|JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997|
. Geographic Reach. With 10 corporate offices and over 300 property and
other offices throughout the United States, LaSalle Partners possesses
in-depth knowledge of local markets and can provide its full range of
real estate services throughout the country. In addition, the Company's
four international offices give the Company the ability to serve its
clients' needs in key international markets. The international offices
also serve as the platform from which the Company will expand its
. Reputation. Based on its industry knowledge, commissioned marketing
surveys, industry publications and number of long-standing client
relationships, the Company believes that it is widely recognized by large
corporations and institutional owners and users of real estate as a
provider of high quality, professional real estate services and
investment management products. The Company believes its name recognition
and reputation for quality services are significant advantages when
pursuing new business opportunities.
. Experienced Management/Employee Equity Incentives. The Company's senior
management team has an average of approximately 18 years of experience in
the real estate services industry and, with the exception of Lizanne
Galbreath who joined the Company on April 22, 1997 in connection with the
Galbreath merger, has been with LaSalle Partners for an average of
approximately 16 years. The Company uses equity-based incentive
compensation and bonus plans and minimum stock ownership guidelines to
foster employee commitment and align employee and stockholder interests.
Following the Offering, the Company's senior management team will
indirectly own approximately 21.4% of the outstanding Common Stock and
total employee ownership will be approximately 47.5%.
The real estate services industry is emerging from the severe downturn in
the real estate markets in the early 1990s. Strong improvements in commercial
real estate fundamentals--supply, demand, vacancy and rental rates--have
contributed to increased property values. The Company believes that the
recovery of the real estate markets and the trends described below provide
growth opportunities for the Company.
The real estate services industry is highly fragmented. For example, the top
10 property managers (based on square footage) manage less than 4% and the top
50 property managers manage less than 7% of the 61 billion total square feet
of commercial property (industrial, office and retail) located in the United
States. Many large real estate service firms engaged in the property
management business, including the Company, believe that, as a result of
substantial existing infrastructure investments and the ability to spread
fixed costs over a broader base of business, it is possible to recognize
incrementally higher margins on property management assignments as the amount
of square footage under management increases. The advantages of scale in the
property management business, including the ability to provide higher quality
service at a lower cost to the user, has led to a significant consolidation
trend among real estate service providers.
In addition, large users of commercial real estate services have recently
demonstrated a desire to use a smaller number of real estate firms capable of
providing a full range of services across multiple geographic markets. The
ability to offer a full range of services requires significant corporate
infrastructure investment, including information technology and personnel
training. Smaller regional and local real estate service firms, with limited
resources, are less able to make such investments.
GROWTH OF OUTSOURCING
In recent years, outsourcing of professional real estate services has
increased substantially as corporations have focused corporate resources,
including capital, on their core competencies. In addition, public and other
non-corporate users of real estate, such as government agencies and health and
educational institutions, have begun outsourcing real estate activities as a
means of reducing costs. As a result, there are significant growth
opportunities for firms that can provide integrated real estate services
across many geographic markets.
© Copyright Jones Lang LaSalle, IP, Inc.