Transforming global corporate real estate strategy: Koch's partnership with JLL

With 23 projects completed across 3 countries and 8 U.S. states, plus 84 advisory engagements managed in 2024, JLL's tailored approach drives measurable results, as demonstrated through its innovative partnership with Koch Inc.

As a large, complex private corporation in the United States, Koch oversees a diverse set of global companies, subsidiaries and affiliates. When seeking to enhance real estate services across these diverse entities and generate global value, Koch turned to JLL as its strategic partner.

Koch is renowned for its far-reaching involvement in the chemicals, energy, fiber and polymers, minerals, fertilizer, pulp and paper industries, as well as technology, software and investing.

Its 120,000-plus employees across more than 50 countries occupy 140 million square feet of space in diverse facilities around the world, including administrative offices, labs, warehouse, manufacturing and mixed-use properties.

Throughout its 85-year history of growth, Koch recognized that its internal corporate real estate (CRE) team, despite being strong and capable, required enhanced expertise, integrated services and tools with global capabilities to maximize its portfolio value. Koch sought a strategic partner capable of delivering comprehensive real estate solutions while also aligning seamlessly with the company's distinctive culture and core business values.

Koch also needed its partner to help establish a centralized portfolio data system to enable comprehensive real estate optimization, along with advanced technologies to enhance operational efficiency and drive data-informed improvements across workplace environments, facilities and overall portfolio performance.

Koch determined that JLL would provide the best talent with relevant experience to be an ideal strategic partner whose cultural fit would advance its CRE priorities.

“JLL offers the key capabilities and the global footprint needed to serve our business,” says Shannon Angle, Vice President, Land, Infrastructure, Facilities and Transactions (LIFT), Koch. “JLL’s vision and values are aligned with those of our Principle-Based Management™, or PBM philosophy, making JLL a great partner for creating a new, tailored approach to delivering real estate services. Together, we created an organization that embodies our PBM principles and also ensures that our companies can receive the real estate solutions they need.”

PBM is a framework based on principles of human progress that enable individuals and organizations to succeed long term by creating superior value for others. It encourages individuals to embrace mutual benefit, integrity, humility and continuous improvement, leveraging the principles of entrepreneurship, discovery and transformation. This encourages everyone to be collaborative innovators and value creators—ideologies embraced by both JLL and Koch.

The global real estate outsourcing partnership with JLL was the first of its kind for the Koch team. Initially, the relationship was based on the standard global service delivery model of corporate real estate services including full-time integrated facility management (IFM) services. Koch and JLL branded the CRE organization as the Land, Infrastructure, Facilities and Transactions (LIFT) team to better communicate its purpose and mission.

However, Koch’s global footprint encompasses numerous geographically dispersed companies and a diverse corporate real estate portfolio with a myriad of stakeholders and decision makers. The multitude of businesses have different real estate priorities—and the one-size-fits-all approach to CRE does not meet its unique needs.

The LIFT team soon recognized that it needed a new operating model that would better align CRE service delivery with the distinct needs of each business partner. Most critically, it needed to adopt a new mindset and unique processes to engage internal business partner stakeholders and proactively recommend customized solutions.

Taking a step back from the traditional, full-service IFM model, JLL and the Koch team undertook a CRE transformation process. The goal was to reimagine how the real estate function could best serve the individual companies and the corporation with tailored solutions.

The team collaborated to create an innovative, customized service delivery model, offering a menu of FM services that would better meet the needs of the various Koch companies and their varied real estate assets. The new approach would deliver tailored real estate solutions, drive efficiency and create value across the Koch corporate organization.

Full-service IFM is an option, but companies also can choose a more limited, tailored scope of FM support. A company may want to start with site assessment and asset management recommendations to optimize equipment life cycles; seek consultations on energy-efficient lighting, compressed air systems, energy and utility management; or general operational efficiency. Or they can choose targeted FM Flex services, augmenting in-house services with mobile engineering, vendor management, janitorial services, chiller maintenance or other specific services.

The companies can rely on LIFT for not only FM, but also for nearly any real estate service needed—from occupancy planning, workplace strategy and relocation management to portfolio optimization, transaction management, project management, lease administration and more. For instance, LIFT has advised on workplace strategy, look and feel guides as well as design visualizations and insights from JLL’s annual Occupancy Planning Benchmarking Report.

To support Koch’s talent recruitment and retention strategies, LIFT provides experience services that include curated programs and amenities aligned with the individual business’ vision for its workplaces. LIFT’s experience services encompass event management, office logistics support, transportation support for employee commutes, and food and beverage.

Within LIFT, the Integrated Solutions Management (ISM) team provides a single point of accountability for projects and initiatives. ISM creates innovative approaches, adapts them to the stakeholders’ requirements and drives collaboration between LIFT and stakeholders to meet business objectives. ISM leaders also look to optimize resources and manage project risk while maintaining high-quality services.

Now, LIFT is helping Koch businesses advance their goals through diverse real estate strategies. Initiatives include creating engaging environments through strategy, occupancy planning, human-centered design and curated amenities.

LIFT is focused on advancing five key priorities for 2025:

• serving as trusted business partners
• creating strategic relationships
• building capabilities in relevant data and analytics
• empowering talent
• pursuing operational excellence
   

Under the LIFT model, services are right-sized for the diverse needs of Koch companies.

LIFT continues to advance its priorities and demonstrate its broad capabilities through a range of key initiatives. By delivering integrated solutions across office buildouts, specialized relocations, portfolio optimization and operational excellence, LIFT helps its business partners create environments that support business objectives, enhance employee experience and drive long-term value. The following recent projects highlight the depth and versatility of its expertise.

Workplace transformation

LIFT manages large administrative office buildouts, transforming coworking and underutilized spaces into modern, flexible workplaces designed to support talent growth and evolving business needs. In addition to physical space design, LIFT brings new amenities and technology to the workplace, introducing capabilities that improve productivity and elevate the employee experience. These projects have consistently been delivered within tight timelines and at a lower cost than expected.

Portfolio optimization

LIFT’s expertise also extends to portfolio optimization, where they have analyzed global real estate footprints to uncover opportunities for space reduction and cost savings. Its efforts have enabled organizations to better allocate space, execute dozens of transactions across multiple countries and manage the disposition of surplus properties, including significant land holdings. Its approach includes co-locating multiple companies together to optimize leases and maximize the value of real estate assets, particularly in strategic talent markets. This capability enables organizations to reduce costs, improve collaboration and ensure that new spaces are operational on schedule and well-positioned for future success.

Operational excellence

Operationally, LIFT supports reliable operations in addition to regulatory compliance, sustainability and supplier management. Its team has implemented standardized compliance processes, achieved industry certifications for facilities and delivered cost savings through strategic sourcing platforms. In rapidly expanding regions such as Bangalore, India, LIFT has led multiple facility expansions, enhanced employee amenities and provided a range of support services, including guest experience, food and transportation.

Through these initiatives, LIFT continues to create environments that foster productivity, collaboration and long-term value for Koch.

In keeping with Koch’s historically decentralized structure, individual companies are not required to use LIFT services. However, many choose to do so because LIFT has proven its adaptability and ability to add value to Koch brands. As of 2024, LIFT has been providing scalable, agile real estate solutions and ongoing services to 19 diverse Koch businesses in 18 countries.

Branded as LIFT, Koch and JLL are bringing a new approach to global real estate management. With the help of JLL, Koch is better supported to focus on real estate, business alignment and strategy in the years to come.