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

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.

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.