Top CRE Trends 2021 Corporate Solutions - JLL
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Top 10 global CRE trends in 2021
01 02 03 04 05
Hybrid future Humanizing workplace Health imperative Digital first Race to net zero
Work from anywhere will Next-gen workplaces Employee health and Technology enables CRE will be critical in
drive footprint dispersion will create environments wellbeing will be central everything. Develop digital achieving enterprise net
and portfolio transformation where people thrive and to future CRE strategy capabilities to drive value zero targets
performance flourishes and investment for employees and
customers using technology
as the enabler
06 07 08 09 10
Responsible real estate Distributed urbanization Flex transformation Future of metrics Resilience
Commitment to bring a Demand for a more Flex space will be a key New metrics and insights Always-on
positive change through sustainable and resilient strategic tool to drive will enhance data driven transformation will
real estate will be at the urban model will result in portfolio agility post-Covid portfolio and enable the require an always-on
forefront of CRE strategy the changing spatial logic future of work resiliency
in 2021 of citiesHybrid future
Workers are eager for more flexibility Remote work frequency after COVID-19:
2.4 days a week on average
Choosing my working hours,
having flexible schedules
71%
Distributed and digitally 26%
Switching to a 4-day working
enabled workplace model week, with 1 day available for my 74%
Exclusively outside
Mostly remote work
free time of the office
+ No office sites
While at my office, being able to
choose the most suitable 57%
workspaces according to my tasks
Living far away from the city and 50% Hybrid
going to the office only when 57% Partially remote work
Office + Remote + Large HQ a/o multiple
necessary
hubs a/o multiple micro-
Not coming to the office anymore,
thanks toa permanent remote- 52% hubs, flex spaces
working arrangement
Working from a coworking facility
24%
close to my home, at least 1 day a 43%
week Exclusively
in the office Limited remote work
Appealing + Large HQ
Work from anywhere
Q: Some companies are providing new flexibility options to their Q: How many days a week would you like to work remotely
will drive footprint employees. How appealing are they to you? Sample : All respondents n= 2033 from home after COVID-19? Sample : All respondents n= 2033
Source: JLL, Human Experience, 2020 Source: JLL, Human Experience, 2020
dispersion and portfolio
transformation
Explore hybrid workplace mobility for greater future resiliency
2Humanizing
workplace
The office is the preferred location for some crucial activities
To learn and grow
Creating a worker-centric 52% 42% 6% Performance enablers*
workplace To socialize
Spaces
#1 Creative spaces
60% 21% 19% #2 Learning & Development spaces
#3 Coworking spaces
To solve work-related issues
#4 Outdoor spaces
69% 28% 3% #5 Privacy spaces
To collaborate and run meetings Tech
70% 24% 6% #1 Social networks
#2 Learning & Development tools
To manage or be supported by your management #3 CRM tools
#4 Business Intelligence tools
70% 26% 4%
#5 Project Management tools
Next-gen workplaces Better in the office Better at home Better in a third-party place
*Spaces & technologies which have the
will create Q: After your recent homeworking experience, where would you prefer to
greatest impact on performance among High
Performers compared to other groups
do the following tasks in the future? At home, in the office or in a third-
environments where party place? Sample: All respondents n=2033
Source: JLL Human Performance (2020)
Source: JLL Human Experience (2020)
people thrive and
performance flourishes
Enable human performance by reimagining your workplace and
creating positive environments in partnership with HR and IT 3Health
imperative Top 5 services expected by employees post pandemic
49% Well-being services 39% 34%
of employees are unable to Advanced food services 38% 34%
Renewed focus on
switch off after a demanding
employee health and Health services 37% 34%
task at the office
wellbeing Sports services 38% 24%
Source: JLL, Human Performance (2020)
‘Life is easy’ services 40% 20%
Mobility solutions 37% 21%
Service desks
58% dedicated to work
Cultural services
38%
37%
17%
15%
of employees prioritize
working in a company that Beauty services 35% 16%
ensures their physical and
mental well-being Childcare services 26% 17%
Employee health and Source: JLL, Human Experience (2020) This would be nice This would be wonderful
wellbeing will be Q: What kind of services would you delight in having access to?
Sample : All respondents n= 2033
central to future CRE Source: JLL, Human Experience (2020)
strategy and
investment Develop a robust health and wellness program to care for the
workforce and address the impact on mental health and fatigue and
support employee health 4Digital first
59% of executives say COVID-19
has accelerated digital 5
1
Dynamic, interconnected transformation at their
ecosystem of partners and organizations
Apps Devices
technologies Source: IBM, COVID-19 and the future of business
(2020)
68% of corporates cite forging Digital
innovation partnerships as a core Transformation
priority for the next 12 months. 4
Source: EY, Tech Horizon: Six habits of digital Collaboration Access
2
transformation leaders (2020)
Technology enables 40% of CEOs said their CIO or
Data
everything. Develop tech leader will be the key driver of
business strategy—more than the
digital capabilities to CFO, COO, and CMO combined.
3
drive value for employees Source: Deloitte, The new CIO: Business-savy Any Device – Any App – Any Data
Anywhere – Anytime
and customers using technologist (2020)
Source: JLL Research (2020)
technology as the enabler
Harness the power of digital ecosystems to accelerate
transformation of work, your workforce and the workplace 5Race to
net zero Global commitments to net zero Every CRE decision within the property
double in less than a year lifecycle should consider net zero carbon
Cities and regions with a carbon footprint
Decarbonization of greater than the emissions of the US and
real estate companies with a combined revenue of Adopt
Occupy or
more than $11.4tn are now pursuing net acquire net sustainable
zero goals. zero carbon design principles
buildings through and specifications
This now includes 22 regions, 452 cities, sustainability when looking to
1,101 businesses, 549 universities and appraisal/due develop, refurbish
45 of the biggest investors. diligence or fit-out assets
Source: Data-Driven EnviroLab & New Climate Institute,
Accelerating Net Zero (2020)
Manage assets towards
40% of global greenhouse gas a net zero carbon by optimizing a
emissions come from buildings and, if building e.g. lighting upgrades;
left unchecked, they're set to double HVAC replacement, digital
by 2050. Buildings account for a third technology
CRE will be critical in of global energy consumption
achieving enterprise Source: theclimategroup.org;
Source: JLL Research (2020)
net zero targets
Accelerate adoption of net-zero strategies across
CRE portfolios and full real estate life cycle 6Responsible “Responsible real estate calls for a systemic change driven
Real Estate by a holistic view of the industry and its approach to the
development and management of real estate.”
Source: Bloomberg Green, JLL (2020)
Reimagining a better world
through the built JLL’s Responsible Real Estate Framework
environment Promote fulfillment through
Avert climate change and
replenish Earth’s resources spaces and experiences
Increase resilience of people, Purposeful places where
places and communities diverse and collaborative
cultures and communities
thrive.
Commitment to bring a
positive change through Create smart, digitally
Deliver authentic places
where people feel a true
real estate will be at the connected environments
sense of belonging
forefront of CRE strategy
Source: JLL Research, 2020
in 2021
Leverage built environment to bring positive and sustainable change
that fosters health and prosperity of people and planet 7Distributed "The cores of our cities will be reimagined to reflect their changing role
Urbanization in the urban ecosystem. They will re-emerge as hubs of innovation,
collaboration and interaction"
Source: JLL Global Cities Research (2021)
The hyperconnected city region
The rise of polycentric city
72% of employees prioritize having a
great work-life balance, spending
more time with their families
Source: JLL, Human Experience (2020)
57% of employees prioritize commuting
less, working and living locally and
consciously
Source: JLL, Human Experience (2020)
Demand for urban last-mile delivery is
expected to grow by 78% by 2030
Source: WEF, The Future of the Last-Mile Ecosystem (2020)
Demand for a more
sustainable and resilient Due to value chain disruptions, companies can
expect losses equal to almost 45% of one
urban model will result year’s profits over the course of a decade.
in the changing spatial Source: McKinsey, Risk, resilience, and rebalancing in global value
chains (2020) Source: JLL, The Business of Cities (2020)
logic of cities
Align location strategy with the evolving spatial logic of cities and
build sustainability and resilience into your property portfolio 8Flex
transformation
Future corporate demand Flex operator consolidation
33% of CRE directors globally say 2020 leasing by flex operators was down -
Evolution of flex the use of coworking / flex space 82% y-o-y.
will increase post-Covid.
2021 will see market consolidation on the
Source: JLL, Reimagination Pulse Survey (2020)
back of ongoing business failure, locations
closures and M&A activity.
Source: JLL Research (2020)
Product innovation
On-demand space, corporate memberships and spec suites/ plug & play models will
Flex space will be a rise in importance as corporate demand flexibility and little capital expenditure.
key strategic tool to Source: JLL Research (2020)
drive portfolio
agility post-Covid
Incorporate flexspace into your portfolio in response to
shifting work preferences. 9Future-proof
metrics 70% of metrics that companies adopt in the next three years will be non-traditional
Source: JLL, Metrics that Matter (2019)
Forward-looking,
Future state metrics will focus on: Attributes of future state metrics:
transformation-oriented
metrics Human ✓ Continuous, real time data collection
Performance ✓ A mix of past, present and future measures. Including
forward-looking, anticipatory, predictive ones.
✓ Responsive, agile, adaptable
✓ Metrics harness varied data and advanced analytics
Portfolio ✓ Encompasses a broad range of financial and non-
financial measures
✓ Aligned with strategic aims and objectives
✓ Metrics based on the needs of employees and other
New metrics and insights stakeholders as well shareholders
Responsible
will enhance data driven ✓ Consistencies achieved with standardized metrics
real estate and clear data governance practices
portfolio and enable the
future of work
Build a metric-driven culture to empower data driven decision
10
making in real timeResilience
42% of employees report their company 87% of executives will prioritize
wants to promote a resilient enterprise – enterprise agility over the next two years
Being adaptive, agile able to innovate and adapt to future crises Source: IBM, COVID-19 and the future of business (2020)
and responsible Source: JLL, Human Experience (2020)
The Reimagine framework to shape the future of work Accelerating
the digital transformation &
technology enablement
Business People Workplace CRE
strategy strategy strategy strategies
Always-on
Reimagining
transformation will
require an always-on Source: JLL Research, 2020
Adaptive & resilient,
sustainable & responsible
resiliency
Build a high level of elasticity into your CRE strategy to
adapt to continuous shifts in demand 11Thank you Richa Walia Tom Carroll ? James Taylor Director, Corporate Research, EMEA Head of Corporate Research, EMEA Head of Corporate research, APAC + 44 (0)20 3147 1861 + 44 (0)20 3147 1207 +6281283158937 richa.walia@eu.jll.com tom.carroll@eu.jll.com james.taylor@apac.jll.com David Barnett Christian Beaudoin Marie Puybaraud Director, Corporate research Americas Head of Corporate research, Americas Global head of Corporate research +1 760-828-2116 +1 312-228-2020 +33153816424 david.barnett@am.jll.com christian.beaudoin@am.jll.com marie.puybaraud@eu.jll.com © 2020 Jones Lang LaSalle IP. Inc. All rights reserved.
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