Print Page     Close Window     

SEC Filings

JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
Entire Document
  In addition to its strategic alliances, the Company also represents clients
in large, complex transaction assignments that typically involve relocations of
headquarters facilities or major consolidations of offices. In such
assignments, the Company draws on other capabilities of the firm to enable
clients to consider development of new facilities, weigh the benefits of
purchase or lease decisions and evaluate long-term financing options.
  The Company distinguishes its tenant representation services from those of
its competitors in several ways. The Company's Tenant Representation Services
professionals are recruited on the basis of strong educational credentials and
broad business experience, with approximately 90% holding Master of Business
Administration or other advanced degrees. In addition, in contrast to the
Company's major national brokerage competitors, the Company's Tenant
Representation Services professionals do not earn commissions, but are
compensated by means of a base salary and performance bonus that is determined
by their contribution to achieving predetermined client performance objectives.
  The Tenant Representation Services unit uses state-of-the-art computer
technology, including proprietary software developed by the Company, to improve
productivity and enhance client service. For example, it has created an on-line
lease analysis/negotiation program that enables users to scan in a lease from a
third party, and then compare lease language in each section against a database
of "best-practices" lease language drawn from previous engagements.
  The Company is generally compensated for Tenant Representation Services on a
negotiated fee basis. Although fees are generated by lease commissions, they
are often also determined by performance related to targets set by the Company
and the client prior to the Company's engagement and, in the case of strategic
alliances, at annual intervals thereafter. Quantitative and qualitative
measurements assess progress relative to these goals, and the Company is
compensated accordingly, with incentive fees often awarded for superior
  Investment Banking Services. Active since 1968, the Company's Investment
Banking Services unit is engaged in real estate finance, portfolio advisory
activities, corporate finance and institutional property sales. In 1996, the
Company completed institutional property sales, debt financings, equity
financings and portfolio advisory activities on assets and portfolios valued at
approximately $4.9 billion. The Investment Banking Services unit generated
revenue of approximately $6.7 million in 1996.
  The Company believes that its Investment Banking Services unit has a number
of competitive strengths, including its broad accumulated base of real estate
investment banking knowledge and an ability to draw on the Company's access to
global capital sources. The Company's Management Services group and Investment
Management group are valuable resources for the Investment Banking Services
unit in providing local market and property information and capital markets
  The Investment Banking Services unit is integral to the business development
efforts of the Company's other business units by researching, developing and
introducing innovative new financial products and strategies. Such efforts have
included the development of the Company's hotel investment capability and its
commercial mortgage backed securities operation, both of which are currently
operated within the Company's Investment Management group.
  In 1996, approximately 61% of the Company's Investment Banking Services
assignments represented repeat business from its clients. In addition,
approximately 54% of Investment Banking Services revenue represented fees
derived from sales of assets for clients for which LaSalle Partners also
provides investment management services. Representative clients served in 1996
included ENRON Corp., Equifax Inc., G.E. Investment Corp. and Sumitomo Trust &
Banking Co., Ltd.
  The Company is typically compensated for Investment Banking Services on the
basis of the value of transactions completed or securities placed, but in
certain circumstances the Company receives retainer fees for strategic advisory

© Copyright Jones Lang LaSalle, IP, Inc.