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News release

Chicago, IL.

Improving Economic and Market Conditions Fuel Commercial Real Estate Growth in U.S. and Internationally

Jones Lang LaSalle expands its property management and landlord leasing business as commercial office market steadily improves


CHICAGO, May 12, 2011 – Corporate confidence is slowly but steadily boosting commercial office real estate leasing and property management activity in top tier markets in the United States and abroad, as real estate companies grow their portfolios instep with the improving economic fundamentals affecting their businesses.   While local conditions still vary widely, globally office markets have reached the bottom of the cycle and are now in the initial stages of growth.

“Market demand and leasing activity are in a cyclical upswing, fueled by improving economic growth and renewed corporate confidence,” said Gregory Green, President of Jones Lang LaSalle’s Americas Agency Leasing business. “With strengthened balance sheets, employers are increasing spending and hiring—spurring encouraging real estate activity around the globe.”

The global office vacancy rate has edged downward and now stands at 14.1 percent. In fact, office net absorption in Asia Pacific more than doubled during 2010; and leasing volumes in Europe in the fourth quarter of 2010 were at their highest level since 2007.

The U.S. office market recorded its fourth consecutive quarter of occupancy gains with 4.5 million square feet of space absorbed in the first quarter of 2011. Vacancy rates decreased for the second consecutive quarter from their cyclical high of 18.7 percent to their current level of 18.4 percent at the end of the first quarter.

Such conditions have allowed Jones Lang LaSalle to expand its property management and landlord leasing business around the globe, and particularly in the United States. In the first quarter, the company added 29 new assignments totaling just under eight million square feet of office and property management listings around the globe.

The United States has seen a significant amount of increased demand. Locally, Jones Lang LaSalle has expanded its landlord leasing and property management teams by adding nine office leasing professionals and 15 property management professionals in the first quarter of 2011. 

“Our ability to grow the business is a reflection of the improving market conditions around the globe and an indication of a growing interest among investors to outsource their property management and leasing services to local experts who know the insides of the market and can maximize their asset value effectively,” said Dan Pufunt, chief operating officer and U.S. property management lead for Jones Lang LaSalle.
 
With improving conditions beyond the United States, investors—and as a result, Jones Lang LaSalle—will also be more focused on serving the needs of its international client base. The firm has developed a Global Leasing Group, comprised of leasing leadership from each of its regional locations to facilitate cross-sharing and client interaction.

“We’re in a global business,” said Giles Wrench, managing director of the iDesk and a member of the Global Leasing Group. “Clients can leverage the interconnectivity of this group to connect their product to a global customer base and benefit their real estate assets.” 

The group collectively aids the agency leasing teams and its investor clients in sharing best practices, making global connections, directly demonstrating the value add of a connected global business to our clients which in turn drives new higher profile more profitable business for the Firm, said Gavin Morgan, Jones Lang LaSalle’s Deputy Managing Director in Hong Kong and the head of leasing. He’s also chairs the firm’s Global Leasing Group.
 
The group’s members include include: Gavin Morgan; Greg Green, President, Agency Leasing  in New York; Giles Wrench, Managing Director, iDesk in New York; Kevin George, International Director in Melbourne; Neil Prime, International Director in London; Steve Smith, Regional Leasing Director in Chicago; Tom Griffin, Director, Client Services in Washington, D.C.; Jacques Bagge, International Director in Paris.

“Strengthening economic and property market recoveries will increase available product and encourage investors to broaden their search in 2011,” added Green. “Downside risks, particularly inflation and interest rates, may dampen investor sentiment, but the balance will be on the upside, fuelling global investment activity and even higher capital values. We are committed to leveraging such opportunities to improve the position of our client’s global portfolios.”

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $43 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.