Top 10 Global CRE Trends 2018
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Top 10 Global CRE Trends 2018 ©JLL 2016 1
Top 10 Global CRE Trends in 2018
Dynamic workforce Flexspace Innovation culture Digital drive Smart real estate
Liquid and contingent The proportion of flexspace New collaboration Integrated technology Smart real estate
workforce is driving a within CRE portfolios will imperatives are and ecosystems will technology is transforming
radical transformation of continue to grow in 2018 changing corporate drive new levels of the real estate life cycle
corporate real estate innovation infrastructure enterprise performance
Adaptive organization Future skilling Wellness Humanization Community
Nurture an agile culture and Adapting team Support mental and Create workplaces Buildings to become
workplace against the competencies to meet physical health at work by that are people an epicentre for
backdrop of market and future CRE challenges aligning workplace and orientated, experiential communities to share
digital transformation HR strategy and personalized passions, experiences
and ideas
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 2
Portfolio Career Liquid workforce
Between 20% and 30% of the working
population is already working in the
on-demand or gig economy.
80% 60% Source: McKinsey (2016) Independent Work: Choice, Necessity
and the Gig Economy
Coworking
of all employees during of the workforce nowadays ofFlexible working Workplace utilization
About 30-40% of space is under-utilized of a
typical workday.
of employees work from home at
54% least once a month.
Source: JLL (2017) Occupancy Planning Annual Report
Supply side growth
of employees say access to No. of coworking spaces worldwide
external coworking spaces has a 16,000
13,800
>60% positive or a very positive impact 14,000
on their engagement and 12,000 11,300
Coworking and flexible productivity at work. 10,000 8,700
workspaces
8,000
5,800
of employees work at least once a 6,000
3,600
month from third places such as 4,000
2,070
The proportion of flexspace 34% internet cafes, public libraries or 2,000 1,130
within CRE portfolios will coworking spaces. 0
2011 2012 2013 2014 2015 2016 2017
Source: JLL (2017) Workplace Powered by
continue to grow in 2018. Human Experience Source: Deskmag (2017) Coworking Survey
Incorporate flexspace as a core part of workplace and portfolio strategy
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 4Operating models for innovation Cross-collaboration
Open innovation 61%
of CEOs plan to enter new
Design thinking 59%
strategic alliance or joint venture.
Co-creating with customers,
partners, suppliers 55% 48% Source: PwC (2017) 20th Annual CEO
Survey
Traditional R&D 34%
Innovating in emerging markets,
exporting to developed markets 34%
Taking risks, failing fast, trying
again 31%
Internal incubators 27% Open Innovation
A work environment supporting
Investing in start-ups via
creativity, cross-collaboration corporate venture capital 21% of large companies stated that
and innovation open innovation is important or
critical to higher levels of future
Q: What operating models does your organization currently use
to drive innovation? (% denotes the number of companies using
97% business performance.
New collaboration these innovation models)
Source: Accenture (2017) Building a Digital
Base: 1,222
Ecosystem: Collaborate for Growth
imperatives are changing Source: PwC (2017) Innovation Benchmark
corporate innovation
infrastructure.
Review innovation infrastructure to foster hyper-collaboration within
and outside the organization
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 5Digital drivers IoT investment
To meet changing
80% 1,000 832
customer expectations
IoT investments by businesses
are projected to grow dramatically
$M
To improve operational 500
efficiency
52% 215 over the next few years.
Source: PwC (2017) Leveraging the Upcoming
0 Disruptions From AI and IoT
To reinvent business /
47% 2015 2020
operating model
To create new products
41%
or services
Harness digitization AI Investment
0% 20% 40% 60% 80% 100%
and rich data of executives report they will
Why companies feel the need for digital transformation? invest extensively in AI-related
(Survey of leaders responsible for digital transformation technologies over the next
initiatives). 85% three years.
Integrated technology and
Source: Accenture (2017) Technology Vision
ecosystems will drive new
Source: Nimbus Ninety (2017) Digital Trends Report
levels of enterprise
performance.
Align CRE strategy with enterprise-wide digital transformation
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 6Technology partnerships Return on investment
of real estate decision makers
agree with the statement
“Traditional real estate
89% organizations need to engage with
PropTech companies in order to
adapt to the changing global
environment.”
81%
Digitally enabled of real estate decision makers
real estate expect to collaborate with an
existing or new supplier to
develop their technological of occupants report that smart buildings
49% innovation capability. improve employee retention.
Smart real estate Source: KPMG (2017) Bridging the gap, Global Source: BPIE (2017) Smart Buildings Decoded
PropTech Survey
technology is transforming
the real estate life cycle.
Deploy emerging smart real estate solutions to optimize user-experience
and enhance enterprise performance
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 7Drivers Agility
Why businesses should improve agility? of companies report that “agility
Management-level executives rated the top and collaboration” are critical to
reasons for improving agility. their organization’s success, yet
94% only 6% say that they are “highly
believe the capability to
respond more quickly to new agile” today.
84% opportunities will give them a Source: Deloitte (2017) Global Human Capital Trends
distinct advantage.
Key obstacles to digital transformation
Lack of properly skilled teams 63%
Responsiveness to a rapidly 65%
expect higher customer
changing operating satisfaction and retention. Outdated technologies 61%
Lack of integration of new and existing
environment technologies and data
59%
Inflexible or slow processes 42%
expect higher employee
Nurture an agile culture 58% productivity and retention.
Lack of collaboartion between IT and
business
35%
and workplace against the
Source: CA Technologies (2017) The State of Business Agility What’s stalling digital transformation efforts?
backdrop of market and Source: PwC (2017) Global Digital IQ Survey
digital transformation.
Embed agility in the organization to seize new opportunities and respond to
a volatile operating environment
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 8Changing profiles Talent strategy
Top approaches to get sufficient talent to
support business strategy:
of HR professionals say that
skills needed for jobs in their
65% organization are changing. 59%
Source: CIPD / Hays (2017) Resourcing and
Talent Planning Survey
52%
51%
Rethinking skills base and Retrain or redesign
profiles
of companies will either retrain
people to use technology or will
77% redesign jobs to better take Develop and Recruit new Hire contractors
Adapting team advantage of human skills. train existing employees and consultants
employees
competencies to meet Source: Deloitte (2017) Global Human Capital
Source: Deloitte (2017) Digital Business Global Executive Study
Trends
future CRE challenges.
Consider new and atypical profiles to drive the future of your organization
and enhance CRE performance
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 9Current state Desired state
Only about 9.5% of today’s workforce is covered by Switching off Happiness
any kind of workplace wellness programs or services. and meditation at work
Source: Global Wellness Economy Monitor, GWI, 2017
Accoridng to WHO, by 2030 the largest health risk on 25% 69%
earth will be depression. The global economic impact
of mental health is estimated at US$ 1 trillion per year
in lost productivity. What criteria would give you the feeling of having a unique
experience of work?
Source: WHO (2017) Global Wellness Summit
Source: JLL (2017) Workplace Powered by Human Experience
Being in good health as an
actively pursued goal
Wellness Architecture
Indoor air International
Thermal Daylighting Noise and
quality and layout and
comfort and lighting acoustics
ventilation active design
Support mental and Location and
Biophilia and Look and Employee
physical health at work by views feel
access to
engagement
amenities
aligning workplace and
Source: WGBC (2016) Building The Business Case: Health, Wellbeing and Productivity in Green Offices
HR strategy.
Create a new wellness architecture to activate and sustain human experience
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 10Automation Humanization
In the period 2018-2020 the expected Only 22% of executives reported that their
annual growth rate of sales in service companies were excellent at building a
robots for professional use is expected to differentiated employee experience.
Reintroducing the human factor between 20% and 25%. Source: Deloitte (2017) Digital Mobility | Talent 2017 Trends
at the core of the enterprise Source: International Federation of Robotics (2017)
World Robotics
Create workplaces that
are people orientated,
experiential and
personalized.
Enhance human experience while building on the potential of
automation and digitization
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 11Building trust Impact on employees
61% 58%
of CEOs say building greater trust among external report a positive impact on engagement and
stakeholders and customers is a top three priority for productivity.
their organization today.
A network of
Source: KPMG (2017) Global CEO Survey
interdependent individuals Does access to spaces for shared community interests
(vegetable gardens, spaces for artistic expression, spaces for
leaving pets, etc.) have an impact on your engagement with the
company and productivity?
Buildings to become an Source: JLL (2017) Workplace Powered by Human Experience
epicentre for communities to
share passions, experiences
and ideas.
Meet community aspirations by seamlessly connecting people and creating
comfortable spaces
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Menu 12Dynamic workforce Flexspace Innovation culture Digital drive Smart real estate
Liquid and contingent The proportion of New collaboration Integrated technology Smart real estate
workforce is driving a flexspace within CRE imperatives are changing and ecosystems will drive technology is
radical transformation of portfolios will continue to corporate innovation new levels of enterprise transforming the real
corporate real estate grow in 2018 infrastructure performance estate life cycle
Adopt a user-centric Incorporate flexspace as a Review innovation Align CRE strategy with Deploy emerging smart
approach to respond to core part of workplace and infrastructure to foster enterprise-wide digital real estate solutions
a dynamic workforce. portfolio strategy. hyper-collaboration transformation. to optimize user-
within and outside experience and enhance
the organization. enterprise performance.
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 13Adaptive organization Future skilling Wellness Humanization Community
Nurture an agile culture Adapting team Support mental and Create workplaces that Buildings to become
and workplace against competencies to meet physical health at work by are people orientated, an epicentre for
the backdrop of market future CRE challenges aligning workplace and experiential and communities to share
and digital transformation HR strategy personalized passions, experiences
and ideas
Embed agility in the Consider new and atypical Create a new wellness Enhance human experience Meet community
organization to seize profiles to drive the future of architecture to activate and while building on the aspirations by
new opportunities and your organization and sustain human experience. potential of automation seamlessly connecting
respond to a volatile enhance CRE performance. and digitization. people and creating
operating environment. comfortable spaces.
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 14Report contact: JLL research leads: Richa Walia Tom Carroll Susan Sutherland Christian Beaudoin Marie Puybaraud Senior Research Analyst, EMEA Head of Corporate Research, EMEA Head of Corporate Research, Asia Pacific Head of Corporate Research, Americas Global Head of Corporate Research +44 (0)20 3147 1861 +44 (0)20 3147 1207 +65 9771 7938 +1 312 228 2020 +33153816424 Richa.Walia@eu.jll.com Tom.Carroll@eu.jll.com Susan.Sutherland@ap.jll.com Christian.Beaudoin@am.jll.com Marie.Puybaraud@eu.jll.com © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall b e used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent ne cessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.
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