Real Estate Marketing & Beyond
In investment news from Europe at least one Jones Lang LaSalle Inc. executive believes hotels are the coming boom in commercial real estate. Rising occupancy rates, and spiraling prices are on the short list of reasons the company's global hotel chief Arthur de Haast thinks hotel acquisitions may skyrocket. But, even more significant for 2011, the global industry appears headed for a huge, positive shift where productivity is concerned.
Intelligence, innovation and insight - Jones Lang LaSalle - the edge
According to de Haust, lodging purchases will gain 15 percent to 20 percent this year, or about $30 billion. And this volume of sales will not only be reflected across Europe, but in the Middle East and Africa as well. Speaking at the International Hotel Investment Forum in Berlin, de Haast added this:
“In 2011 we will see more deals with what we describe as secondary type assets."
While the executive admitted most deals last year occurred in the luxury sector, investors now seem poised to take even greater risks than before in what amounts to a vastly improving market. “Chinese insurance companies will buy Chinese hotels and Indian insurance companies will buy Indian hotels,” he said. Chicago based Jones Lang LaSalle, had $2.93 billion in revenue last year from just such speculative expertise, just so the reader knows. Colin Dyer, CEO of Jones Lang Lasalle, does not pick dinosaurs to fill these global positions.
Workspace Mobility as a component of productivity - where the industry is
And in other news from Jones Lang LaSalle, not only are some markets coming back strong, apparently the real estate industry in general is headed for something of a paradigm shift, at least in the way professionals do business. According to a recent report by LaSalle, outsourcing real estate is about to go mainstream. Some 70% of global companies surveyed said they would likely adopt hybrid delivery models by the year 2014. As the players emerge from this economic crisis, most of them desire and revamping of the delivery model.
While portfolio growth is almost assured this year, CRE peeps will be under extreme pressure to find new strategies to reduce cost and increase margins. Outsourcing to what may be called "Samurai" experts and consultants, may be one way the industry can shift in the right direction. You can view the survey yourself via this (PDF). The image (above), from that report, reveals how resondents felt about workspace mobility, just as an example of interest. We leave you with the latest report via Jones Lang LaSalle's Youtube Channel, which talks about the company's position.
