|JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997|
[Bar graph depicting revenue for the Tenant Representation Services unit for the
Tenant Representation Services. First offered in 1978, the Company's Tenant
Representation Services unit assists clients by defining space requirements,
identifying suitable alternatives, recommending appropriate occupancy solutions
and negotiating lease and ownership terms with third parties. This unit also
includes the project management group which provides strategic occupancy
planning, field tenant improvement, project management and relocation
management to the Company's clients.
The Company seeks to lower its clients' real estate costs, minimize real
estate occupancy risks, improve clients' flexibility and occupancy control and
create more productive office environments. The Company uses a multi-
disciplined approach to develop occupancy strategies that are linked to its
clients' core business objectives. In 1996, the Tenant Representation Services
unit generated revenue of approximately $31.2 million, completing over 250
transactions for a total of approximately seven million square feet.
The domestic tenant representation industry includes a large number of
service providers offering a wide range of service quality and capabilities.
The Tenant Representation Services unit directs its marketing efforts toward
developing "strategic alliances" with clients whose real estate requirements
include ongoing assistance in meeting their real estate needs and also toward
clients who have the need to consider multiple real estate options and to
execute complex strategies. Based on marketing studies commissioned by the
Company and its industry knowledge, the Company believes that it is recognized
as one of the highest quality providers of tenant representation services in
the United States. Representative clients served in 1996 included Amoco
Corporation, Aon Corporation, R.R. Donnelley & Sons Company and Towers Perrin.
In many cases, the Company develops a strategic alliance with clients to
deliver fully integrated real estate services, including comprehensive on-going
strategic planning and transaction execution services across multiple office
locations. The Company views its strategic alliances as a competitive advantage
since these long-term relationships lower business development costs for the
Company and create recurring revenue sources. In 1996, approximately 79% of
Tenant Representation Services unit revenue was derived from strategic
alliances. Through these relationships, the Company gains a better
understanding of its clients' portfolio and occupancy requirements since the
same professionals service the client's needs nationwide. The Company believes
that these relationships enable it to deliver more consistent services and
better results than single-transaction, commissioned brokerage service
Responsibility for the national occupancy needs of strategic alliance clients
is assigned to dedicated client teams. These teams allocate resources to
address specific client requirements in markets throughout the United States.
The Company's Tenant Representation Services unit draws upon the resources and
local market knowledge of the Company's network of Property Management and
Leasing Services professionals located in over 300 property and other offices
in 31 of the largest markets in the U.S.
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