A new Jones Lang LaSalle (JLL) report reveals that companies that view real estate assets singularly as a source of short-term cost reduction are actually incurring hidden long-term financial and operational risks. The 2013 survey, which measures insights from more than 630 corporate real estate executives in 39 countries, points to the prodigious pressure corporate real estate decision-makers are under as 68 percent of respondents recognize increasing demand from senior business leaders to enhance productivity of the real estate portfolio.
JLL addresses the outcomes of these increased pressures in its Global Corporate Real Estate Trends report, which details the top five risks and rewards corporate real estate users are facing in 2013:
- Singular focus on real estate cost cutting undermines potential rewards from revenue-enhancinginvestments
- Procurement drives price- rather than value-driven outsourcing partnerships
- Workplace productivity is frequently miscalculated in cost-per-square-foot terms, whencontribution to business performance better characterizes returns
- Collaboration with HR, IT and Finance is a must for enhancing workplaces, yet silos continueto constrain joint efforts
- Compromising real estate quality to enter high-growth global markets is dangerous