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3 Inevitable Trends That Could Impact Commercial Real Estate’s Future

In a recent report, Jones Lang Lasalle identified five real estate trends that will mean big changes for your organization’s current status and future direction of the industry.

Now that the opportunities for commercial real estate upon us remains clear, a shift in skills of commercial real estate (CRE) teams and work-style is coming into its own. It was reported two years ago, that the greatest risk of such opportunities were to under-resourced CRE teams. But, when examined closely today, there is an immediate need to elevate the CRE functions across industry sectors and geographies. Organizations that understand the value and importance of these expectations of what CRE teams should execute, and why and how they should do it will position themselves to a higher va within the company and increase engagement with the C-suite. Those that don’t will still remain at risk for underperformance and continue to struggle.

According to Jones Lang LaSalle’s 2015 Global CRE Trends report, CRE teams are undergoing “significant structural change.” The report indicated predictions toward an increased response to scrutiny and expectations. But none of that is possible without CRE leaders abilities to draw upon resources of outsourced service providers with greater frequency. Most CRE teams are still striving for excellence in efficiencies, high performance teams, and improvements in service delivery. Jones Lang LaSalle’s report identified three trends which characterized the challenges for CRE leaders and their teams:

CRE Teams Become Global And Centralized

It may appear that team structure is globally organized already, but the control of greater centralization continues to evolve and is expected to become even greater within the next three years. In Jones Lang LaSalle’s survey, ninety-two percent of respondents have a dedicated global head of CRE, up from 86 percent in 2013, while more than half of those respondents themselves occupy globally or regionally focused roles. This outcome should enable CRE teams to execute with greater consistency across borders. Shorter term focus may also be with costs.

The Need For Interaction And Integration

CRE teams cannot and do not, operate in isolation – success is dependent on their ability to integrate and interact with various internal groups across the organization — support from HR, IT, finance, internal procurement, business unit and sourcing professionals become critical. The growing pressure to increase workplace productivity has truly impacted the new level of integration between CRE and other corporate support functions. But this pace of adoption with shared services integration has not occurred as quickly as predicted.

Delivering Broad Tactical And Strategic Tasks

If you think the pressure for CRE teams to deliver against a broad range of strategic activity and tactical tasks is simply a passing fad, you’d better think again. According to the Jones Lang LaSalle’s study, 77 percent of respondents witnessed an increasing demand to deliver cost savings and pressure to deliver environmental efficiency, occupational density, portfolio flexibility and reduction in portfolio size. This focus is continuing to influence cost by many factors — the operational environment of the last five years has created more transparency in real estate costs, in turn, more expectations are placed for CRE teams to deliver more cost savings. It is predicted that initiatives will drive this form over the next three years, while function, experience and effectiveness of the workplace will become commonplace for more CRE professionals.

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Published by

Jennifer Lynn

Jennifer is a business journalist and has over 15+ years of professional experience working in technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit and retail sectors. Specializations in the field of analytics, management consulting serving global clients from medium & large scale organizations. She is a proficient and passionate business executive; manager utilizing analytics data to drive smart business decisions. Technology, Finance, Investments, Retail, Management, Consulting, Strategy. Have published on,, and many others. Currently the Commercial Real Estate Contributor for Retail Solutions Advisors.