Leading at the Speed of Change China Corporate Real Estate Trends 2015 reveals that China’s CRE function is continuing to mature toward a strategic and business-driven role. Find out more at: http://globalcretrends.jll.com/China.php

1. China Corporate Real Estate Trends 2015
CHINA
Corporate Real Estate
– Leading at the Speed of Change
0

2. Americas
EMEA
Asia
Pacific44%
20%
36%
total respondents544
countries36
companies
represented
350+
1
The third biennial JLL Global CRE Survey
Note: Region % is based on location of person responding

3. total respondents43
domestic corporates63%
MNCs37%
The China edition of CRE Survey
2

4. 3
A broad range of industries represented
EDUCATION
7%
ENERGY
7%
REAL
ESTATE
7%
TECHNOLOGY, MEDIA, AND
TELECOMMUNICATIONS
39%
MANUFACTURING
AND INDUSTRIAL
23%
BANKING AND FINANCIAL
SERVICES
33%
PROFESSIONAL
SERVICES
9%
OTHERS
15%
CONSUMER PRODUCTS
21%
RETAIL
14%
Note: Does not add to 100%; respondents could select more than one sector.

5. 4
Three key themes emerged from the survey
China’s CRE teams are evolving into
more strategic and business-driven
roles, with growing levels of
interaction with both the C-suite and
procurement.
1 EVOLUTION
China's CRE profession
matures since 2012, keeping
pace with global trends
Chinese CRE teams are seeing growing
senior leadership engagement in their
work - although more is needed - with
demands increasing across a range of
tactical and strategic tasks.
2 EXPECTATIONS
CRE expectations and demands:
Leapfrogging ahead
Both domestic and MNC CRE teams in
China perceive a need for improvement in
their internal relationships with other
departments and with business leaders.
3 INTEGRATION
Integration with other functions,
business units offers an
opportunity to strengthen CRE
Next steps: Forward thinking is the key to advancing China’s CRE function.
Advancing from Good to Great

6. THEME 1
EVOLUTION

7. 6
Compared to 3 years ago, how would you assess the strength of the CRE team’s mandate?
Note: Total may not add to 100% due to rounding.
The majority of CRE teams in China are experiencing a
strengthening mandate
Base: 491 (Global); 43 (China); 17 (MNC); 26 (Domestic)

8. 7
Both MNCs and domestic CRE teams are becoming more
centralized in terms of reporting lines
To what level of the organization does the global head of CRE/CRE leader currently report?
(only includes companies who have a global head of CRE) Note: Total may not add to 100% due to rounding.
Base: 453 (Global); 38 (All China); 17 (MNC); 21 (China Domestic)
Global All China MNC China Domestic
0% 20% 40% 60% 80% 100%
C-suite
(i.e. CEO, CFO, CIO, COO)
Managerial level
(i.e. President, VP, Manager)
Executive level
(i.e. Officer, Executive,
Supervisory level)
Operational level
(i.e. Administrator, clerk)
57%
82%
71%
90%
23%
11%
18%
5%
16%
8%
12%
5%
3%
0%
0%
0%

9. 8
More than one-third of CRE teams view outsourcing as
strategic and focused on long-term value
Please assess how strategic CRE outsourcing is to your firm.
Note: Total may not add to 100% due to rounding.
Base: 422 (Global); 38 (All China); 23 (China domestic) (only companies which outsource)
0% 20% 40% 60% 80% 100%
Global
All China
China domestic
25%
26%
17%17%4%30%30%
13%18%21%21%
24%22%16%12%
Outsourcing decisions are
tactical and focused on
short-term cost savings
Outsourcing decisions are
strategic and focused on
long-term value

10. 9
The biggest drivers for outsourcing in China are heavily strategic
in nature
What are the drivers for outsourcing CRE activities in your organization?.
Note: Total may not add to 100% due to rounding.
Base: 40 (All China); 16 (MNC); 24 (China Domestic)
All China MNC China Domestic
Productivity
improvement
Cost savings Supporting an
Initial Public
Offering (IPO)
Lack of skills
and knowledge
in-house
0%
20%
40%
60%
80%
100%
78%
88%
71%
65%
56%
71%
58%
75%
46%
55%
38%
67%
10%
0%
17%
Refocusing in-house CRE
resources on more strategic
activities

11. 10
THEME 2
EXPECTATIONS

12. More strategic services and capabilities are increasingly
demanded from leadership, particularly in domestic companies
11
How are the demands of senior leadership/C-suite on the CRE team changing in terms of the following areas related
to alignment of CRE with the firm’s strategic priorities?
Note: Total may not add to 100% due to rounding.
Global All China MNC China Domestic
0% 20% 40% 60% 80% 100%0% 20% 40% 60% 80% 100%
Presenting scenarios
and solutions
to the business
on demand
Aligning CRE with
business drivers and
functional areas
(HR, IT, Finance)
Driving the
corporate
sustainability
/CSR agenda
Bringing more
flexibility
to the leasehold
portfolio
Base: 491 (Global); 43 (China); 17 (MNC); 26 (Domestic)
51%
67%
53%
77%
64%
74%
81%
70%
65%
75%
76%
74%
57%
59%
76%
45%
Delivering a platform
for growth
in select markets
Attracting and
retaining talent
Supporting
cultural change
Enhancing the
productivity of the
real estate portfolio
Enhancing flexible
(remote, mobile)
working
48%
46%
53%
41%
56%
60%
47%
70%
59%
58%
59%
57%
75%
77%
76%
77%
62%
65%
82%
52%

13. 12
Expectations for productivity outcomes are higher
than we see globally
What are your company’s expectations from CRE around the following productivity outcomes?
% reporting high expectations
Note: Total may not add to 100% due to rounding.
Base:
Improve asset productivity: 269 (global); 30 (China); 17 (Domestic)
Improve workplace productivity: 274 (global); 31 (China); 18 (Domestic)
Improve business productivity: 271 (global); 30 (China); 17 (Domestic)
Improve people productivity: 275 (global); 30 (China); 17 (Domestic)
Improve asset
productivity
Global All China China Domestic
Improve workplace
productivity
Improve business
productivity
Improve people
productivity
0%
20%
40%
60%
80%
100%
61%
67%
82%
76%
81% 78%
60%
63%
76%
60%
70%
76%

14. 13
Over two-thirds Chinese CRE teams report a mature, transformative
sustainability strategy
How would you rate the maturity of your firm’s sustainability strategy?
Note: Total may not add to 100% due to rounding.
Base: 491 (Global); 41 (China)

15. THEME 3
INTEGRATION

16. 15
Integration across the business is viewed as the greatest weakness
of Chinese CRE teams
How does your CRE team perform relative to the following attributes?
Note: Total may not add to 100% due to rounding.
Base: 43 (China); 26 (China Domestic)

17. Similarly, lack of c-suite commitment, and integration are viewed
as the biggest constraints to CRE in China
16
In your opinion, what are the top three constraints that are hindering CRE from enhancing itself as a strategic
value-add to your organization? Top ranked answer, %
Note: Total may not add to 100% due to rounding.
Base: 491 (Global); 43 (All China); 26 (China Domestic)

18. 17
One-fifth of respondents in China report being
ill-equipped to meet demands from leadership
How well-equipped do you feel to meet the changing demands?
Note: Total may not add to 100% due to rounding.
Base: 476 (Global); 41 (All China); 25 (China Domestic)

19. Advancing from good
to great

20. To advance from good to great, China’s CRE teams should focus in a
few key areas
19
Obtaining greater senior
management backing.
1 Improving data and
analytics capabilities.
2 Continue making the case for
using outsourced service
providers to supplement in-
house capabilities.
3
Improving their general business skills and
building stronger relationships with internal
leaders are critical goals that can help
overcome the lack of sustained C-suite
commitment seen as a top constraint by
China’s CRE teams.
With enhanced data and analytics capabilities,
China’s CRE teams undoubtedly will be better
positioned to demonstrate forward thinking, and
could use predictive analytics to present
persuasive, fact based innovations to senior
leadership.
Overcoming lack of trust and perceived value
of outsourced services will require new
processes for assessing providers, as well
as requiring CRE service providers to adjust
their offerings and capabilities to match the
needs and preferences of this growing
market.

21. 20
Additional tactical steps to strengthen CRE in China
Hiring and training CRE staff with strategic
thinking and business skills that encompass
knowledge of finance and other business areas;
Hiring and training for the ability to assess and
manage external vendors, and to help vendors
become more effective at operating within China’s
unique business environment;
Prioritizing people and people skills, to further
engagement with business unit leaders;
Creating a strong data and analytics platform to
bring science to long-term strategy and everyday
delivery, and to present data-driven, innovative
ideas to senior leadership;
Defining success and benchmarking progress
and position relative to peers
Leveraging vendors not only for tactical
execution, but also to extend strategic capabilities
such as data and analytics and to gain access to
global best practices in CRE.
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22. THANK YOU