Partnering with an outside provider of facilities management can have its hurdles, but with the right partner selection agencies at all government levels can minimize operational costs and enhance service quality, while successfully navigating political agendas and public scrutiny. Visit http://bit.ly/govt-real-estate-solutions to download the full paper: The intersection between politics and real estate.

1. The intersection
of politics and real estate

2. 1July 26, 2014
Benefits to partnering
• Lower operating costs
• Lower risks for the public sector entity
• Increased focus on core talents
• Higher quality results
• Better data collection and analysis
• Smarter and more strategic
decision making
Why government organizations should partner with a third party firm

3. 2July 26, 2014
Challenges
• Public scrutiny
• Overcoming the negative connotation
surrounding outsourcing
• Balancing the amount of information
disclosed to the public
• Addressing concerns of existing
government employees, including
union members
The hurdles to overcome when choosing to partner with a third party

4. 3July 26, 2014
• Provide a high degree of transparency
and communication to the public
• Educate the press and public on
the project initiatives
• Manage profit expectations
• Select a real estate partner based
on merit and experience
• Partner with ethical service providers
who have a track record of corporate
social responsibility
Solutions for overcoming public perception issues

5. 4July 26, 2014
Solutions for overcoming job loss concerns
• Assess each individual situation to
determine a tailored approach
• Analyze current talent and determine any
existing gaps that should be supplemented
• Engage in talent discussions early to avoid
automatic layoffs during the outsourcing
process
• Understand that the relationship between
outsourcing and unions is not a binary
decision; hybrid models with union talent
can work well

6. 5July 26, 2014
Beyond cost containment
Engaging private-sector firms in outsourcing facility
management and advising on real estate projects is
too big an opportunity to miss.
Outsourcing real estate management and leasing functions:
• Frees up capital for other uses
• Shares the best strategies learned in the corporate world
• Instills private sector efficiency into the government
One elected official noted:
“I don’t care who runs my real estate portfolio if it enables me to potentially put tens
of million of extra dollars into education.”

7. COPYRIGHT © JONES LANG LASALLE IP, INC. 2014
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Jeremy Becker: Jeremy.Becker@am.jll.com
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politics and real estate?
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