Jones Lang LaSalle global survey reveals five risks and rewards companies face when balancing cost cutting with revenue-enhancing strategies.
Jones Lang LaSalle’s second biennial report on Global Corporate Real Estate Trends unearths the five top corporate real estate risks, including possible negative impacts to competitive advantage and profitability from cost cutting, procurement processes, lack of collaboration between functions and failure to drive productivity.
Risk One: Singular focus on real estate cost cutting undermines potential rewards from revenue-enhancing investments
Risk Two: Procurement drives price-rather than value-driven outsourcing partnerships
Risk Three: Workplace productivity is frequently miscalculated in cost-per-square-foot terms, when contribution to business performance better characterizes returns
Risk Four: Collaboration with HR,IT and finance is a must for enhancing workplaces, yet silos continue to constrain joint efforts
Risk Five: Compromising real estate quality to enter high-growth global markets is dangerous
A leader in 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.