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SEC Filings

S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/03/1997
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  The Company intends to expand its Property Management and Leasing Services
unit through a combination of targeted marketing initiatives and acquisitions.
Based on its industry experience, the Company believes that its established
infrastructure and its reputation for high quality service make the Company an
attractive potential acquiror to many smaller local, regional and national
property management firms. The marketing efforts of the Property Management
and Leasing Services unit are directed toward pursuing new third-party
management assignments, expanding the Company's relationships with existing
clients and capitalizing on new business opportunities that may arise from the
Investment Management group's initiatives, such as implementation of its co-
investment strategy. As of March 31, 1997, more than half of the Company's
63.5 million square foot Property Management and Leasing Services portfolio
was composed of assets owned by unrelated third party clients and the
remainder was composed of assets managed for clients for which LaSalle
Partners also provided investment advisory services. The Company believes that
during the next several years, this business mix will become increasingly
weighted toward assets owned by unrelated third-parties, with a decreasing
emphasis on assets owned in the Company's existing investment funds, as many
of the commingled funds created by the Company in the 1980s reach maturity and
dissolution. See "Management's Discussion and Analysis of Financial Condition
and Results of Operations."     
 
  The Company's Property Management and Leasing Services are typically
provided by an on-site general manager and staff supported through extensive
regional supervisory teams as well as central resources in areas such as
training, technical and environmental services, accounting, marketing and
human resources. Property general managers assume full responsibility for
property management and leasing activities, client satisfaction and financial
results. Property Management and Leasing Services personnel are compensated,
not by fees or commissions, but through a combination of base salary and
performance bonus that is directly linked to results produced for clients.
 
  The Company typically receives fees based on the value of the lease revenue
commitment for leases consummated while it serves as exclusive property
leasing agent. Increasingly, management agreements provide for incentive
compensation relating to operating expense reductions, gross revenue,
occupancy objectives or tenant satisfaction levels. As is customary in the
industry, management contract terms typically range from one to three years,
but are cancellable at any time upon a short notice period, usually 30 to 60
days. However, on a portfolio basis, the Company's current average length per
management assignment is approximately four years.
 
  Facility Management Services. The Company's Facility Management Services
unit provides comprehensive portfolio and property management services to
corporations and institutions that outsource their real estate management
functions. The properties under management range from corporate headquarters
to industrial complexes, sales offices and data centers. Facility Management
Services professionals create working partnerships with each client to deliver
fully-integrated real estate services that are tailored to the specific needs
of each organization. Typically, performance measures are developed to
quantify progress made toward the goals and objectives that are set mutually
with clients. The Company's Facility Management Services unit also serves as
an important "port of entry" for the Company's other business units. Depending
on client needs, the Facility Management Services unit, either alone or
through the Company's other business units, provides services such as
portfolio planning, property management, leasing, tenant representation,
acquisition, finance, disposition, project management, development management
and land advisory services. In 1996, the Facility Management Services unit
generated revenue of approximately $13.6 million. Facility Management Services
relationships also generated revenue of approximately $12.8 million in 1996
for the Company's other business units.
 
  The Company was a pioneer in the facility management services business and
currently is one of the largest providers of facility management services in
the United States. The Company's target clients typically have large
portfolios (usually over one million square feet) with significant
opportunities to reduce costs and improve service delivery. At March 31, 1997,
the Company managed approximately 5,500 facilities, totaling more than 69
million square feet of space for eight clients. Representative clients served
in 1996 included Ameritech, BankAmerica Corporation and Sun Microsystems, Inc.
As a result of the merger of Galbreath with the Company, the Company assumed
management responsibility for facilities totaling 13 million square feet for
clients such as Eli Lilly and Company, The LTV Corporation and The Mead
Corporation. The Facility Management Services-
 
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