As Tech Clients' Needs Grow And Lines Blur, JLL Takes A Bigger Role In Their Operations

In an increasingly competitive business environment, many technology companies seek a trusted partner that not only understands their real estate, but the engineering and manufacturing that takes place inside their buildings as well.

Chicago-based commercial real estate management giant JLL has been a pioneer in providing these facility management services and forming partnerships with technology companies, a practice known as niche CRE.

John Leddy, a JLL managing director who leads the newly formed national semiconductor, hardware and manufacturing team, said the company’s technology manufacturing business has evolved along with its work in other sectors, including financial services and insurance. As in those industries, JLL has taken on a bigger role in its tech clients’ operations as those companies seek to focus on their core competencies, he said.

“We build subject matter expertise around these industries,” Leddy said. “It used to be that a lot of facility repair and maintenance work involved managing out-tasking assignments, such as HVAC, janitorial and landscaping. While some in the tech sector have been focused on innovative workplace design and human experience for years, other segments have differing priorities, like minimizing downtime and ensuring operations are cost-efficient.”

In the past 20 years, however, real estate outsourcing has matured across the entire tech industry as more companies are seeking JLL’s help to build comprehensive real estate and facility solutions with data-driven, operations-focused outcomes. As demands for sustainability, talent recruitment and retention, and productivity edge to the forefront across the sector, technology companies that scaled quickly need partners that are knowledgeable in their industry and CRE operations.

“At one time, we stayed outside the ‘yellow line’ in their manufacturing and lab spaces, but that line is blurring very quickly as they seek to drive cost-efficiency, and the skill set they need is scarce,” Leddy said. “The question is how do we both work together to deliver successful results, using real estate as an enabler for their business? How can we help them run as efficiently as possible, at the lowest cost, and allow them to achieve their business needs?”

Some of this line blurring is due to a continuing trend of deferring maintenance while concentrating on core business operations, said John Collins, a JLL account director for a tech client. But maintenance issues won’t go away by themselves and could hamper current and future output if left unaddressed. 

“We're finding that their infrastructure and facilities really need attention, but it makes for a great partnership because that, of course, is what we specialize in — so they don't have to,” Collins said. 

Effective integrated facility management requires an experienced partner to thoroughly understand the details of the company's operation. Collins and his colleague Don Jenkins, JLL executive account director for another client, have engineering backgrounds in addition to their CRE experience.

Jenkins said the JLL team must be nimble enough to work around demanding production schedules. In electronics and tech manufacturing, it is not unusual for production lines to run around the clock, he noted.

“We roll up our sleeves and work side by side with them, and while they're focused on their core business, we're focused on their infrastructure and equipment so they can continue to run 24/7 without shutting anything down,” Jenkins said. “This requires careful scheduling and communication. As their partner, we have to figure out how we can help them maximize their productivity.”

The companies JLL works with in this space vary in size, but include eight of the 10 biggest technology companies on the Fortune 500 headquartered in the U.S. Leddy said his firm provides facility, project, transaction, space and portfolio management services for these businesses.

“Being in this business for a long time, we do a little of everything for them depending on what type of assets they have and the strategic direction they are heading,” he said.

Tech companies that have benefited from JLL's facility management expertise include a $136B “big four” technology company that was struggling to maintain control over what JLL described as a “complex web” of real estate initiatives around the globe.

Thanks to its fine-grained understanding of the client's operations, JLL developed a technology transformation road map to serve as a foundation for all future projects. Key among JLL's suggestions was the creation of a centralized program management office to oversee multiple complex project deadlines.

As a result of JLL's input, the major software and hardware provider now has ways to resolve major real estate project roadblocks, improved communication and change-management processes and detailed business process documentation. 

“What we bring to the table for clients like this is our depth of talent across the entire portfolio of JLL, as well as the playbooks and processes we’ve developed to create truly custom solutions and service,” Collins said. “I think this really differentiates us and allows us to successfully show up as a trusted real estate partner when our expertise is needed in their workspaces.”

This article was produced in collaboration between JLL and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to [email protected].