LAS VEGAS, Oct. 22, 2013 /PRNewswire/ -- Are you feeling a bit too close for comfort in your corporate office space? You're not alone. New workplace research shows that 62 percent of corporate real estate executives have increased workplace density globally during the past three years, according to Jones Lang LaSalle (JLL)'s Global Corporate Real Estate Trends 2013 (GCRES) report. You may be getting to know your work neighbors even better in the years ahead, as 80 percent of corporations expect to increase space utilization even more during 2013 to 2016 (see Fig. 1 below), according to JLL's report, which measured survey insights from 630 corporate real estate executives in 39 countries.
(Figure 1: http://photos.prnewswire.com/prnh/20131022/CL01021-a )
"More workers crammed into the same, or less space, isn't always the best outcome for corporations. Workplace strategies that leverage real estate and technology improve the productivity of an organization's greatest assets – its people and its culture," said Bernice Boucher, Jones Lang LaSalle's managing director of workplace strategy in the Americas. "Companies can both lower occupancy costs and enable the productivity of employees by creating a mix of flexible work environments."
Flight to Quality Reduces Quantity
Even as corporate portfolio square footage per employee is shrinking, corporate real estate executives are increasingly focused on the quality of the workspace and offering choice, over pure size. Two-thirds of JLL's GCRES respondents report improvements in their workspaces from a design or environmental standpoint.
"The clear trend is toward flexible, high-density and high-quality workplaces that support collaborative work. The end goal is increased employee engagement and improved talent recruitment and retention," said Christian Beaudoin, JLL's Research Director for the Americas region.
"New workplace strategies allow employees to work where they can be most productive on any given day, and where the right people can come together to collaborate," explains Tim Venable, Vice President, Knowledge Services, at CoreNet Global. "Our CRE 2020 research shows that corporations are simultaneously focusing on reducing overall space usage—while also highly focused on supporting innovation. Innovation doesn't often happen when employees are tied to a single location, every day."
New Real Estate Model
The model of work has changed as global knowledge workers use technological advances to exercise the freedom to work outside the office, either from home or emerging "third places."
"Companies need to embrace a mix of solutions that include space inside the office, but that also go beyond the boundaries of the traditional corporate real estate portfolio," said John Hampton, Senior Vice President, Innovation and Product Development, Jones Lang LaSalle. "These solutions need to evolve beyond co-working and into viable proworking programs that reduce fixed-space commitments for the corporation, while providing workers with greater choice as to where they want or need to work."
Hampton led the development of Jones Lang LaSalle's new service called Space Exchange™ that addresses both the supply and demand pressures by adapting portfolio optimization and sharing economy principles to suit the needs of large enterprises. To learn more about JLL's approach, watch the brief video summary.
Space Exchange is delivered as a coupling of JLL advisory services and real-time marketplace technology. Advisory services address workforce space requirements; align people and venues; make underutilized space ready for productive use; connect corporations with a vetted network of professional locations outside of a company's portfolio; and manage those locations on an ongoing basis. Space Exchange's cloud-based marketplace technology, powered by LiquidSpace, enables on-demand transactions to satisfy short and medium-term workplace requirements via simple web and mobile apps.
According to JLL's GCRES report findings, corporate real estate executives need technological tools that support workplace strategic planning, like Space Exchange. Forty-six percent of GCRES respondents report a need for occupancy planning tools (Fig. 2) as critical for delivering workplace solutions and measuring productivity gains.
(Figure 2: http://photos.prnewswire.com/prnh/20131022/CL01021-b )
"The legacy corporate real estate paradigm that forces long-term commitments to fixed real estate simply can't meet the needs of today's dynamic organizations. CRE asset managers are no longer willing to pay for underutilized offices and engaged employees expect the freedom to choose the places where they can do their best work, whether onsite or on the road," said Mark Gilbreath, CEO and Founder of LiquidSpace. "Space Exchange™ is the first and only services and marketplace solution tailored to the unique needs of large enterprises seeking to modernize and optimize their workplace operations."
The need for tools that also support change management was echoed in the results of JLL's "Proworking Poll" announced today during a media webcast in conjunction with the CoreNet Global Summit in Las Vegas. The poll of 82 corporate real estate executives further underscores the challenges of implementing flexible work environments, as 42 participants rated the fear of internal resistance to change as their greatest burden.
The corporate unwillingness to change was evident from respondents that indicated companies are still tied to inefficient real estate models such as providing dedicated offices or cubes, home offices, or shared cubicles; yet zero percent offered a third place or co-working location for employees to work.
"While many companies face barriers that impede the implementation of flexible work environments, 78 percent of our poll respondents said that it was important to create more workplace choices for their company in the next six months," said Hampton. "The demand for tailored technology solutions like Space Exchange that applies the principles of shared space use to suit enterprise needs is quickly becoming a critical factor for a high-performance workplace."
To request a full copy of JLL's Proworking Poll or GCRES report, visit www.jll.com/globalCREtrends or download the firm's "Proworking Roadmap" e-book on JLL's new SlideShare profile. Social media users can also engage in the conversation about the future of corporate real estate on Twitter using #CRETrends or #CNGLasVegas.
A leader in the real estate outsourcing field, JLL'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.
For more news, videos and research resources on Jones Lang LaSalle, please visit the firm's U.S. media center Web page. Bookmark it here: http://www.us.jll.com/united-states/en-us/pages/news.aspx
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.
SOURCE Jones Lang LaSalle