State of Tennessee to Drive $50 Million Cost Savings and Service Improvements in Five Years State's innovative approach to achieve greater efficiencies through 10.5 million-square-foot real estate portfolio
NASHVILLE, Tenn., May 29, 2013 /PRNewswire/ -- Governments around the nation, like corporations, are challenged to do more with less. One innovative state, Tennessee, is seeking to achieve greater efficiencies across 10.5 million square feet of its real estate portfolio. To drive the most advanced assessment and implementation of portfolio strategy of any state known to date, Tennessee selected commercial real estate leader Jones Lang LaSalle to provide comprehensive facility management services for its state-owned and leased office facilities throughout Tennessee. This facilities management partnership is expected to save the State an estimated $50 million over the next five years.
"In our ongoing efforts to enhance Tennessee's government, we are implementing new strategies that allow the State to reduce costs and improve the work environment for our employees," said Steve Cates, Department of General Services Commissioner, State of Tennessee. "Real estate represents a significant opportunity to improve efficiency, enhance performance and save taxpayer dollars."
The State's objectives in outsourcing facility management services are to:
- Reduce operating costs
- Improve the quality and timeliness of services
- Implement "best in class" real estate practices
- Provide continuous innovation and leadership
- Provide scalable and flexible energy and sustainability solutions for state buildings
Jones Lang LaSalle was hired in 2012 to assist in the implementation of Commissioner Cates' vision to reduce the state's real estate portfolio by more than one million square feet. Jones Lang LaSalle completed an in-depth facility assessment of 33 state buildings, covering 4.6 million square feet. A master occupancy plan also was completed, which contained recommendations for more efficient use and operation of state real estate. The plan identified under- and over-utilized properties and included recommendations to optimize the short- and long-term capital asset program.
The State launched Transforming Tennessee for Tomorrow (T3) – to move approximately 14,000 employees from expensive or outdated office space into more efficient and improved buildings. This program has resulted in updated office space, increasing employee productivity by significantly improving the work environment.
"The State of Tennessee is truly innovative in its approach to managing real estate," said Herman Bulls, Chairman of Public Institutions, Jones Lang LaSalle. "It is setting the bar for all state governments looking for opportunities to improve employee work environments while displaying fiscal responsibility toward the state's owned and leased real estate assets."
Jones Lang LaSalle Public Sector Real Estate Practice
Jones Lang LaSalle's public sector real estate practice is a premier provider of strategic real estate advisory and transaction services for local, state, national and international public institutions, covering the spectrum of the real estate cycle. From strategy and project management, to transaction and execution, Jones Lang LaSalle brings public sector entities the perspective and expertise to turn a real estate portfolio into a collection of working assets that meet operational and occupancy requirements while generating revenues and reducing costs.
For more information on how Jones Lang LaSalle supports government goals, visit: http://bit.ly/YCbb1M
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 $47.7 billion of real estate assets under management. For further information, visit www.jll.com.
SOURCE Jones Lang LaSalle