Making Global Connections: Six JLL Leaders Attend the World Economic Forum’s Annual Meeting

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By: JC Pelusi, Market Leader, Managing Director, JLL 

WEF DavosLast month, global leaders in business, government, international organizations and academics gathered at the Annual WEF in Davos-Klosters, Switzerland to discuss major issues and themes around the global economy. High-profile speakers at the symposium included Al Gore, Bill Gates, the Prime Minister of Italy, professors from Harvard and MIT, bankers from Russia and China, among others.

Honored among 100 organizations as a WEF Strategic Partner, JLL also sent six global leaders to participate in the event, including:

In Davos, JLL led the conversation around the most impactful international commercial real estate trends. Below, I’ve included a snapshot of key topics for discussion at the event.

  • The top 30 cities for real estate investment. Half of the world’s real estate investments take place in 30 cities worldwide. Take a look at the full list.
  • The latest City Momentum Index (CMI) tracks the rate at which key cities are evolving. JLL ranked the top 20 cities that are changing at the most accelerated pace, with London coming in at number one. See the full CMI for details.
  • Real estate’s role in the market cycle. Real estate plays a key role in financial cycles, and can impact both their frequency and severity. Check out the full release for details to read up on real estate’s cyclical nature.

From snapping a selfie with a princess to evaluating how India’s emerging economy could someday outpace that of China, JLL’s thought leaders recapped their personal experiences on the JLL blog, Notes from Davos.

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Big Data Meets Commercial Real Estate (INFOGRAPHIC)

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By: JC Pelusi, Market Leader, Managing Director, JLL 

According to JLL research, only 28 percent of commercial real estate companies heavily rely on data usage. But, change is coming. In just two years, more than half of corporate real estate decisions will be made using data and analytics.

Data and Future CREThanks to new technologies, building data can give executives invaluable insight into how the office is actually utilized by employees. For example, building sensors can detect when rooms are busiest or when meeting rooms are empty for extended periods. Simple insights like these can help guide more informed decision-making.

Big Data, Bigger Benefits

Whether related to energy consumption or office utilization, data can play a leading role in cutting costs. So what’s keeping executives from drilling into data?

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Commercial Real Estate News Brief: January 2015

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Global CRE Investment Volumes Signal Continued Uptick for 2015  

In the final quarter of last year, global commercial real estate capital markets reached new heights “at near-record levels,” according to JLL.

JLL CRE News Brief

Newspaper image via NS Newsflash.

  • Investment Volumes: +9% YOY
  • Office Vacancy Rates: 12.7%
  • Capital Value Growth: +8.3% YOY

In addition to movement in capital markets, occupier demand continues at a healthy pace, with more activity expected from traditional markets in 2015. Thanks to higher levels of demand and a shortage of supply, experts foresee new development.

Another trend: investors are noticing secondary markets. In fact, JLL experts say, “There is a notable growing interest in higher-yielding assets in smaller and second-tier locations, particularly in the U.S. and Europe…”

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JLL’s Local Team Reflects on 2014, Recognizes Leading Brokers at Annual Event

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By: JC Pelusi, Market Leader, Managing Director, JLL 

JC_Presentation

(Above) JLL’s regional Market Leader and Managing Director spoke at the annual meeting in Pittsburgh.

Last week, Pittsburgh, affectionately known as “the Burgh,” was the host city for our annual regional meeting. Here, we celebrated last years’ accomplishments and discussed 2015 goals. It’s the one time of the year that we take a few hours away from email and phones and learn about tools, techniques, industry research and trends delivered by JLL subject matter experts from around the country.

We also take this opportunity to learn from each other. Considering our region covers seven cities across three states, in-person meetings are instrumental in knowledge-sharing and camaraderie, both of which encompass JLL’s culture.  We are collaborators first and foremost with a laser focus on our clients.

But this isn’t just a nice statement to put on a website or piece of collateral. It’s truly how our organization, from business unit to business unit, region to region, continent to continent, consistently develops tailored solutions that meet some of the most complex client challenges. And each year, we celebrate those individuals who excelled in achievement and client satisfaction.

We’d like to take a moment now to offer well-deserved congratulations to our 2014 top brokers in the region.

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JLL Experts: Rust Belt Critical to Future U.S. Economy

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By: John Sikaitis, Managing Director and Christian Beaudoin, Senior Vice President – JLL

John Sikaitis at a recent speaking engagement.

John Sikaitis at a recent speaking engagement.

While there’s fluctuation across the globe, the overall outlook for the U.S. economy remains strong. Thanks to an economic environment characterized by the continued elevation of corporate profits, the strongest job market since the late 90s and economic growth that is roughly 15 to 20 percent above levels in 2013, the U.S. dollar is at its highest level in years.

That momentum, coupled with a substantial drop in oil prices, is energizing consumers, fueling the highest consumer confidence level in eight years, which will drive enhanced growth to economic prospects over the next 24 months.

The same optimism exists for the commercial real estate industry in the U.S.

Net absorption topped 50 million square feet in 2014, a 38 percent increase from 2013; vacancy fell below 16 percent for the first time since 2008 and the American corporate is demonstrating increased signs of growing their real estate footprint. In the third and fourth quarter of 2014, 46 percent of tenants greater than 20,000 square feet completed leases with a growing real estate footprint—double the rate of any other point in this cycle. Across the vast majority of markets, the recovery has gained substantial momentum, fueling enhanced confidence from landlords and rent growth across 85 percent of the markets JLL tracks in the United States.

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Jobs Come Back to Ohio (JLL Employment Reports)

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By: Andrew Batson, Senior Research Analyst, JLL 

Following a painful recession between 2008 and 2010, during which 8.7 million jobs were lost, the American job market is thriving once again.

In fact, CNNMoney reported, “…there are now more jobs in the country than ever before.” But, we still have work to do. According to the same source, the job market still needs two to three years to fully recover.

In the Midwest, economic and employment growth are following the national upward trend. With new job opportunities and maturing industries, Ohio’s three big cities are contributing to the nation’s ongoing economic health.

Read on for an overview of employment trends, based on JLL’s most recent Office Employment Updates released in January 2015.

Employment News: Cincinnati

Cincinnati reported its highest addition in job growth since June 2012, with 23,000 new jobs year-over-year. Office employment, in particular, helped to accelerate the region’s job growth. Out of the 5,700 new jobs added to the city last year, approximately 65 percent were professional and business services positions, according to the Bureau of Labor Statistics (BLS).

Download the full report for details.

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Commercial Real Estate News Brief: December 2014

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

New Features Make Smart Buildings Even Smarter 

JLL CRE News BriefUnfortunately the U.S. currently ranks second globally for CO2 emissions, right behind China, according to a recent article in TechCrunch from JLL’s Parker White (@jParkerWhite).

What’s more shocking, CRE is accountable for about 40 percent of all emissions in the U.S. Luckily, change is already in the works. To combat commercial real estate emissions, we’re seeing a few technologies enter the scene, including:… Read More

Reinvent Your Office in 2015: Workplace Strategy Tips

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By: JC Pelusi, Market Leader, Managing Director, JLL 

Incredible, innovative and intelligent workspaces exist in our own Midwest backyard. Fast Company highlighted the recently renovated and re-designed Quicken Loans office in downtown Detroit, for example.

The physical workspace is an indisputable factor in employee satisfaction and production. A strategic office space can drive cost reduction, attract and retain talent, and fuel employee engagement. It’s the backbone of any business, and the home-base for big decisions and milestones.

That’s why JLL’s regional team decided to conduct a survey to learn more about what businesses in Ohio, Michigan and Pennsylvania prefer when it comes to office space.

Pinpointing Trends: Open vs. Closed Office Space

Do cubicles accelerate actual production of work, or do they limit creativity? Does real estate even matter when professionals are job searching? These are the types of questions we asked local professionals. We weren’t surprised that 80 percent said their dream office would include a good mix of open and closed space.

A few other trends uncovered include:

  • Fifty-one percent of respondents work within a mix of open and closed space, and another 36 percent work in a traditional office.
  • Thirty-five percent said open, collaborative office space hinders individual productivity. But, 16 percent said it fuels productivity.
  • When considering a new employer, real estate is a factor in 70 percent of respondents’ decision-making process.

The future of your business will be influenced by your space, but remember that there is no universal rule for the perfect space. Every business should observe its particular work styles, and build in amenities and features that cater to those preferences.

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Happy Holidays from JLL

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From our team to yours, wishing you a safe, happy and healthy holiday season.… Read More

How Low Gas Prices will Impact the Office Market (SLIDESHARE)

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By: Dan Adamski, Managing Director, JLL

For the first time in years, filling up isn’t getting us down.

Diesel prices sitting below $3 are welcomed by consumers, especially as the holidays arrive. In June of this year, gas prices reached $3.68. Now, they’re as low as $2.73, according to AAA. The drop in gas costs hit quickly, and its impact on multiple industries varies.

The Situation: Oil Prices Fall Worldwide

For the first time in five years, the price of one barrel has dipped below $70, which is down from more than $100 per barrel in the last five months. Causes for the drop in costs include:

  • Excess supply and little slow down in production
  • Drop in overall demand, due to slower economic growth in China and lower levels of oil consumption in Europe
  • Strict fuel standards (good news for the environment) and a sharper focus on energy efficient practices

The biggest cause, however, is supply. There are three million more barrels a day in the global market now than there was in 2011. Combined with a new focus on sustainability and weaker demand, it’s no wonder that prices have decreased.

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