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SEC Filings

JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
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unit is also exploring new business opportunities with universities, health
care institutions, government agencies and other potential clients.
  The Company believes that the global corporate trend of outsourcing non-core
business functions represents an important long-term business opportunity for
LaSalle Partners. The Company believes that its broad-based service
capabilities will become an increasingly valuable competitive advantage in
pursuing Facility Management Services assignments. The Company believes that
its demonstrated experience, cost-cutting successes and client satisfaction
also provide it with an important competitive advantage. The Company has set
and consistently met its objective of cutting operating costs of its properties
under management between 10% and 30% within the first two years of the
assignment. In order to efficiently provide all services required to manage and
operate large facility portfolios, the Company forms partnerships with major
building services and architecture firms.
  The Facility Management Services unit is compensated on the basis of
negotiated fees, which are typically structured to include a base fee and a
performance bonus. The performance bonus compensation is based on a
quantitative evaluation of progress toward performance measures and regularly
scheduled client satisfaction surveys. Facility Management Services agreements
are typically three to five years in duration.
  Development Management Services. Active since 1975, the Company's Development
Management Services unit manages all aspects of the development, redevelopment
and renovation of commercial projects, principally on a fee basis. The Company
prepares projections, budgets, schedules and cash flows for its clients in
addition to undertaking entitlement, zoning and a variety of other development-
related responsibilities. All of the Company's current development business is
conducted for third-party clients, many of which are corporations with
significant office space needs. The Development Management Services unit
frequently manages development initiatives for clients of the Company's
Facility Management Services, Tenant Representation Services and Land Services
units, as well as for clients of the Company's Investment Management group
which are pursuing development-related investment strategies. In 1996, the
Development Management Services unit generated approximately $5.5 million in
  The Company has extensive experience in ground-up development in the office,
retail and institutional sectors and has completed more than 41 million square
feet of development and redevelopment projects for clients such as Capital
Cities/ABC, Inc., Duracell International Inc., McDonald's Corporation and The
Prudential Insurance Company of America. The Development Management Services
unit is currently managing the development of 17 projects totaling
approximately 4.5 million square feet nationally. Capitalizing on experience
gained in the redevelopment of Union Station in Washington, D.C., the Company
also specializes in mixed-use developments and is currently managing the
redevelopment of Grand Central Terminal in New York as a combined
transportation center and retail facility and the redevelopment of Orchestra
Hall in Chicago, Illinois.
  The Development Management Services unit generates development and advisory
fees. Fees are typically fixed and are negotiated based upon the cost of the
developments or improvements. Assignments are typically multi-year in nature.
  The Company's Corporate and Financial Services group provides transaction and
advisory services through three primary service capabilities: (i) tenant
representation for corporations and professional service firms ("Tenant
Representation Services"); (ii) investment banking services to address the
financing, acquisition and disposition needs of real estate owners ("Investment
Banking Services"); and (iii) land acquisition and development services for
owners, users and developers of land ("Land Services"). In 1996, the Corporate
and Financial Services group generated revenue of $46.7 million and operating
income of $10.8 million, representing approximately 27% of the Company's total
revenue and approximately 40% of the Company's total operating income.

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