As we approach, the 10th anniversary of the 9/11 tragedy, Corenet Global has released a survey on the impact the 9/11 attacks had on the corporate workplace in the US and around the world.
Events of 9/11 Changed the Workplace
CoreNet Global Survey: Companies now employ a variety risk- management measures emphasizing business continuity
ATLANTA, GA (6 September, 2011) – CoreNet Global, the world’s leading association of corporate real estate (CRE) and workplace professionals, today released the results of a survey which found that the tragic events of 9/11 had a permanent effect on the workplace.
Three-fourths of the respondents believe that companies in general are as vigilant about security measures today as they were in the aftermath of 9/11. Continue Reading →
IAOP published the Top Advisors in the Outsourcing industry. A great list. However, some people are missing. Real Estate and Facility Management is considered niche specialty in the outsourcing business. (It is estimated to be a 100 billion to 200 billion dollar market place, but is it still a niche business.)
I see many outsourcing advisors. I am often asked to refer advisors to sourcing professionals and CRE leaders. RE&FM outsourcing is very specialized. Structuring a complex CRE/FM Outsourcing deal is not simple. Some advisors know the space well, others are learning.
The following are outsourcing advisors who are specialists in leading RE & FM outsourcing deals. In fact, these companies are advising most of the largest global corporations in the world. You need to know these people. Continue Reading →
In my blog last week, I focused on the ways a service provider can help create a bad outsourcing deal. However, a buyer can behave in ways which can derail a CRE or FM outsourcing contract. The attached checklist is a good way to insure your outsourcing deal does not meet expectations. So if you want to create a train wreak in corporate real estate and facilities management do the following:
When outsourcing deals go badly. Usually all parties to the deal have some level responsibility in the lack of success. Here are 10 things to do, if you are selling CRE outsourcing services to insure a bad outcome.
1.Remember the lowest bid ALWAYS wins. You can always change order your way out of trouble later. Bid unrealistically low cost.
2.Never push back on an unrealistic or uneducated client. The answer to every question is yes. Never give trusted advise.
3.Always push back on the most minor and non-material items. Clients love that stuff.
4. Overstaff everything. Even if your hidden costs are more expensive than the pre-outsourcing business conditions.
5.Keep the same people who did the job before in the same job. Mark up the costs. Earn a margin. Change nothing.
6.Don’t focus. Bid everything. Every RFP, Every RFI. Toss it all up on the wall. See what sticks. Never tell clients what you are good at and if you think you are a good fit.
7.Never cooperate with vendors, competitors or clients.
8.Take on unrealistic commercial terms and legal risk . It is the most sustainable way to run a business. Your clients, shareholders and employees will all benefit from this.
9. Make sure everyone knows how smart you are. Don’t listen. Lecture. You are the expert. They are quite lucky to know you.
10. Change order everything. Argue with the clients. Remember: You are not there to solve problems for your clients. You have a business to run.
Facility management industry faces talent challenge
A shortage of skilled facility managers is the biggest hurdle to the delivery of FM services in Asia Pacific, according to a Jones Lang LaSalle survey of over 60 senior facility management professionals at the recent World Workplace Asia 2012 conference held in Singapore.
Key survey findings were:
• Almost three-quarters, or 73% of respondents, believe that skills shortage is the most important factor inhibiting the delivery of facility management in Singapore.
• Turnover of talent is the second biggest challenge facing the industry in Singapore for two-thirds of respondents (67%), suggesting that skilled FMs can and do utilise their significant bargaining power.
• More than half (57%) believe that a lack of understanding around the value of facility management is a major challenge to the delivery of these services in Singapore.
• The top three benefits that respondents expect facility management outsourcing to deliver are access to best practice, value for money and innovation in business.
• The top three factors that will shape the future of facility management are alignment to core business, business continuity, and cost and risk management through outsourcing.
“Facility managers in the region today are faced with a difficult challenge: businesses are asking for—and expecting—more from their service offering and delivery. This means that preparedness and access to non-traditional skills are now the most pressing concerns for professionals in the industry,” said Jordi Martin, Managing Director of Integrated Facilities Management in Asia Pacific for Jones Lang LaSalle
“At the same time, businesses are embracing facility management as a key component of their real estate strategy and are keen to work in partnership with FM providers. For potential new recruits within and outside the industry, this is an attractive prospect,” Jordi added.
Top CRE Firms Report Solid Mid-Year Returns, But See Caution in Market Uncertainty
CRE Firms Enter Important Second Half of 2012 Facing Lingering Questions About Global Sovereign Debt, Job Growth And Economy’s Potential Impact On Property Markets
By Randyl Drummer
August 1, 2012
CEOs of the major publicly traded real estate services firms hit on several of the same themes this week in outlining their mid-year financial results, presenting a portrait of busier transaction activity and improving property fundamentals in a still tentative real estate recovery, hindered by uncertainty over the U.S. elections — and especially, slower-than-expected job growth and other setbacks in the ongoing saga of the U.S., global and European economic recoveries.
Common themes in conference calls for second-quarter and six-month financial reports by executives for CBRE Group, Jones Lang LaSalle, HFF Inc. and FirstService Corp., parent of Colliers International — companies at the center of real estate activity and market conditions — included solid growth in investments sales activity, especially in the Americas; and weaker leasing revenues as landlords and tenants put off making decisions.
Other themes sounded by CEOs and their teams included:
Growth in outsourcing business by the industry’s two largest players, CBRE and JLL, as global companies strive to become more efficient in light of the global economic slowdown.
Increasing operational expenses from investments in higher sales headcounts, and acquisition and integration costs which cut into several firms’ margins.
Year-over-year growth in commercial mortgage brokerage business driven by continued capital availability, generally low interest rates, competitive spreads and investors continued search for yield.
Worldwide > News > News Detail
CHICAGO, LONDON, SINGAPORE, September 12 2011 – Jones Lang LaSalle has been honoured with a number of awards at the prestigious annual Euromoney Real Estate Awards (2011), being voted number one Global Real Estate Advisor and Consultant. This is the third time Jones Lang LaSalle has won the overall global award since the award programme was established in 2005; this year the firm also was voted top Global Advisor and Consultant for Valuation and Research. Continue Reading →
DUBLIN–(BUSINESSWIRE)– Research and Markets ( http://www.researchandmarkets.com/research/9e9447/facilities_managem ) has announced the addition of the ” Facilities Management Outsourcing – Corporate …
Growth in the FM corporate outsourcing market is expected from 2012 onward, but will be slow and in line with construction projects being finished.
According to the latest FM outsourcing report from AMA Research, “Maturity in the corporate FM market makes it heavily dependent upon the economic climate.”
“As a result, the market is expected to exhibit some stabilisation and subsequent growth over the short to medium term, recovering only slowly from 2012 as construction activity improves and new projects reach completion.”
The report, Facilities management outsourcing: corporate sector market, 2011-15, focuses on commercial offices, retail, entertainment and leisure, manufacturing and warehousing, energy and utilities, and privatised transport services.
Joining a growing list of corporations that are moving their real estate operations to a third-party provider, financial services firm Principal Financial Group (NYSE: PFG) today outsourced facilities management for its 4.3 million sq. ft. of office space to Jones Lang LaSalle.
The five-year contract includes Principal’s 2.4 million sq. ft. corporate campus in Des Moines and more than 150 owned and leased field offices across the United States and in more than 15 countries throughout Asia, Australia, Europe and Latin America.
The deal is remarkable for the range of services it will bring into play, says Richard McBlaine, international director at Jones Lang LaSalle. “They wanted a company that could bring a complete suite of integrated services, everything from real estate consulting through transactions, project management, facility management, occupancy planning — basically the entire suite of services that we provide to occupiers.”
Contact: Richard Kadzis, +1-404-589-3240, email@example.com, or Bailey Webb, +1-404-589-3216, firstname.lastname@example.org, both of CoreNet Global
Jones Lang LaSalle announced today that it has been awarded a 4.3-million-square-foot real estate services contract for facilities management for the Principal Financial GroupÂ® . The contract includes the 2.4-million-square-foot corporate campus of The PrincipalÂ® in Des Moines, Iowa in addition to its global field offices.