Archive for the ‘MIPIM’ Category

New drivers for future business

Friday, March 22nd, 2013

Daniel_GoroschPosted by: Daniel Gorosch
Managing Director
Jones Lang LaSalle, Sweden

 

When you travel around the business districts of Europe, even on the Riviera where many of us are this week (yes, MIPIM!), you get struck by all the giant buildings and huge constructions, housing thousands and thousands of workplaces for millions of people. From the outside it all appear square and immobile – and very impersonal. And you come to wonder: maybe it’s time to change focus?

This is especially true for businesses. It is easy to remain too focused on property and less on what actually drives the values – the people inside. In our recent report “A New Dawn for Workplace Strategy” we are changing perspectives. The main issue is not a matter of space anymore, it’s about people.

Workplace Strategy is high up the corporate agenda due to economic uncertainty, balancing cost savings and growth agendas, the increasingly competitive landscape and maybe most of all: talent shortages. Companies have to consider the requirements of the new generation that is on-the-go 24/7, and change the way we think about workplaces. Even the word itself signals inflexibility. Maybe it’s time to talk about work life instead of workplaces?

At our new JLL head office in Stockholm we are applying these new workplace theories in real life. These ideas are packaged under the new concept WorkSmart, and we invite all of you interested in how new workplace strategies can yield results way beyond traditional cost savings, to have a look in our new office!

These issues are so exciting, not only because of its impact on corporate cultures, values and future earnings, but also because it concerns every corporation around the globe.

What’s in a name?

Wednesday, March 20th, 2013

Posted by: Dr Lee Elliott
Head of EMEA Research
Jones Lang LaSalle

 

And so my first MIPIM comes to an end.  It has been a great experience.  The conversations that I have had with so many new names over the last few days (and nights) have pointed to improving sentiment and renewed vibrancy within the property sector.

But I leave the Cote d’Azur with a sense of caution too.  The messages that emerged from Thursday’s key note address are still fresh.  They are words that certainly lived up to the surname of the presenter, Dr Jürgen Stark – a former board member of the European Central Bank.  Among his thoughts on prospects for the European economy, Dr Stark emphasised:

  • It is unrealistic to expect a return to pre-crisis GDP levels anytime soon.  Lower and slower growth trajectories will be a reality in Europe.
  • Probabilities for a mild recession in the Euro area during 2013 are high, with the prospect of France entering into recession also rising.
  • The political / democratic infrastructure of Europe has made it difficult to make timely and bold decisions in managing the crisis and this will continue.
  • The Euro crisis is on-going and multi-faceted with fiscal, structural and institutional components.
  • The action taken to date has been appropriate and effective but there is still some way to go.

All points received and understood.

But markets are as much about psychology as they are about fundamentals.  There is no doubt that the appetite for risk has returned, fuelled by low interest rates.  The institutional and regulatory reforms underway look to have calmed markets and indeed have brought about a positive reaction.  Sovereign yield spreads are, consequently, under control.  Adjustments in unit labour costs and internal imbalances are being made.  So the positivity demonstrated in Cannes is certainly not misplaced.  It would be wrong to give Europe a bad name.  Progress has been made.  But similarly, no-one should underestimate the distance left to run.

Celebs inspire, but city collaboration counts

Tuesday, March 19th, 2013

Jon NealePosted by: Jon Neale
Head of Research – UK
Jones Lang LaSalle

 

Almost all the large UK regional cities had stands in MIPIM’s conference hall, alongside their competitors on the continent. Down on the Birmingham and Leeds stands, all the talk was of co-operation between the core cities, but it was apparent that another exhibitor sees itself first among equals.

Manchester occupied prime position at the front of the exhibition centre as well as various hoardings around the main entrance. With celebrity speakers such as Brian Cox (on the city’s burgeoning knowledge economy) it clearly sees itself as being on a par with a capital such as Stockholm, with which it shared the banner at the entrance to the hall. However, my favourite – and most original – promotional idea was rather more low-key: Bristol & Bath’s employment of a street artist to permanently redecorate their hoardings, an inspired move for the home of Banksy.

More telling, though,was the ability of cities to carry their region with them. Throughout the exhibition, it was evident that it is the city-region, not the arbitrary local authority area, that is of vital importance. Even groups of adjacent cities are happy to share a platform; next to the Jones Lang LaSalle stand, the Nordrhein-Westfalen region – effectively the Ruhr –brought together the cities of Cologne, Essen, Duisberg, Dortmund and Bochum, among others.

The best UK example of this was probably the Leeds City Region, which managed to bring proud Bradford and affluent York under its umbrella, as well as much of the rest of West Yorkshire. The same spirit of collaboration applied to Derby and Nottingham, and, as mentioned before, Bristol and Bath.

On the other hand, I notice, the ‘Business Birmingham’ stand was completely isolated from the Coventry & Warwickshire presence, even though the latter’s boundaries are around seven or eight miles from the heart of the former. I can’t verify this, but doubtlessly the Black Country authorities were sitting somewhere else.  As a West Midlander myself, I couldn’t help but despair at this;  I realise there are local identities and interests, but surely it would be possible to bring some of these initiatives closer together while still maintaining some separation – as the Germans of Nordrhein-Westfalen demonstrated so well.

Most, it seems, were aware that there may only be a few real winners over the next few years and that, away from world cities such as Paris and London, only the collaborators will succeed.

Four seasons for a real estate fair

Monday, March 18th, 2013

Pierre MarinPosted by: Pierre Marin
CEO
Jones Lang LaSalle, Italy

 

 

Despite the uncertainty of the weather, I found the mood of this edition of MIPIM was positive – even with regards to Italy!

Compared to 2012, when there was talk of country risk for Italy and of its exit from the Euro, this year the main topics of conversation, was the appointment of a new Pope and the outcome of elections, along with consequent uncertainty about the country’s growth.

From the various meetings held with foreign investors, I was pleased to hear that Italy was finally back on their list of countries to invest in, though not in pole position.

But the decision to invest in the third economic powerhouse in Europe is linked to greater visibility on the stability of the government and a market repositioning (or better repricing).

For better or for worse, the important thing is that we continue to talk about Italy. We are confident that Italy will once again be an attractive market for investors.

Grand Paris @ MIPIM: Infrastructure upgrades and real estate obsolescence

Thursday, March 14th, 2013

Posted by: Julien Walid Goudiard
Director, Project & Development Services
Jones Lang LaSalle France

The French Prime Minister has confirmed that €27 billion is planned over the next 15 years to upgrade Paris infrastructure. The impressive presence of Grand Paris at MIPIM confirms the large global ambitions of the city and with this upgrade now confirmed, we have an exciting opportunity to address the real estate obsolescence challenge.

With an office stock of more than 50 million square meters, the Paris Region is the biggest European market and has doubled in size over the past forty years. Office architecture, as with geological layers, reveals the DNA of each societal period. It embodies the aspirations and events that profoundly shape our environment.The digital revolution, driven by the younger generations, is transforming our society at a speed never seen until now. Today, new technologies are changing the way we work, and tomorrow they will trigger new physical spaces where we collaborate together.

This fundamental shift accelerates a building’s obsolescence in all its dimensions, far beyond the single issue of energy: material life cycle, quality of use, scalability and reversibility of buildings, alternative location, urban integration, mixability of functions within buildings, neighbourhoods and cities.

By staying attentive to these changes via its Corporate Solutions activities, Jones Lang LaSalle helps clients to renovate and to build real estate that respects the environment, promotes the quality of work and comfort of employees, that promotes corporate social responsibility and matches the economic reality in order to make a sustainable real estate asset. As Project Manager, Jones Lang LaSalle advises and manages the development of projects through the three dimensions of Sustainable Real Estate, with an objective to optimize both financial and sustainable asset qualities.

MIPIM offers a great opportunity to confirm we have reached the tipping point, both for Paris and real estate obsolescence.

Nordic humility

Thursday, March 14th, 2013

Daniel_GoroschPosted by: Daniel Gorosch
Managing Director
Jones Lang LaSalle, Sweden

 

It’s not without a sense of pride I’m enjoying  MIPIM in beautiful Cannes this week. The bi-annual report from the Nordic office market, the Jones Lang LaSalle Nordic City Report, has just left the printing machines – and it shows clearer than ever before that the Swedish cities (along with the Norwegian to be honest…) remain in the top of the European league when it comes to resilience against the euro crisis.

Of course we’re not unaffected by the impact from the financial turmoil in the euro zone, and the report shows that 2013 is likely to be a challenging year even for us up in the north. But it’s hard to be downhearted with transaction volumes exceeding a hundred billion SEK only in Sweden last year, of which almost half occurred during the last quarter.

I’m also proud of our research by which the reports are underpinned. Not only we ourselves find our property research the most thorough and comprehensive in the market, but also the Euromoney magazine has once again recognized it as the best in Sweden. For the fifth consecutive year.

Confessions of a MIPIM virgin

Thursday, March 14th, 2013

jon nealePosted by: Jon Neale
Head of Research – UK
Jones Lang LaSalle

I feel almost embarrassed to admit that this is the first time I have visited MIPIM. My excitement and interest in being here – and my enjoyment of the distinctly sunny, spring-like weather – is tempered by a slight sense of guilt. Apparently in below-zero Sussex, schools are closed and my wife is trapped inside with two under-5s.

The exhibition halls at Cannes provide ample evidence for a central argument made by Jones Lang LaSalle’s research teams: the property market is increasingly about competition between cities rather than countries. It is like an EasyJet itinerary of European cities: Gothenburg. Dusseldorf. Toulouse. Edinburgh. Poznan. Milan.

The hierarchies of European city-regions are also apparent. London and Paris have large tents outside the main hall – although admittedly the largest such structure belongs to the Russians. The fact that Turkey is the ‘country of honour’ – and that there are many conversations about the growing appeal of Istanbul – further demonstrates how the economic power of Europe’s eastern fringe is growing.

As head of UK research, though, my main interest is in how British cities try to grasp the opportunities presented by MIPIM. London, a case apart for obvious reasons, has no problems in grabbing the limelight; for what seems like several hours photographers and journalists appear to be circling Boris Johnson. Meanwhile, its tent is bursting with opportunities and initiatives, from Nine Elms and Crossrail to Hounslow High Street and Ealing. How the regional centres fare, though, will be the subject of my next blog.

Excess baggage

Wednesday, March 13th, 2013

Dr Lee ElliottPosted by: Dr Lee Elliott
Head of Corporate Occupier Research, EMEA
Jones Lang LaSalle

 

As I board the much delayed plane to my first ever MIPIM, I am struck by one thing.  Property people sure don’t travel light!  Our cabin currently resembles the luggage department at Harrods (a clear statement is being made with the quality of the apparel).  Soon, I fear it will transform into a battle as all seek to fill every available crevice with their essential life supplies for the next four days.

Of course, the notion of property professionals being weighed down by baggage is apt given recent market dynamics.  For investors, the increasing polarisation of the market has been tough to navigate.  For occupiers, the need to balance increasing demands for productivity with the realities of legacy portfolios is difficult to strike.  For both, financing is tough and the uncertainty of  the last few years still blunts the decision making process.

So as I arrive and await yet more luggage at the carousel, I am looking forward to seeing whether this year’s MIPIM delegates feel able to travel light any time soon.

Crossrail, crashing waves and cocktails

Tuesday, March 12th, 2013

guy grainger jones lang lasallePosted by: Guy Grainger
UK Chief Executive
Jones Lang LaSalle

 

MIPIM has started. If you’ve never been, Jones Lang LaSalle  have a huge marquee on the beach which is fully branded and looks amazing. Some of our office receptions can learn a few things by seeing what can be knocked together in a few days! Our prime slot is only 5 minutes away from the Conference Centre. If you are anyone in the property world, then at some point you want to be seen in the JLL marquee.

Last night we hosted a drinks reception with London First, attended by the Deputy London Mayor, Ed Lister. A very civilised affair, and whilst I am used to being heckled by a few colleagues when I stand up to say a few words last night it was the howling wind and crashing waves that were doing their best to upset my rhythm.

Those who know me will recognise I like the odd inspirational quote and statistic. My current standout MIPIM stat comes from the Deputy Mayor who told me that £75 billion is required over the next 15 years to upgrade London’s infrastructure – that includes the cost of Crossrail 2. This highlights London’s untapped potential.

Keep calm and think of Italy

Tuesday, March 12th, 2013

gianluca-sinisiPosted by: Gianluca Sinisi
National Director, Office Capital Markets
Jones Lang LaSalle Italy

 

 

A long motorway. A fast car. Some cokes. And a lot of hopes. I am driving to Cannes. I am going to MIPIM

I know that it will be tough and difficult to discuss my country. But I don’t want to talk about dwarfs or weeping over our tragedies. I am determined to show a great nation, made up by serious and committed business people, who, despite all, believe Italy is “the place to be”. It is a place to do business. There are lots of opportunity and I want to help raise the potential of this wonderful country.