Jones Lang LaSalle Incorporated (JLL), a leading real estate investment trust (REIT), has recently extended its global strategic alliance with Procter & Gamble Co. (PG), one of the largest consumer goods companies in the world, by forging a new five-year agreement as its global commercial facilities service partner.
With the deal, Jones Lang has further cemented its strategic ties and reinforced the business relationship with Procter & Gamble that had originated in 2003, when the two companies joined together to pioneer service delivery approaches and technology-supported platforms to excel competitive pressure.
Under the terms of the new agreement, Jones Lang would provide integrated facility management, project development, construction management and strategic occupancy planning services for all the owned and lobal leased corporate facilities portfolio of Procter & Gamble, spanning over 60 countries across 6 continents including North America, South America, Europe, Africa, Asia and Australia.
Several positives weighed in favor of Jones Lang in outsmarting competitors in the race to be adjudged the best in its business by Procter & Gamble, including its unrivalled track record of superior service delivery, flexible global service model and dedication to using facilities and real estate investments as a competitive advantage for the consumer goods company.
That the two companies have already worked in tandem for over eight years to successfully achieve individual corporate goals by optimizing real estate investments also helped.
Going forward, in order to meet increased customer expectations and probably exceed them, Jones Lang has decided to focus on driving productivity and innovation at Procter & Gamble through real estate portfolio optimization, total workplace design, and advanced analytics.
This, in turn, is expected to augment the revenue of Jones Lang’s Corporate Solutions business, which primarily helps companies to form outsourcing partnerships with third-parties to manage and execute a range of occupier services, thereby improving their own productivity and profitability. The strategic alliance, therefore, is a win-win solution for both the participating companies.
Chicago-based Jones Lang provides corporate, financial and investment management services to corporations and other real estate owners, users and investors worldwide. A broad real estate product and service range, and extensive knowledge of domestic and international real estate markets enable the company to operate as a single-source provider of real estate solutions.
With about 200 corporate offices across the globe, Jones Lang operates in more than 1,000 locations in 70 countries. Jones Lang is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide.
LaSalle Investment Management, the company’s investment management business, is one of the largest and most diverse in the real estate sector with nearly $47.2 billion of assets under management.
Jones Lang continually invests in industry-leading research to identify emerging trends and anticipate future conditions to respond to the shifting market and business trends of its clients. This enables the company to develop new investment products and services tailored to the specific investment goals and objectives of its clients, thereby maintaining profitable long-term relationships during challenging market conditions. The company also has a strong balance sheet that provides it with an operating flexibility to protect and enhance market positions.
We maintain our Outperform recommendation on Jones Lang, which presently has a Zacks #1 Rank translating into a short-term Strong Buy rating.
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