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News release

Chicago, IL

Jones Lang LaSalle Survey Reveals Increased Focus on Real Estate for Retailers in 2011

2010 Retail Forecast Survey indicates emphasis on real estate as strategic business driver and brand-enhancer


CHICAGO, Dec. 8, 2010 — Protecting and building the brand and driving responsible growth are the chief priorities of major retailers, according to an informal survey conducted by Jones Lang LaSalle at its  recent  Retail Executive Forum event. The survey also revealed that the retail industry is placing increasing importance on the value of real estate as a key component of its business and brand strategies. Weave in 2011.

Major retailers across a diverse cross-section of sectors including auto parts, entertainment, quick-service restaurants, and fashion were asked to disclose their key business priorities as well as their top corporate real estate challenges and opportunities.

The respondents indicated that protecting and building their brands and driving responsible growth were top business priorities. Ensuring aggressive cost reduction, winning the war for talent, and driving innovation were also listed as critical business concerns.  To address these issues, respondents were focusing on more thoughtful, deliberate real estate decisions that generate brand awareness, cut costs, drive customer satisfaction, and promote employee attraction and retention.

“Continued ambiguity within our business climate--coupled with unpredictable consumer demand, intense competition, and the rapid-fire development of new technologies--is creating extreme complexity within the retail landscape,” said Joe Brady, Managing Director of Jones Lang LaSalle Corporate Retail Solutions. “Retailers who balance the drive to innovate and grow with smart fiscal planning, staying true to their brand, and attracting and developing talent will be able to leverage the many opportunities today’s market presents.

“By more succinctly differentiating themselves via new product development, best-in-class customer service, integrated marketing, and market-leading innovation, retailers are building brand loyalty that will pay off with increased market share in years to come,” said Brady. “The top retailers also look to their corporate real estate teams to develop programs that serve their business models and optimize costs through smart occupancy planning and well-located real estate that supports the brand.”

The survey also asked retailers to identify their top corporate real estate challenges and opportunities. Developing long-range plans was listed as the top concern, followed by risk management, collecting and analyzing data, and adopting an appropriate CRE staffing model.

“Even though the rate of online shopping continues to increase, the retail industry understands that its real estate is one of its most brand-enhancing assets,” said Lew Kornberg, Managing Director of Jones Lang LaSalle Corporate Retail Solutions. “Leading-edge retailers are elevating their CRE function from the tactical approach of a decade ago to a high-level, strategic business solution platform that the C-suite can leverage to build the business.

“We are seeing more and more interest from retailers in integrating cutting-edge technology such as geospatial tools to more quickly and accurately identify the most strategic locations for all of their real estate requirements, including retail stores, administrative offices, warehousing, and R&D facilities,” added Kornberg. “To gain competitive advantage in a fiscally responsible way, retailers are also utilizing pop-up stores to test new concepts, implementing adaptive re-use to open new locations in a cost-efficient manner, and leveraging the tenant-friendly market to lock in attractive lease terms on existing or new locations.”

Jones Lang LaSalle’s 2010 Retail Executive Forum brought together retailers from some of the nation’s best known brands to discuss the latest trends and challenges facing the retail sector today.

Joel Kotkin, a recognized authority on global, economic, political and social trends, and author of THE NEXT HUNDRED MILLION: America in 2050, was the event’s keynote speaker and explored how the U.S. and its consumption patterns will evolve in the next four decades.  
 
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 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 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 approximately $40 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.