SINGAPORE, 4 August 2010 – The rising trend for companies to outsource the management of their real estate facilities in Asia Pacific has translated into significant growth for Jones Lang LaSalle’s Integrated Facilities Management (IFM) business in the region.
Jordi Martin, Managing Director of IFM for Jones Lang LaSalle in Asia Pacific said that the firm has strategically geared the business to meet the demand from clients as the outsourcing of corporate real estate takes hold in the region.
“Our facilities management business has grown significantly over the past three years, and we now have 130 clients, more than 160 million sq ft of space under management, and over 4,200 employees in Asia Pacific. In the first half of 2010, we increased our space under management by 15%, adding over 20 million sq ft to our portfolio across Asia Pacific,” said Mr Martin.
Jones Lang LaSalle’s Property and Asset Management business also manages an additional 575 million sq ft of space on behalf of owners and investors across the region.
In a strong start to 2010, Jones Lang LaSalle won its biggest ever corporate contract in Asia Pacific when Telstra, Australia’s leading telecommunications company, awarded a long-term contract to manage their portfolio of 27 million sq ft across 14,000 sites in Australia with operational management for 10 million sq ft of space.
Mr Martin said, “We have also been appointed by a major global investment bank to manage their 3.6 million sq ft of space across the region and we have just finalized a contract with a major global retail bank to manage their 2 million sq ft Asia Pacific portfolio.”
Facilities management is a core component of Jones Lang LaSalle’s Corporate Solutions business that delivers integrated corporate real estate solutions to corporations across the globe.
“We were one of the first to establish an integrated facilities management business in Asia, back in the late 1990’s, and since then it has become a proven business model that has been adopted by many multinational corporations in the region. The early adopters of outsourcing were the financial services, technology and telecommunications companies and these continue to make up the majority of our client base. Today, we manage more than 45 million sq ft of space for banking and finance clients in Asia Pacific – this represents some 75%-80% of outsourced facilities management in this sector,” said Mr Martin.
As the benefits of facilities management outsourcing become more widely recognized in Asia Pacific, new outsourcing sectors are emerging, including industrial users like manufacturing and pharmaceutical companies, and sectors such as airports and healthcare.
“What we are starting to see now is that a number of the big investment banks are outsourcing the management of their facilities for the first time,” said Mr Martin.
“The industrial sector’s outsourcing potential is also high and momentum is expected to grow rapidly in Asia, as there is significant scale of operations in key markets like India, China, Singapore, Thailand, Vietnam and Japan. As these companies grow, they will increasingly require specialised FM skills in order to drive financial and operational efficiencies,” he added.
Countries like China and India offer potential growth opportunities for companies based in Australia, Europe and North America to expand into Asia. These companies are likely to outsource the facilities management of their Asian operations, expecting to be able to achieve the same standard that they are used to in their own countries.
The potential for more Asian companies to embrace outsourced facilities management is also huge, including in the area of government outsourcing, which is already common in Australia.
As a global leader in real estate outsourcing, Jones Lang LaSalle is making investments in its regional platform to ensure delivery of high quality services, best practice and innovation to its clients across Asia Pacific.
For example, Jones Lang LaSalle introduced the first, dedicated Supply Chain Management solution for real estate, returning significant savings to its regional client base. The Firm also boasts an industry leading Critical Environment Management team, which is responsible for the day-to-day operation of 2.7 million sq ft of critical space, such as data centres, for more than 54 clients across the region.