JLL’s report, Elevate to Excellence, highlights an immediate need for change in the CRE industry. We’ve identified four themes that characterize the challenge ahead: Centralization, Integration, Expectation and Outsourcing. Find out more at: www.jll.com/globalCREtrends

1. to excellence
ELEVATE
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
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