global
and Asia averages (31% and
30%, respectively)
57%
of respondents in India say
their outsourcing preferences
lean toward strategic
relationships based on value,
well ahead of the global
response of only 30%
40%
in the next three years—a huge leap,
although not as dramatic as globally
(67%) and in Asia (71%)
with 53%
of respondents reporting
a shared services type of
integration, versus
38% in Asia

An overwhelming majority (91%) of CRE heads in India report to the C-suite1
, with the
remaining 9% reporting to the managerial level (Fig. 1). This reporting line is significantly
more elevated than in many countries across Asia and the world, in which reporting
structures are more likely to be related to managerial and executive levels. To some extent,
this can be explained by the fact that a number of India-based CRE executives have a
double reporting line to both local C-suite and global CRE department.
Figure 1: Global CRE heads’ reporting lines
Question: To what level of the
organisation does the global head of CRE
currently report?
Note: Totals may not equal to 100% due to the
exclusion of ‘Other’ responses.
Hard-line reporting to
the C-suite strengthens
CRE’s strategic
alignment
Proximity to C-suite executives provides the CRE function more visibility to business
drivers and challenges, enhances communication and facilitates a better understanding of
corporate directions and goals. Currently, over half of India-based respondents report that
CRE strategy is entirely aligned with the broader business strategy (Fig. 2). This score is
the highest in Asia, and it is expected to grow even further to reach 72% in three years’
time.
Figure 2: Alignment of CRE strategy with broader business strategies
Question: To what extent is your CRE
strategy aligned to your company’s broader
business strategies/corporate goals, today and in
three years’ time?
Executive levelManagerial levelC-suite Operational level
9%
91%
India
59%
23%
13%
3%
Asia
58%
26%
14%
Global
Moderately aligned
Minimally aligned
Not aligned
Entirely aligned
Not aware of
corporate goals
36%
19%
58%
72%
0%
3%
3%
3%
3%
3%
In three years’ timeToday
1
The C-suite is primarily represented by the Chief
Executive Officer (CEO), the Chief Operating Officer
(COO) or the Chief Financial Officer (CFO) throughout
this report.

Question: Within what department does
the global head of CRE reside?
With some exception, having a dedicated CRE department is commonly considered a sign
of maturity for the CRE function in developed markets. Today in India, almost half of those
surveyed have created a dedicated department to cater to their CRE needs (Fig. 3). This is
closer to the findings in developed countries than those in emerging markets. This can be
explained by the large proportion of multinationals in the survey that tend to replicate global
CRE structures within their India operations.
Figure 3: Global CRE head’s department
While gaining more
autonomy and
recognition, CRE needs
to proactively work with
other functions to lead
collaborative efforts
11% Finance 47% Dedicated
CRE department
Supply chain
and logistics
3%
Administration/
Shared services
8%
Corporate office/
General management
22%
6% Other
No global head
of CRE
3%
Another area where CRE in India is quickly changing is the best practice of cross-functional
collaboration (Fig. 4). Here, collaboration has to be understood in a broad sense, ranging
from reactive ad hoc, project-based teamwork, to more proactive and integrated practices.
Closer relationships with the C-suite, as illustrated by reporting lines, is an important factor
facilitating cross-functional partnerships.
• Among all countries, it is in India that IT is most integrated with CRE, with 47% of
respondents already having a shared services type of integration, and another 25%
collaborating on an ad hoc basis. Being one step ahead, there is less pressure to
integrate further. Therefore, there will be slower progress in this regard in India as
compared to most countries around the world.
• Currently the most integrated function globally, finance has been at the forefront of
collaboration with CRE in India as well. The majority (53%) of CRE executives in India
report shared services type of integration with finance, and 10% expect this to increase
three years from now.
• HR is the least integrated with CRE among the three functions analysed in the survey.
Yet, it is expected to demonstrate the biggest leap (a 40% increase) toward shared
services type of integration in three years’ time, still somewhat slower than the global and
regional trends.

The development of shared services models over the medium term presents CRE leaders
with a unique opportunity to lead change. Rather than resisting a perceived loss of influence
or specialisation, CRE leaders should embrace the next generation of collaboration
structures as the vehicles for transforming their organisations. We believe CRE teams have
the ability to take a strong leadership role in these new configurations in order to establish
creative and productive workplaces. In adopting a position as a company-wide workplace
change agent rather than a tactical specialist, CRE will extend its relevance and mitigate any
risks of becoming marginalised.
Question: How would you describe the
collaboration of CRE with the IT, finance and HR
functions respectively today and in three years’
time?
Note: Totals may not equal 100% due to
rounding.
Figure 4: Collaboration of CRE with other support functions
In three years’ timeToday
47%
31%
25%
47%
0%
19%
25%
3%
3%
IT
Shared services integration
Ad hoc/project basis
Only between functional heads
None/hardly any interactions
58%
53%
22%
28%
17%
17%
3%
3%
Finance
10%
39%
39%
39%
28%
28%
19%
3%
6%
HR
40%

Question: Please rate your current
attitude toward outsourcing on a scale of 1–5
where 1 means outsourcing represents a tactical
transaction, mainly with the lowest cost supplier,
and 5 means outsourcing represents a strategic
relationship.
rounding.
BPO has permeated India’s business culture and is influencing the way companies operate
their CRE in the country. In addition to being a key segment of the economy, outsourcing
is becoming a more common solution in corporate India, as today’s management practices
emphasise the need to focus on core competences. Consequently, outsourcing the delivery
of CRE services to external partners has become an accepted—or, at the very least, an
acceptable—option.
Survey respondents in India are showing the most strategic attitude toward outsourcing
among all regions. The majority (57%) of respondents identify their outsourcing intention as
a strategic relationship based on value; very few (3%) see it as a tactical transaction based
on cost (Fig. 5). Our interpretation of these answers must take into account the fact that
our sample base is not averse to outsourcing (those we surveyed are either our clients or
companies we are in discussion with). Nonetheless, survey responses reflect a willingness of
companies in India to outsource part or all of their CRE services, even though this potential is
not always realised when it comes to actual implementation. This shows a clear trend: CRE
outsourcing rapidly becoming a wider-spread practice across more companies and sectors.
With this level of maturity, India can be trusted to be one of the first among emerging markets
to create new outsourcing models and solutions.
Figure 5: Current attitudes toward outsourcing
India’s BPO culture
helps to promote
outsourced CRE
solutions
3%3% 26% 11%
Outsourcing
represents a tactical
transaction, mainly
with the lowest cost
supplier
Outsourcing
represents a strategic
relationship, where
I assess longer-term
value add with
a partner
57%
India
Asia
8%8%
9% 21% 33%
Outsourcing
relationship, where
value add with
a partner
30%
Global
Outsourcing
transaction, mainly
supplier
6%
18% 29%
Outsourcing
relationship, where
value add with
a partner
38%
Outsourcing
transaction, mainly
supplier

Overall, outsourcing behaviour in India is advanced compared with other countries. More
complex services are now being outsourced in India (Fig. 6), reflecting the strategic mindset
of CRE leaders and the existing in-house capability challenges.
• Requiring temporary resources, project management, design and build-out are
currently the most easily outsourced services, with almost half of companies fully
outsourcing them to external partners, and only 6% keeping them fully in-house. The
delivery of these services is expected to shift to a mixed outsourcing model in the next
three years.
• Property management as well as portfolio and facilities management are the next
most outsourced CRE services in India. Around a third fully outsource these services, the
rest opting for a hybrid service delivery combining in-house and outsourced solutions.
• Transaction services are less outsourced in India. Corporate leaders prefer to have
control by keeping them in-house, relying more on established relationships with
developers. However, as a larger number of Indian companies expand into less familiar
markets (where they don’t have connections), they will be more prone to entrust these
functions to service partners. Transaction services outsourcing is expected to pick up in
India, with just above a third of respondents anticipating to fully outsource transaction
services in three years’ time.

Figure 6: Outsourcing activity by service line, today and three years from now
Question: How would you best describe the current delivery of the following CRE services, where 5 stands for fully outsourced and 1 for fully in-
house?
Note: Totals may not equal 100% due to rounding.
Project management/build-out/design
6% 21% 48%18%
0%
18%12% 30% 18%22%
14%11% 26% 22%28%
6% 18% 36%39%
Portfolio and facilities management
6%9% 26% 29%29%
14%21% 22% 22%21%
17%25% 25% 13%19%
Transaction services
9%17% 26% 26%23%
11%11% 11% 34%31%
15%22% 27% 15%21%
14%18% 22% 23 %23%
Portfolio strategy
19%44%
52%
32%
42%
22%
12% 32% 9%
12% 21% 12%
20% 5%11%
15% 3%8%
15%
12%
Property management
6%6%
16%6%
12%26% 20% 23%19%
15%34% 18% 18%16%
12% 41%35%
19% 34%25%
9%
Energy and sustainability services
17%
10%
28%
18% 30%27%
13% 29% 18%23%
26%19% 23%
19% 24% 11%17%
15%9%
Lease administration
11%31% 12% 28%19%
12%42% 14% 19%13%
26% 15% 29%24%
9%33% 24% 21%12%
6%
23%
6%
6%3% 15% 38%38%
India in three years' time
Global in three years' time
Global today
India today
Fully
outsourced
43Fully-
in-house
2

2
On average, there is a ratio of
oneCRE employee
to 4,563
full-time employees in
companies in India, as
compared to 1:4,000 globally
In line with global responses,
75%
of companies in India that
have improved their ability to
extract real estate metrics did
so through data collection by
the CRE team
of respondents indicate
that procurement teams are
involved in CRE affairs on a
permanent basis; this is more
than globally or in Asia (36%
and 40%, respectively)
57%
44%
in India consider the lack of
effective data and analytics to
be the most important constraint
hindering CRE from enhancing
itself as a strategic value add;
this is more than the rest of
the world (34% globally,
40% in Asia)
in India have improved their
ability to extract real estate
metrics due to purchase
and population of database
systems; this is significantly
lower than global (32%)
and Asia (23%) responses
Only 3%
Internal limitations and constraints are
holding back faster progress
While the CRE function in India is quite advanced in terms of thinking and approach,
implementation is still trailing. Talent and technology caps are preventing CRE from reaching
its full potential. Companies in India are missing out when it comes to developing internal
knowledge and skills, and many lack adequate real estate analytical tools and systems to draw
insights about portfolio efficiency and forecast performance. Furthermore, there is a lack of
support, in terms of investment capital as well as top-down sponsorship, to deploy much needed
workplace transformation programs. In addition, when the procurement teams involved in CRE
decision making are not CRE savvy, their contribution can end up being counterproductive.

Talent caps On average, our survey shows a ratio of one CRE employee per 4,563 full-time employees
in companies in India (Fig. 7). This ratio indicates smaller in-house CRE teams in India than
in most developed countries. In Australia, for example, the ratio is one CRE employee per
1,100 full-time employees (FTE). This can either indicate that the CRE function in India is
more outsourced, or that CRE teams are understaffed.
The professionalisation of CRE is just starting to gain momentum. Companies in India
suffer from a shortage of trained CRE professionals, mainly because of the lack of formal
education in the real estate sector. In fact, there is no well-established community of real
estate academics in India. Apart from short-term courses offered by industry bodies such as
the Royal Institute of Chartered Surveyors (RICS) and a ‘Master of Corporate Real Estate’
(MCR) degree recently launched by CoreNet Global, no full-time program is preparing
students to assume CRE leadership positions.
Most real estate programs are likely to deal with infrastructure and construction, but often
miss CRE subjects such as leasing or portfolio management. When self-taught or being
trained on the job, CRE executives often gain top-notch capabilities, but run the risk of being
stuck in a tactical professional stage, not realising that they, or their teams, need upskilling to
progress. Working with global external partners who bring in best practices from around the
globe is one way to unlock their careers and move on to the next, more strategic dimension
of CRE.
Figure 7: CRE to FTE ratio breakdown in India-based companies
Question: What is the size (number
of full-time equivalent employees) of your
CRE team globally? Approximately how many
employees does your organisation have
globally?
3% < 1:100
8% 1:101-1:200
1:201-1:50019%
1:1,001-1:500014%
39% 1:501-1:1,000
17%> 1:5,000

Even though collecting data may not be a serious issue, extracting value out of this data
and automating the process represent a challenge (Fig. 9). CRE teams in India rely more on
manual data collection rather than on systems and technology.
When asked what has driven the improvement in extracting real estate metrics, very few
respondents in India mentioned ‘commitment to spend on data collection and systems’ and
only one respondent indicated ‘purchase and population of database system’ (Fig. 10). In
contrast, a total 70% of respondents globally attributed the improvement in extracting real
estate metrics to investment in and implementation of data analytics systems.
Figure 9: Ability to extract real estate metrics at facility and portfolio levels
Question: How would you rate your
current ability to extract real estate metrics
(e.g., space held, costs, vacancy) on demand?
rounding.
Information is power CRE in India is challenged with inefficiency in providing detailed, accurate and timely real
estate data. This undermines CRE’s strategic promise, as no reliable analysis can be
conducted if real estate cannot be properly measured, valued and forecast. Respondents in
India rank the lack of effective data and analytics as the first constraint hindering CRE from
demonstrating its business value (Fig. 8). This is unique compared with other countries,
where financial constraints are seen as the most important.
Figure 8: Constraints hindering CRE teams from demonstrating the value they
contribute to the business
Question: In your opinion, what are the
top two constraints that are hindering CRE from
enhancing itself as a strategic value add to your
organisation?
Note: ‘Others’ include comments about
organisational culture and management and
quality of manpower.
Portfolio level Facility level
39%
31%
44%
56%
We have everything
we need
Adequate capability
17%
11%
Limited capability
0%
3%
No capability
India Global
Lack of effective data and
analytics to measure value
Financial constraints
Lack of sustained/ consistent
C-suite commitment
44%
34%
42%
48%
31%
32%
Fragmented or
decentralised team
22%
27%
Internal skill sets/
knowledge
14%
26%
Lack of technology
11%
8%
Poor vendor
relationships
8%
6%
Others
28%
19%

Figure 10: Improvement in ability to extract real estate metrics, and drivers of
this improvement
Question: Has your ability to extract real
estate metrics improved since 2010? What do
you think has driven this improvement?
Note: Respondents were able to select multiple
responses for the second part of the question.
Question: What technological tools would
most enhance your performance as a CRE
professional? Please rank the top three tools,
where 1 is the tool that most enhances your
performance.
Building analytical tools and systems can fill the gap and make data analytics possible.
According to India respondents, occupancy planning and financial modelling tools are the
technological apparatus most expected to enhance the performance of CRE teams
(Fig. 11). However, building or acquiring these tools requires investment that is not always
readily available—financial constraints rank as the second most limiting factor in CRE
evolution (refer back to Fig. 8).
Figure 11: Technological tools enhancing performance of CRE professionals
Occupancy planning data
Financial modelling
Portfolio dashboards
Rental benchmarking
Lease management
Retail network planning
Electronic document
repository
17%47% 19%
19%25% 11%
25%14% 17%
14%8% 14%
11%3% 25%
3%3%3%
11%11%
Rank 1 Rank 2 Rank 3
11% No
89% Yes
Data collection by the CRE team
Commitment to spend on data
collection and systems
Outsourcing of lease administration
to service provider
75%
25%
22%
Purchase and population of a
database system
3%
Others 9%

Lack of support
for workplace
transformation
projects is putting
CRE reputation and
positioning at risk
Workplace transformation projects offer CRE a unique opportunity to demonstrate the value
that the function can contribute to the business. However, a lack of support often represents
an obstacle to the successful completion of these complex projects.
A lack of investment capital is consistently appearing as the most limiting factor in driving
workplace transformation across the globe. Yet, this is not the only critical factor for driving
workplace transformation in India (Fig. 12). Unlike in any other country, complexity arising
from cultural diversity is just as important in the Indian context. An identical proportion (22%)
of respondents in India stresses the need for investment capital and points out cultural
diversity as a limiting factor in workplace transformation.
This ranking derives from the inherent cultural diversity in the country, including an
astounding variety of religions, languages and cultures. Accommodating diversity in the
workplace is challenging, especially while at the same time companies need to create
productive and coherent spaces.
Figure 12: Most limiting factors in driving workplace transformation
Question: : In your organisation, what
is the single most limiting factor in driving
workplace transformation?
Note: Totals may not equal 100% due to the
inclusion of the most limiting factors only.
India Global
Lack of investment capital
22%
22%
Complexity arising
from cultural diversity
22%
7%
Employee resistance 14%
14%
Lack of continuing
C-suite sponsorship 7%
8%
Lack of management
engagement
8%
10%
Difficulty to build a
compelling business case
6%
5%
Diffiiculty to change
management styles
6%
15%
Others 6%
6%
None
8%
4%

Involved on a
permanent basis
Involved on an
ad hoc basis
No internal
procurement team
Procurement is
not involved
Use external
procurement
consultants
Other
India
57%
14%
20%
0%0%
9%
Global
36%
33%
23%
3% 3% 2%
40%
25%25%
4% 2% 3%
Asia
High involvement of
procurement
The role of procurement in CRE buying decisions in India cannot be underestimated. Over
half (57%) of respondents in India indicate that procurement teams are involved on a
permanent basis, and 14% mention that procurement is involved on an ad hoc basis (Fig.
13). This engagement is much more active when compared to global responses, in which
permanent involvement is only at 36%. One of the explanations for the remarkable level of
involvement of procurement in India is the need to ensure more transparency and better
governance in corporate processes. In 2011, India ratified the United Nations Convention
Against Corruption (UNCAC) and, in 2012, the country introduced the Public Procurement
Bill. In the wake of these legislative changes, corporations in India have put a special effort
into developing policies and procurement guidelines.
Figure 13: Procurement teams’ involvement in CRE worldwide
Question: Is your internal procurement
team actively involved in CRE?
rounding.
There is a lot that CRE teams can gain from procurement support in terms of transparency,
supplier selection and vendor management. However, the active involvement of procurement
may not always be beneficial for CRE. Respondents in India believe that among the
procurement teams involved in CRE, 60% have limited knowledge about what it takes
to secure quality real estate services (Fig. 14). Unchecked and ad hoc involvement of
procurement teams may not yield the desired result when it comes to CRE services
outsourcing.
Figure 14: Degree of involvement of procurement teams in CRE in India
Question: How knowledgeable is your
internal procurement team about CRE? (Those
who responded that procurement is involved on
a permanent or ad hoc basis.)
Knowledgeable
about CRE
40%
Limited knowledge
of CRE
60%

3
78%
indicate that demands to enhance
the productivity of the real estate
portfolio are increasing; again, this
is more than globally and in Asia
(68% and 70%, respectively)
33%
perceive real estate market
transparency as the greatest
challenge in emerging markets;
this is considerably more than
the global data and in Asia
Upgraded CRE function needed to meet
increasing strategic demands
The perceived internal limitations and constraints make CRE teams in India less
confident of being equipped to deliver all that is expected from them. At the same
time, CRE teams in India are aware that the senior leadership demands placed on
them will only keep increasing in both tactical and strategic terms. Expectations to
improve productivity, a factor that ranks higher in India than the global average, are
moving beyond the workplace to include people, business and asset productivity.
Portfolios are expanding in India and beyond borders, often in growth markets that
lack transparency.
In line with the low
global response,
only 28%
of respondents in India believe
that they are well equipped to
address all the demands of senior
leadership; only 16% feel well
equipped in Asia
In line with the low
global response,
only 28%
of respondents in India believe
that they are well equipped to
address all the demands of senior
leadership; only 16% feel well
equipped in Asia
92%
report more demands to increase
the utilisation of existing buildings
in the portfolio; this is significantly
more than globally and in Asia
80%of respondents anticipate
workplace quality to
increase in the next three
years, slightly higher than
globally (73%)
42%
71%
of CRE executives worldwide
expect to expand their real estate
portfolios in India, and 4%
expect to reduce it;
89%
of organisations in India have
high expectations about CRE
improving workplace productivity,
this is more than the global
average (72%)
of India-based respondents
expect to further increase
their portfolio in India, and 8%
expect to decrease it

Constraints and limitations described in the previous pages have a significant impact on
CRE teams’ performance and result in a low proportion (28%) of CRE executives feeling well
equipped to meet all demands being placed upon them (Fig. 15).
Figure 15: CRE leaders’ ability to meet demands of senior leadership
Faced with enhanced
expectations, CRE
teams in India run the
risk of underperforming
Question: How are the demands of senior
leadership/C-suite on the CRE team changing in
the following areas? (Those who responded that
demands are increasing.)
Question: How well equipped do you feel
to meet these senior leadership demands?
The concern they express will intensify further if nothing changes, as C-suite expectations
are increasing in number and complexity. More and more, senior leadership demands are not
only tactical, but also strategic. CRE teams are being solicited to impact and add value to a
wider range of strategic agenda items. This observation is even more relevant in India, where
our survey findings demonstrate that local demands are increasing faster than the global
average (Fig. 16).
• ‘Increasing the utilisation of existing buildings in the portfolio’ is the demand gaining more
traction in India, where 92% report an increase in demand.
• ‘Reducing direct and run costs’ is the next most increasing demand in India, in line with
global and regional trends.
• ‘Getting clear on the portfolio size and opportunities’ is requested to a much higher degree
in India compared with the global average. This highlights the importance of data and
analytics when it comes to a company’s leadership, and probably indicates that, currently,
real estate data is not being effectively used to evaluate portfolio size and opportunities.
Figure 16: Tactical demands being placed on CRE teams
28%69%3%
Ill equipped to meet the
demands
Can meet
most demands
Well equipped to meet
all demands
92% 74%Increasing the utilisation of existing buildings in the portfolio
India Global
88% 73%Reducing the run costs of the real estate portfolio
86% 75%Reducing direct real estate costs
83% 57%Getting clear on the portfolio size and opportunities via data
77% 63%Limiting exposure to future real estate costs
71% 64%Challenging the business on its presumed space needs
49% 49%Reducing the size of the portfolio
37% 28%Running own vs. lease assessments
23% 19%Increasing the size of the portfolio

Continued global economic volatility has led senior leaders to place an additional set of
strategic demands on CRE (Fig. 17), in particular, around the transformation of real estate
portfolios to enhance asset, workplace and worker productivity.
• Enhancing real estate portfolio productivity is considered to be the most pressing demand
by 78% of respondents in India. This now standard requirement in companies all over the
world is nonetheless a rather complex task for CRE, as it requires combining the multiple
dimensions of workplaces (cultural, technological, etc.) and a smooth collaboration with
other support functions.
• Presenting scenarios and solutions to the business on demand is becoming more
important for strategic decision making, even though CRE teams in India might have
limited internal resources and lack confidence in their contribution to achievement of
corporate goals.
• Holding CRE accountable for driving the sustainability agenda is more frequent in
India than in most other countries. This may be due to an overall move toward more
transparency and sustainability across public and private sectors in India. While
companies around the world gradually embrace the importance of real estate in their
sustainability agendas, India respondents have already started to include it in their
corporate strategy.
• Another strategic demand with particular importance in India is attracting and retaining
talent. With multinational and domestic companies alike competing for the same high-
calibre candidates, senior leadership insists on promoting attractive workplaces to retain
top performers and better attract potential talent.
Figure 17: Strategic demands being placed on CRE teams
Question: How are the demands of senior
leadership/C-suite on the CRE team changing in
the following areas? (Those who responded that
demands are increasing.)
78% 68%Enhancing productivity of the real estate portfolio
India Global
74% 65%Presenting scenarios and solutions to the business on demand
67% 54%Driving the sustainability agenda
67% 65%Transforming the quality of the portfolio/workplace
63% 56%Bringing more flexibility to the leasehold portfolio
63% 46%Attracting and retaining talent
50% 46%Delivering a platform for growth in select markets
44% 55%Enabling remote or mobile working
44% 53%Aligning CRE with business drivers and functional areas

Anticipating demands will help CRE leaders to design an operational structure that is
equipped with the relevant tools and staffed with adequate skills, ultimately enabling an
optimised service delivery and ensuring the recognition of the strategic value of CRE.
CRE leaders should pay particular attention to specific attributes that have the potential to
elevate the CRE function in India (Fig. 18). Having business acumen and an understanding
of the broader business, being focussed on innovation, forward thinking and efficient in
stakeholder management outside CRE are some of the highest-ranked attributes that
organisations in India think CRE should possess. Most are non-traditional real estate
competencies, meaning skills development is a critical component in meeting these
expectations.
Figure 18: Attributes ranked the most important for CRE
Question: : Please select the three most
important attributes to your organisation by placing
‘1’ next to the most important, ‘2’ next to the
second most important, and ‘3’ next to the third
most important.
14%22% 8%
11%19% 17%
14%17% 19%
11%17% 8%
Business acumen/
understanding
of broader business
Focus on innovation
Forward thinking/
challenging status quo
Efficient stakeholder
management outside CRE
14%8% 11%
Improving CRE team
communication/
relationship skills
11%8% 11%Providing data and insights
6% 3%8%Improving internal
reputation of CRE
11%17%Presenting real estate
options and scenarios
11%3%
Adding new skills (e.g.,
change management,
financial acumen etc.)
Rank 1 Rank 2 Rank 3
Upgraded skills are
required to meet
increased expectations

Workplace
transformation is
the key to unlocking
productivity and
optimising portfolios
Boosting productivity is a strategic priority for companies across the globe. While it appeared
as an emerging trend for best-in-class workplace strategy in our Global CRE Survey 2011, it
is now highly expected and is moving beyond the workplace to include people, business and
asset productivity.
In India, the proportion of respondents reporting high productivity expectations is greater
than the global average. Workplace productivity is the outcome most expected from CRE
in India, with 89% of respondents indicating high expectation (Fig.19). Improving people
productivity is highly expected by 75% of respondents in India. These expectations could be
explained by the high concentration of financial services and technology companies in India
that traditionally put more emphasis on workplace and people productivity, as well as by the
dominance of larger companies (those having over 100,000 employees) in our India sample
base.
Figure 19: Company expectations of productivity outcomes from CRE
Question: : What productivity outcomes
does your organisation expect the CRE function to
deliver? (Those who responded that expectations
to deliver in these areas are ‘high’.)
Over the past three years, the workplaces of India-based companies have undergone
significant transformation. Their portfolios have been increasing in size much more than the
global average (Fig. 20). Along with that, the quality of workplace (from either a design or
environmental point of view) increased in 80% of surveyed companies—one of the highest
rates worldwide. While the increasing quality of workplace transformation is expected
to maintain its rate in the next three years, the size of portfolios will slightly decrease (in
contrast to a much stronger decrease globally).
India Global
Improve workplace
productivity
Improve people
productivity
Improve asset
productivity
89%
72%
75%
61%
75%
47%
Improve business
productivity
61%
57%

Getting ready for
portfolio growth in
India and overseas
CRE transformation and platform building gain a sense of urgency when put in the
perspective of a rapid increase in the size of real estate portfolios. CRE teams need to be
ready and well equipped to enable business expansion both in India and in other countries.
While companies worldwide are downsizing their real estate portfolios in developed markets,
most are expecting their portfolios to grow in emerging markets. India is second only to China
in the net expected growth of real estate portfolios over the next three years (Fig. 21).
Figure 21: Global CRE expectations of portfolio expansion — top ten countries
by net portfolio growth
Question: Over the next three years, how
will your portfolio evolve in each of the following
regions? Responses from global respondents
related to global real estate portfolios.
Note: Net portfolio growth percentages are
obtained by deducting responses anticipating
portfolios to decrease from responses
anticipating portfolios to increase.
Question: To what extent has your global
corporate workplace transformed over the last
three years/will transform over the next three
years?
44%
38%
31%
20%
16%
13% 12% 11%
8%
5%
China India Brazil Russia Mexico UAE Turkey Saudi
Arabia
South
Africa
Australia
IncreasedDecreased
India - last three years
India - next three years
Global - last three years
Global - next three years
Quantity Quality Utilisation Density
69%
80%80%
73%
67%65%
42%
-11%
-6% -6%-4%-9% -9%-14%-12%
-26%
-11%
-15%
-9%-7%
-15%
-31%
-36%
48%
71%
77%
68%
79%
66%
51%
72%
62%
Space utilisation rates have been increasing in response to demands from senior leadership
and in line with the global trend. Density rates have been more varied in India, but are
expected to experience significant increase in the next three years.
Figure 20: Extent of global corporate workplace transformation

Question: Over the next three years, how
will your portfolio evolve in each of the following
regions? (Responses from global respondents
as related to India real estate portfolios.)
Globally, 42% of CRE executives expect to increase their real estate in India, and only 4%
will decrease their portfolios in the next three years. The technology sector will experience
the highest net increase, followed by the energy and banking sectors (Fig. 22).
Figure 22: Global CRE expectations regarding their real estate portfolio in
India by sector
Increase Decrease No change
IncreasedDecreased
-7%
Technology Energy Banking/
financial
Retail Pharma/
life sciences
Consumer
products
Government Other
industries
42%
15% 12%15%
58%
45%
29%
-4% -3%-3% -2%
40%
16%16%
23%
3%
44%
14%14%
41%
38%
19%
-13%-12%
Total
(average)
Companies based in India expect their portfolios to grow most in Asia (Map 1), with a net
63% planning to further expand in India. Most of the countries where they expect the highest
portfolio growth (India, China and South East Asia) are semi-transparent markets, according
to Jones Lang LaSalle’s Global Real Estate Transparency Index 2012. This resonates with
our survey results that indicate real estate market transparency as the greatest challenge
when operating in emerging markets (Fig. 23). Compared to the global average, where
political, economic and real estate market transparency rank equally as the important
challenges, real estate market transparency in India is almost twice as critical as the other
two, while the lack of unified real estate standard is also perceived as a great challenge.

Map 1: Net portfolio growth anticipated by India-based companies over the next three years
Question: Over the next three years, how will your portfolio evolve in each of the following regions? (Responses from India-based respondents as
related to global real estate portfolios.)
Note: Net portfolio growth percentages are obtained by deducting responses anticipating portfolios to decrease from responses anticipating portfolios to
increase.
Rest of
region
Country
Stability (0% Net Growth)
1%-10% Net Portfolio Growth
Negative Net
Portfolio Growth (10%-1%)
11%-30% Net Portfolio Growth
30%+ Net Portfolio Growth
China
53%
SEA
44%
India
63%
Question: In your opinion, which of the
following is the single greatest challenge when
expanding into developing/emerging markets?
Figure 23: Perceived greatest challenges in developing markets
India Global
Real estate market
transparency
33%
19%
Economic
transparency
19%
17%
Lack of unified real
estate standards
17%
7%
Political
transparency
14%
18%
Lack of suitable
real estate offer
8%
10%
Start-up costs
3%
7%
Others
3%
8%
None
3%
14%

This report is based on answers received from 545 respondents from across 39 countries through a combination of online and telephone
interviews, including trends culled from multiple responses of Indian organisations.
This respondent pool reflects a representative section of the corporate community in India, ranging from mid-tier companies to large
multinational organisations. It represents a diversity of sectors where technology and financial services dominate.
Jones Lang LaSalle was supported by the market research company Kadence International in collecting, compiling and segmenting the rich
research data set generated.
About the Survey
Responses by organisation size (number of employees)
6%
5,001-
10,000
19%
10,001-50,000
17%
1,001-5,000
36%
More than 100,000
22%
50,001-100,000
Responses by CRE team size (number of CRE employees)
17% 1-5
11%
6%
6%
8%
17%
6%
31%
26-50
51-1006-10
11-15 101-200
Over 20016-25
banking and financial services
25%
technology
33%
others
32%
telecommunica-
tion services
8%
manufacturing and
industrial
11%
professional
services
6%
8%
consumer
products
retail
6%
India respondents breakdown by sector

Acknowledgements
Jones Lang LaSalle gratefully acknowledges the assistance of those CRE professionals
who participated in this survey. We are also grateful to Kadence International, our research
partner for this project.
We welcome any feedback on the published results to continue to improve future editions
and make them as meaningful as possible for our readers. If you have any comments or
would like to participate in future surveys, please email insightteam@jll.com.
Research for this report was conducted by Kateryna Kyryllova and Holly Yang from Jones
Lang LaSalle’s Corporate Research team in Asia Pacific.
Visit www.jll.com/globalCREtrends to explore the global trends in more detail.
See how CRE executives based in your region responded and compare your
answers with the global survey results. Additional reports for specific countries and
industry sectors will be posted to this site as they are released.
Yash Kapila
Managing Director, Corporate
Solutions and Head of Integrated Facilities
Management, India
yash.kapila@ap.jll.com
Sudarshan Malpani
Head of Transaction Management and
Integrated Portfolio Services, India
sudarshan.malpani@ap.jll.com
Nitish Bhasin
Managing Director, Markets, India
nitish.bhasin@ap.jll.com
Anurag Mathur
CEO, Project and Development Services
and Head of Emerging Businesses, India
anurag.mathur@ap.jll.com
Manisha Grover
Managing Director, Business Excellence and
Head of India Corporate Account Management
manisha.grover@ap.jll.com
Report Contributors

About Jones Lang LaSalle India
Jones Lang LaSalle is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint
across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff
strength of over 6100, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of
services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property
and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory.
The firm was named the Best Property Consultancy in India (5 Star Winner) at the International Property Awards - Asia Pacific for 2012-13.
About Jones Lang LaSalle Corporate Solutions
A leader in the real estate outsourcing field, Jones Lang LaSalle’s Corporate Solutions business helps corporations improve productivity in
the cost, efficiency and performance of their national, regional or global real estate portfolios by creating outsourcing partnerships to manage
and execute a range of corporate real estate services. This service delivery capability helps corporations improve business performance,
particularly as companies turn to the outsourcing of their real estate activity as a way to manage expenses and enhance profitability.
www.joneslanglasalle.co.in

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