Headquarters optimization leads to 70% footprint reduction

Challenge

A global industrial client wanted to right-size and consolidate a former headquarters office footprint. The client’s goal was to sustain the right level of corporate image and brand throughout amenities, common areas, parking, security, etc. while converting from a single tenant to a multi-tenant site. In addition, client wanted to better align workspace types with employee workstyles and reduce operating expenses.

Approach

JLL took a holistic approach to the optimization effort, working with several business units to understand strategic plans and business objectives to ensure alignment with changes to the portfolio.

• We worked with client HR and business contacts to obtain four-year headcount growth/attrition plans.
• We applied and analyzed utilization and behavior against HR census forecast to determine future footprint/space needs and develop future state block plans.
• We drove alignment across real estate functions by collaborating with project and transaction partners to develop a multi-tenant demising plan and sublease strategy.
• We developed phased optimization plan aligned with forecasted space requirements and optimized the potential for tenant income.

Results

• Right-sized client held space by accomplishing a 70% reduction in footprint over four years.
• Achieved branding goals at the site, creating opportunities for neutral common areas and appropriate tenant signage.
• Enhanced space for collaboration and engagement, bringing vibrancy to the workplace and improving human experience.
• Reduced operating cost by mothballing vacated space until it was subleased.