The financial services sector has been challenged by the simultaneous pressures of intense competition, increased regulation, and margin compression. Although profits are once again rising for some banks, it is clear that there are still many risks ahead. In this environment, an optimized corporate real estate platform is no longer an option, but a necessity.

1. Four Efficiency Challenges Facing
Financial Services Real Estate Teams
The financial services sector has been challenged by the simultaneous pressures of intense
competition, increased regulation, and margin compression. Although profits are once again
rising for some banks, it is clear that there are still many risks ahead. In this environment, an
optimized corporate real estate platform is no longer an option, but a necessity.
1. Achieving Personnel and Portfolio Efficiency
Financial services organizations are moving towards
a centralized real estate management structure
30%
31%
55%
11%
12%
GLOBAL LEVEL
REGIONAL LEVEL
COUNTRY LEVEL
CITY LEVEL
SITE SPECIFIC
On average, organizations have one
corporate real estate staff per....
$
CONSUMER
PRODUCTS
PHARMA / LIFE
SCIENCES
7,278
EMPLOYEES
5,044
EMPLOYEES
TECHNOLOGY
& TELECOM
FINANCIAL
SERVICES
ENERGY
GOVERNMENT
4,519 4,476 2,412
EMPLOYEES
EMPLOYEES
1,784
EMPLOYEES
EMPLOYEES
2. Rising Expectations for Workplace Productivity
Increasing demands of senior leadership
FINANCIAL
SERVICES
ALL
INDUSTRIES
72% 65%
79%
TRANSFORM
WORKPLACE
QUALITY
68%
ENHANCE
REAL ESTATE
PORTFOLIO
PRODUCTIVITY
The intensity of workplace transformation in financial services companies
will increase over the next three years
UTILIZATIO
DENSI
79%
72%
3. Interacting with Procurement and Shared Services
Procurement teams are more
proactively involved in real estate
decisions in financial services
Integration of real estate, IT and HR
functions will increase significantly
In 3 years
HR
IT
58%
47%
FINANCIAL
SERVICES
48%
ALL
INDUSTRIES
37%
Today
27%
42%
Percentage of companies using shared services type
of collaboration
4. Managing Emerging Market Expansion
Most financial services organizations anticipate a significant increase of
their real estate portfolios in emerging markets in the next 3 years
CHINA
39%
The markets of highest
portfolio growth are
mostly non-transparent
%
COMPANIES EXPECTING
NET PORTFOLIO GROWTH
#
TRANSPARENCY INDEX
1 - HIGHLY TRANSPARENT
5 - OPAQUE
BRAZIL
17%
2.54
INDIA
39%
2.83
3.07
Source: The Productivity Imperative:
Global Corporate Real Estate Survey 2013
Jones Lang LaSelle www.jll.com/globalCREtrends
© Jones Lang LaSelle 2013