How to prepare

Maximize real estate’s contribution to enterprise success

• Does this change provide your Corporate Real Estate team with a real opportunity to lead corporate efforts and become a strategic advisor in this area?
• Are you positioned to lead and manage a cross-functional team that would conduct an initial assessment and manage the ongoing governance process?
• Do you have the organizational ability to complete the initial due diligence and drive the necessary process changes?
• Do you have the level of detail on your portfolio you need to conduct the due diligence and an assessment?
• Can you build and maintain the organizational structure, process capability and human capability to support and lead a proactive, dynamic lease accounting and change management process?

Our Strategic Consulting professionals are here to support your organizational, process and change management activities by:

• Facilitating team workshops
• Developing and implementing stakeholder management processes (engage stakeholders, implement governance framework, develop, train and educate the cross-functional response team, and develop a change management and communication plan for driving internal change across stakeholders)
• Implementing a change management and communication plan for driving internal change across stakeholders
• Assessing organizational impact and resourcing needs for lease administration, transaction approval, and financial reporting processes
• Lean process design for accounting for leases, initial measurement of the right-to-use asset and liability to pay rent, subsequent measurement, accounting for subleases, quarterly reporting, and cross functional integration within business units
• Portfolio impact analysis to determine how changes will affect the financial statements at go-live date
• Ongoing impact assessment to comply with the periodic assessment requirement for reporting purposes
• Technical training

For more information about these services, visit our Consulting web site.

A patented path to collaborative, consistent decision making

• Do the changes to lease accounting impact the ability for your current portfolio of leased and owned assets to meet both your key operational and financial objectives?
• Will these changes lead your organization to evaluate the lease vs. own decision differently?
• Can you quickly and efficiently drive real estate financing decisions with the collaborative consensus of all key stakeholders?
• Is your organization challenged by inconsistent processes and conflicting agendas when evaluating real estate financing options?
• Are you able to measure and clearly communicate the results of your financing decisions?

Corporate real estate teams can optimize knowledge gained through Jones Lang LaSalle's patented Financial Alignment and Optimization (FAO©) decision methodology to proactively drive sound financing decisions for a specific property, or across an entire portfolio. The result is an approach that incorporates key financial and non-financial criteria, developed jointly by your Chief Financial Officer, treasurer, controller, corporate real estate, accounting, legal and tax groups, as well as relevant business units.

FAO© can improve and streamline your organization's financial real estate initiatives with:

• A consistent, systematic decision-making process for evaluating financing options
• Consolidation of issues and concerns of all relevant stakeholders in evaluations and decisions
• Reconciliation of diverse, often conflicting agendas
• Results that flow directly from and align with our organization's overall business objectives and strategies

Drive value, reduce costs and mitigate risk

• Do you currently have access to the required lease information that is necessary under the proposed changes in lease accounting?
• Does your existing lease administration system have the appropriate process, procedures and certifications in place to accommodate the changes in lease accounting?
• Are you able to calculate and report the required information as a result of these changes?
• Is your real estate strategy supported by an accurate view of upcoming critical lease events and current terms to maximize portfolio value?
• Are you actively managing landlord charges to ensure your payments are based on appropriate rates and agreed pass through of operating expenses?
• Do you have control over executed documents and approval processes to proactively manage SOX and corporate compliance risk?

Effective lease administration programs are the foundation for strategic portfolio management—providing the ability to turn data into insight and impact. When data is not actively managed, the critical ability to track, plan and proactively integrate the corporate real estate portfolio into dynamic core business strategies becomes impossible. As a result, real estate assets are underutilized; opportunities are missed to protect options and rights; and excess and inaccurate charges are unknowingly paid. This puts organizations in a reactive mode versus positioning them to quickly and confidently identify and implement opportunities that drive value and cost savings.

Our scalable platform is designed to support a diverse set of needs on a local, regional and global basis. From basic management of lease abstractions and critical dates to full financial management of landlord invoices and reconciliation audits, we provide comprehensive knowledge and access to data across the portfolio that enables you to make strategic real estate decisions that support and enhance the core business.

Jones Lang LaSalle has been the leading provider of lease administration and lease audit services for nearly two decades. A consistent, systematic decision-making process for evaluating financing options:

• 370+ trained professionals
• 6 Regional Operating Centers – Pittsburgh, Dallas, Mexico City, Warsaw, Delhi, Dalian
• Web-enabled technology platform
• 24 x 7 access to data
• Multi-language and currency support
• 165 corporate clients
• 87k sites managed globally
• $8.8 billion in managed spend
• $40 million in savings and avoidance
• S SAE16 SOC1 certified process and dedicated internal audit team

For more information about these services, visit our Lease Administration web site.

Uncovering opportunities, achieving superior results

Corporations today face more pressure than ever to deliver increased value to their shareholders—as well as enhanced flexibility to address ever-changing conditions. As a result, companies now find themselves in need of advice and solutions to execute the right outcomes for operational and financing considerations for their facility and location requirements.

Given the changes in accounting are your real estate assets deployed to optimize and leverage the capital of your enterprise? Is there an opportunity to reposition certain assets to drive value?

Our corporate finance professionals help build a bridge between your real estate occupancy needs and your economic and financial reporting considerations. Jones Lang LaSalle delivers creative structures that align your real estate objectives with your overall business goals. We are uniquely positioned to help you with single property as well as complex portfolio decisions.

We offer expertise in:

• Asset sales
• Sale/leasebacks
• Property acquisitions/dispositions
• Build-to-suit leases and financing
• Mergers and acquisitions
• Joint ventures
• Structured finance
• Real estate accounting, tax, legal and finance

For more information about these services, visit our Capital Markets web site.

• Will the lease accounting changes affect your real estate strategy?
• When is your next move/relocation/renewal going to take place and how will you be affected by the changes?
• Is there an expert at your organization that has learned the ins and outs, details and impacts of the lease accounting changes?
• Do you understand how lease structure can impact your financial results? Are your leases appropriately structured to optimize your operational and financial objectives?
• Do you have the advisory support that you need to help guide you through the lease accounting changes?
• How will the lease accounting changes affect your landlord and, in turn, you?

Your Jones Lang LaSalle partners are highly educated on the lease accounting changes. When going through your decision and/or transaction process, you'll need specific expertise on your side in order to minimize risk and maximize benefits. Whether your organization is renewing, relocating, acquiring or disposing of space, or expanding globally, our brokerage teams are prepared to serve as your strategic advisor. Our experts have the experience and knowledge to help your organization navigate the new lease accounting standards and how they will affect your bottom line.

For more information about these services, visit our Transactions web site.