CHICAGO, IL--(Marketwired - Dec 8, 2014) - C-suite executives are often missing important insights from one significant corporate function -- their real estate, says a new study by Forrester Consulting, commissioned by JLL (NYSE: JLL). While marketing, cash flow, profitability and functional data are expertly funnelled to C-suite executives, there's a piece missing -- today's deeper and more sophisticated real estate data and analytics.
The independent study examines the unique potential of corporate real estate data to enrich data from other sources, such as HR, IT and finance, to effectively shape business strategies.
"Corporate real estate data and analytics enables companies to achieve competitive advantage by understanding and responding quicker to changing internal and external landscapes that impact business operations," said John Forrest, CEO of Corporate Solutions, JLL. "Quantitative and predictive real estate insights have the power to make companies more profitable. It's up to the C-suite to seize the opportunity."
The study, called Mind the data gap: aspiration vs. reality in corporate real estate, surveyed 392 corporate real estate executives across 11 countries and 10 industries. It reveals that, while 94 percent of companies have a formal corporate data and analytics strategy in place, the sophisticated use of real estate data remains in its infancy. Today, only 28 percent of corporate real estate teams consider themselves to be data-centric. This figure is set to double to 56 percent over the next three years.
Click here for an infographic summarizing the study.
"When you integrate space utilization, site selection and location metrics with information from HR, IT, marketing, finance and other departments, a company can fully understand its employee and customer behaviour," Forrest added. "Real estate data could be a powerful addition to help inform the C-suite on broader decisions such as location and workplace strategy. It can also provide clear insights into how corporate real estate impacts the employee and customer experience."
JLL advises three ways real estate data and analytics can make a difference:
1). Analyze real estate data and make more informed capital expenditure decisions. Better access to more sophisticated location data helps executives invest capital in the right projects and places. Decisions that improve efficiency and productivity are more likely to emerge when a company is able to integrate the right corporate real estate analytics with other information from HR, IT and other functions. The alignment with HR data, for example, is particularly powerful to prevent disruptive impacts of location changes on the workforce.
2). Deepen understanding of space utilization and improve employee collaboration and productivity. Many companies -- particularly those in professional services, manufacturing, and retailing -- are focused on workplace collaboration to generate value. This means being thoughtful about allowing employees to work from anywhere, while providing the right environments within facilities for in-person collaboration and innovation. New data from workplace sensors and mapping technology can help determine where employees need to be located and which environments work best.
3). Monitor facilities and optimize process performance. One way to obtain data: ask a building. Smart building systems generate enormous volumes of data and are becoming a reality for many corporations. The use of real-time smart building management and control software, when combined with analytics expertise, can reduce energy use (and cost), prevent disruptive equipment failure and maximize building performance.
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About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $53.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.