Jones Lang LaSalle (NYSE: JLL) today announced that global bank HSBC has selected the firm as its sole global outsourcing provider of integrated facility management services across its 58 million ft² real estate portfolio. This is the largest facility management contract awarded to a single provider on a global basis by a financial services firm.
The practice of outsourcing non-core real estate functions to dedicated third-party experts has increased in recent years as service providers have attempted to expand their abilities to deliver consistent services across broader geographies and corporations have better understood the productivity benefits of outsourcing.
With its ability to deliver real estate services across such a large and diverse global portfolio, Jones Lang LaSalle is on the forefront of the global outsourcing trend. HSBC's pioneering decision to outsource facility management services worldwide is designed to increase operational efficiency and consistency across its 11,000-site portfolio throughout North America, Latin America, Asia Pacific, Europe, Middle East and Africa.
"Jones Lang LaSalle and HSBC are committed to introducing innovative solutions that advance the performance of real estate as a driver of measurable business improvements. Our global team is focused on improving the productivity of HSBC's real estate through operational efficiency across its global workplaces," said Colin Dyer, President and CEO, Jones Lang LaSalle.
Jones Lang LaSalle has been a real estate advisor to HSBC in North America since 1998. The contract adds more than 42 million ft² of real estate worldwide to Jones Lang LaSalle's responsibilities, and renews existing facility management services in North America, China, Thailand, Mexico and Panama. Jones Lang LaSalle also acts as one of HSBC's regional transaction partners, serving its Asia Pacific, Latin America and Middle East-North Africa regions.
To service this expanded program, Jones Lang LaSalle will implement its leading technology platform that allows HSBC to manage, compare and benchmark performance consistently across its global portfolio.
"As companies demand more consistency and control over their real estate facilities, they increasingly look for a single provider that can deliver on a global basis," said Jordi Martin, Managing Director of Integrated Facilities Management at Jones Lang LaSalle. "Being entrusted by HSBC to manage its facilities worldwide shows that this can be achieved and it is a reflection of our continued investment in building a world-class global facility management platform."
"As real estate is typically the third largest operating cost for companies, our ability to deliver more efficient real estate operations will benefit HSBC's overall productivity and business performance," said Bill Thummel, Jones Lang LaSalle's Managing Director, Global Accounts. "Our model of mixing a strategic management approach with extensive self-delivery and a commitment to supporting HSBC's sustainability goals allows HSBC to better focus on its core business."
"In EMEA, we will leverage our supply chain economies of scale to improve the performance of more than 4,000 HSBC facilities," said Magnus Akerberg, Managing Director, Integrated Facilities Management, Europe Middle East & Africa, Jones Lang LaSalle. "This contract will deliver consistency throughout HSBC's global locations."
Jones Lang LaSalle has formed an integrated global account team of experts led by Bill Thummel, along with Global Managing Director Chris Kiernan and Global Director of Operations Ian King, to serve the expanded global account responsibilities for HSBC.
A leader in the real estate outsourcing field, Jones Lang LaSalle's Corporate Solutions business helps corporations improve productivity in the cost, efficiency and performance of their national, regional or global real estate portfolios by creating outsourcing partnerships to manage and execute a range of corporate real estate services. This service delivery capability helps corporations improve bus