Many regional banks perform commercial real estate (CRE) functions internally. But Michael O’Connor, Executive Managing Director for Corporate Services at Webster Bank, understood the complexity of the task and supported the business case for outsourcing the CRE functions to JLL. O’Connor worked closely with Drew Saunders, Executive Managing Director at JLL, to develop a plan for an outsourced model for Webster. That program has allowed the bank to grow and change to better capitalize on business opportunities. The merger with Sterling built upon Webster’s decade-long partnership expanding the suite of services outsourced to JLL.

As real estate experts, JLL provided the bank with a perspective that other advisors could not. For example, JLL’s Location Analytics team found that the banks’ branch locations didn’t overlap significantly, and advised Webster that all 200 of the branches should remain open to avoid disrupting customers in the communities they served.

JLL teams worked closely with Webster to accomplish goals that weren’t directly related to real estate, including a successful corporate re-brand. Within a week after the merger closed, the combined company went through a multi-million-dollar re-branding effort that transformed the look and feel of portfolio properties. Together, JLL and Webster devised and executed a well-orchestrated plan that allowed them to rebrand all of the Sterling bank branches to Webster simultaneously over the course of a weekend. The re-brand coincided with the relocation of the bank’s headquarters from Waterbury to Stamford, Connecticut.

In addition to a new look and a new home, one of Webster’s goals was to empower their employees with more choice and workplace flexibility by supporting hybrid work styles and flexible seating arrangements. JLL’s Workplace Experience Solutions and Change Management teams laid the groundwork for the bank to be able to adapt to workplace changes quickly, helping Webster compete for talent. Modern professionals value flexibility and choice in how they work, as well as technology solutions to help them make a seamless, stress-free transition from working remotely to being in the office. To deliver that need, JLL helped Webster room booking software.

JLL had helped the mid-cap bank achieve $1M in total savings and nearly $300,000 in cost avoidance. Cost savings also included the consolidation of IPS services, execution of 18 deals that provided nearly $800,000 in total savings over respective lease terms, and occupancy planning/portfolio optimization that aligned occupancy reports to larger strategic plans.

Through their combined efforts, JLL helped Webster exceed their portfolio savings goals, reaching 160% of their target. As the bank has continued to grow, occupancy costs have decreased as a percentage of net assets. This result has motivated Webster’s leadership to elevate the CRE function within the organization and operate it as a strategic arm of the business beyond facilities maintenance.

“JLL is more than a real estate company. I think of them as a tech company”

- Mike O’Connor, Webster Bank