What partnerships work in Asia Pacific?June 13, 2011 / By Anne Thoraval
CRE leaders in Asia Pacific are tackling the twin challenges of driving down cost and increasing portfolio responsiveness. Fuelled by the growth momentum, these markets are maturing at such a pace that we are witnessing the rapid evolution of partnerships between CRE teams and service providers.
There are geographical variations. The Jones Lang LaSalle Global CRE Survey 2011 indicates that hybrid delivery models will increasingly be adopted by companies in China, India, and Japan over the next three years. In Australia, companies are more likely to ramp up their reliance on a fully outsourced model, while in the rest of Asia Pacific (mainly Singapore and Hong Kong), firms will rely more on in-house management.
The other variable is the maturity of the company toward outsourcing. The out-tasked and relationship models are commonly favored in first-generation partnerships as they bring industry best-in-class to execute across the varied real estate tasks. As relationships mature, CRE managers typically look for more leverage and move to deeper partnering models, such as alliance or strategic alliance, which require less tactical oversight and supervision.
Multinational adopt different approaches to partnership. For example, while Japanese groups, willing to benefit from best practice developed elsewhere to address the challenges faced by CRE, tend to bypass the early stages and to directly strike sophisticated partnership deals, Chinese corporates will more likely make their debut in outsourcing in their international subsidiaries, testing the model abroad before importing it back to their domestic operations.
No “one size fits all” in the world’s most complex and dynamic region. Find out more on the partnering challenges unique to Asia Pacific in the full report, Making CRE Partnerships Work in Asia Pacific, at www.joneslanglasalle.com/CRE-Impact.