Colin Dyer
Chief Executive Officer
Jones Lang LaSalle
Hello from Davos, Switzerland, where I’ll be spending Tuesday through Sunday at the World Economic Forum, which is held here each year. This is my third visit, and the second with Jones Lang LaSalle.
The Forum brings together 2,500 business, government and public-sector leaders from around the world into one cramped convention centre and lots of crowded hotels, to discuss events, conditions and social issues impacting the global economy.
Why am I taking time to participate? It’s a very efficient way to meet with clients and prospective clients at a senior level. It reinforces the firm’s visibility to senior clients. And we are the only major real estate services firm here, so we’re able to lead on issues – such as global real estate market conditions, real estate finance and sustainability in buildings – to a global audience of business and public leaders.
And in between, there’s the opportunity to get some feel for the big questions of the moment:
- If we’re through the recession, what comes next?
- How will governments regulate the financial system?
- How will governments fix their own finances?
- Implications of the big power shift from west to east?
I’ll try to draw some implications for real estate, the firm and our clients. We’ll see what indications we get by Sunday.
Here are some first impressions, from the bus, the book line, the attendee list and the first evening’s events:
- The U.S. government, absent in 2009, seems to be back this year.
- The same story goes for the banks, who mostly stayed away in ‘09 (expense control and concern at being scolded!), but are back in good numbers.
- And there are clearly more Indian and Chinese companies attending.
The general mood of attendees last year was somewhere between “controlled fear and cautious pessimism.” So far this time, the mood feels “cautiously optimistic.”
The Forum’s theme has changed, too, from 2009’s unofficial “What went wrong, who did it and how do we survive?” to 2010’s official focus on “rethink, redesign and rebuild.”
I’ll be adding thoughts to this blog at the end of each day’s session this week, and I’d welcome any comments you have.
An excellent blog, Colin – sounds like an interesting and commercially useful week for JLL.
FYI, I’ll be meeting tomorrow (Thursday) with Madeline Little and Charles Boyle in the London office to discuss follow-up from your meeting with Lionel Barber of the FT. Happy to help in whatever way I can. Your blog is a useful input to linking the world economy with the RE sector.
BW – DeAnne Julius
Colin – Just a comment to say that this glimpse into “days in the life of Colin Dyer” are informative, enlightning, and endearing. You have reached populations of JLL who never thought in their wildest dreams, that they could see our business “through your eyes.” Thank you for opening OUR eyes, and for sharing openly and honestly with us. We feel more connected now than ever before. This is a new day in how we share and connect; I hope to see many more of them in the future. Sincerely, Joy Naseath
Colin,
In your view from the top, do you see alternataive/renewable energy becoming a comprehensive solution for your portfolio. It seems that each technology has it champions ( Solar, Fuel Cells, Geothermal) but to ever even approach the impact of Zero Energy Buildings (ZEB) it will take industry leaders like Jones Lang LaSalle requiring that all of their holding undergo a “Why not ALternative Energy assessment”. Otherwise every property will be caught in the waiting for Grid Parity paralysis.
Any plans for such a sea change?
Richard,
ZEBs are only practical for new construction, and developed countries are only adding 2-3% to their space each year. The biggest challenge is retrofitting energy savings into existing buildings, and there is a lot of good work going on there. See http://www.esbsustainability.com, for example.
Colin
Colin – I am impressed and grateful to have someone of your stature from the RE community attending this Conference. I appreciate being able to participate although virtually through your blog postings.
Rethink, Redesign, and Rebuild can be subtle or it can be dramatic. I’d be interested in knowing to what degree is being considered. A complete overhaul or just a “tune-up”?
Also, any insight on the Energy business is always appreciated.
John,
As I said in my final “Wrap” blog entry, the conference stopped at Rethink, with a good international sharing of ideas. I think in the financial markets area, there could be some significant changes. Energy did not get a lot of airtime, except the slow investment in renewables – especially in China. One Saudi delegate said, “We like oil at $70 per barrel – it’s just the perfect price level.”
Colin
Thank you for sharing your insights with all of us! I look forward to reading your postcards.
Colin,
In your blog you noted that there is cautious optimism. Is this driven by the question that Governments’ regulations and market activities are not doing enough to move the economic at a faster pace.
Is the optimism observed being generated by an undercurrent of eagerness to create market activity?
I look forward to hearing more from you on the WEF focus “rethink, redesign and rebuild”
Thank you for bringing the forum to us through your blog.
CCLB
Charles,
The optimism is from the world’s economy getting better. The caution is just natural fear of reversion to economic problems after the last two years’ experience. In general, businesses are keen to get back to “business as usual” after the Great Financial Crisis.
Colin
Dear Mr. Dyer,
Thank you for this window into the World Economic Forum.
Jim Garcia
Dear Colin
Very concerned about the manufacturing deficit in the US and Europe. The level of unemployment forecast over the next few years will drastically affect our youth and cause tremendous social problems. It is very important that manufacturing goes back to the USA, restores community and regional confidence and GDP levels, and puts the US ahead. The crisis has got to have hit hard enough for enterprise leaders to start reconsidering profit levels vs. social and economic stability.
Thank you
Ann Charnock
JLL Portugal
Ann,
43% youth unemployment in Spain, 25% across the EU – you are right, that’s a big problem. New jobs can come from services or manufacturing, we just need jobs. Having been a manufacturer, it is impossible to stop jobs and industries going to lower-cost countries. So service jobs offer hope.
Colin
It would be very interesting to get a feel of how the financial institutions intend to deal with the issue of refinancing the mountain of debt which is due shortly and accumulated during the boom years.
Roberto,
If they can gradually work their way through their non-performing loans, rebuild their capital bases and get the securitization markets going, they will be able to refinance the loans themselves. But they have a lot of work to do.
Colin
Dear Colin,
Thanks for taking time out fom your hectic schedule to attend the Davos meet.
Will be great to see your feedback on the session at the end of every day through this week.
I believe that the world ecconomy will have better statistics to showcase so as to reflect the growth of organisations this year across the world compared to 2009.
Let the forum bring all positive thoughts this year for a better and brighter 2010.
Wishing the forum a success. All the very best.
Regards
Satish
From what you can glean from the discussions there, what is the appetite for sustainability from that of a year ago?
Mike,
The appetite for sustainability across all industries is as strong, or even stronger, than a year ago. The issue of climate change in particular is not going away.
Colin
Let us know how it went with Kevin Surace from Serious Materials
Bart
We had a good dialog, and he contributed to the “Retrofit” discussion that I chaired.
Colin