Tech firm optimises global CRE portfolio through economic waves

In the fast-paced world of technology, adaptability is key. For one global tech giant, this principle extended beyond its products to its vast global real estate portfolio. What began as a single 40,000 SF office in the mid-90s expanded to a sprawling, diverse 50M SF portfolio across more than 60 countries. But with rapid growth comes growing pains, and as economic uncertainties loomed, the company faced a critical juncture in its real estate strategy.

JLL's partnership with this tech leader evolved from a single broker engagement to a comprehensive suite of more than a dozen services, with transaction management (TM) emerging as a linchpin in navigating the complex global real estate landscape. The challenge was clear: transform a fragmented, inefficient portfolio into a streamlined, responsive asset that could pivot with changing market conditions.

"The client's footprint grew at a frenetic pace, prioritizing speed to market and customer satisfaction," explains the JLL TM lead. "However, like many businesses, their aggressive pre-pandemic growth pivoted to portfolio optimization strategies during quarantine, then to return-to-office initiatives, and additional optimization – the only constant was change.” So, the client worked closely with JLL partners to rethink people, processes and tools to redesign for a revitalized smart transaction strategy.

JLL rose to the challenge by designing a new transaction management operating model tailored to the client's dynamic needs. This model deployed highly skilled transaction managers and analysts in strategic hubs worldwide, supported by a global center of excellence. This structure ensured consistent standards, resource optimization, and agile decision-making across the portfolio.

"Our approach required flexibility, trust, and collaborative spirit," notes the JLL TM Lead. "We needed to create a stable yet agile framework that could deliver results consistently, regardless of market conditions."

The JLL team's remit expanded beyond traditional transaction management, encompassing business headcount and corporate spend approvals. This holistic approach allowed for seamless alignment between transactions and overall portfolio strategy.

As economic headwinds intensified, the value of this partnership became even more apparent. The JLL team showcased its agility by swiftly transitioning from site exits to renewal and expansion strategies, adapting to the client's evolving needs in real-time.

The results speak volumes:

• Over 400 transactions annually, totaling 18M SF on average, including new leases, expansions, renewals and dispositions
• Development of comprehensive documentation, including organizational frameworks and transaction playbooks
• Successful navigation of the portfolio through multiple strategy pivots

Perhaps most importantly, JLL's approach to transaction management became a cornerstone in the global transformation of the client's broader real estate organization. By establishing clear processes, leveraging global expertise and maintaining flexibility, JLL enabled the tech company to optimize its portfolio effectively, even in the face of economic uncertainty.

As this tech leader looks to the future, its partnership with JLL continues to evolve. With a robust, agile transaction management model in place, the company is well-positioned to adapt its real estate strategy to whatever challenges or opportunities may arise.

In a world where change is the only constant, JLL has made it possible for this global tech giant to turn its real estate portfolio from a potential liability into a strategic asset, ready to support the company's mission and growth for years to come. Find out how you can enhance your portfolio strategy with our team of experts in transaction management.

Note: This case study is an anonymized representation inspired by a real client engagement.