JLL: C-suite metrics are missing corporate real estate data and analytics

by Brianna Crandall — December 19, 2014—C-suite executives are often missing important decision-making insights from one significant corporate function—their real estate, says a new study by Forrester Consulting, commissioned by global commercial real estate services firm JLL (Jones Lang LaSalle). While marketing, cash flow, profitability and functional data are expertly funneled to C-suite executives, the research found 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 human resources (HR), information technology (IT) and finance, to effectively shape business strategies.

By 2017, 56% of CRE executives expect to use data and analytics to shape most decisions.
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“Corporate real estate data and analytics enables companies to achieve competitive advantage by understanding and responding more quickly 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 (CRE) 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 CRE teams consider themselves to be data-centric. This figure is set to double to 56 percent over the next three years.

“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 behavior,” 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.

JLL is a global professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. 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.