New Times Require New Strategies: How CRE is Keeping Up

Today, we are at a pivotal moment in the appraisal and commercial real estate industry. To survive, it is crucial to move away from the "old" or traditional ways of doing things and embrace the technology of today and its future implications.

Our team here at 仲量联行 has been at the forefront of this change, actively helping our clients prepare for success and investing in the future. What does this really mean? We are embracing evolution in real estate to position ourselves for the future.

In a recent conversation with my colleague, John Ahmed , Senior Managing Director in our Capital Markets business, we discussed the changes we are seeing in real time in commercial real estate and how JLL is staying ahead of the curve. Let's take a closer look at the transformation and how we see it playing out.

Embracing Technology

The commercial real estate industry has been notoriously slow in embracing change. We have relied on variations of the same technology for over 20 years, making minimal improvements for efficiency. However, now is the time for innovation and change.

Tony: To quote Steve Jobs, if Henry Ford had asked focus groups what they wanted, they would have said faster horses. But he had the vision to develop cars, and the rest is history. Similarly, the commercial real estate industry needs radical change. We must challenge every aspect of what we do, adopt cloud-based solutions, integrate with clients' technology, leverage AI, and utilize data efficiently. We can no longer rely on outdated tools.

John: I agree. And I think JLL has definitely embraced technology to a greater extent than some, if not many, of our competitors. We actively explore and integrate disruptive technologies, such as AI, in the commercial real estate space to enhance the service and edge our clients receive. We are always asking ourselves, “From a client-centric standpoint, how can we better use these technologies to the benefit of our clients?”?

Structural Transformation

Tony: The days of a geographic-led management structure are behind us. We must embrace a sector-led approach to organizational structure. Value and Risk Advisory at JLL has successfully revamped our organization, moving from geographic leadership to a national and global sector-led leadership model. This strategic decision sets us apart from our competitors and gives our clients unparalleled service and information.

Consider this - when you send an industrial job to an individual in Pittsburgh, their perspective is limited to that local viewpoint. On the other hand, sending the same job to JLL provides access to a global perspective and insights into the sector.?

John: We have seen the same trend in Capital Markets over the past decade as our clients seek a single, integrated service provider for all of their real estate needs. We have made changes to meet evolving demands and provide our clients with a single source solution. Now, I have the ability to seamlessly coordinate with my partners anywhere in the world to deliver real estate solutions for my clients. The majority of my clients are pure play real estate investment firms - developers, investors or owners - with assets all over the world. This gives the opportunity to collaborate with talented JLL teammates globally. We’re no longer limited to our local market or even one continent. If a client is making an investment outside of the U.S., we are able to seamlessly connect them with teammates in other regions with relevant local expertise. This approach just makes more sense for the clients and has been very effective for us.

Cultivating a Unique Culture

Tony: At JLL, our culture is unlike anything else. We prioritize our people and foster a culture of respect and support. Our employees and leadership embrace servant leadership, which is rare in the corporate world. We have inverted the traditional pyramid structure, with the leader supporting the team. Employees undergo training, work toward professional designations, and stay in tune with their markets instead of being confined to desks.

John: The JLL corporate culture is legit, for sure. Our commitment to creating a positive, collaborative culture sets us apart from our competitors. Some of the core values we hold most dear within Capital Markets are respect, excellence, hard work and integrity, so there is a lot of shared DNA when it comes to our professional values and the larger, corporate values within JLL.

Offshore Partnerships

Thanks to technology, we have virtual partners around the world. For instance, when you’re building a car, the pieces that make up that car are built in several places. As the consumer, you don’t necessarily care where they are built, you need reliability and an end product you can trust.

JLL has teams working collaboratively, utilizing technology to ensure efficiency and provide dedicated, sophisticated services to our clients. Our modeling team, for instance, sits in one central location, resulting in increased efficiency and superior service.

How JLL Can Help

Change is inevitable and should be embraced, rather than resisted. As a global company, JLL has access to cutting-edge technology that can help navigate this change. We have a proven track record of assisting and advising clients, empowering them to embrace new strategies.

Thank you for reading! We would love to hear your thoughts. Please feel free to leave a comment or share the article to continue the conversation!