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SEC Filings

S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
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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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