Investment Management Buoys Jones Lang LaSalle

LaSalle Investment Management posted an $8.6-million increase in fourth-quarter revenue over 2001, the company reports.

"The business is focused on delivering superior performance from a broad product offering while building significant relationships with sophisticated cross-border investors," Peacock explains during an earnings conference call. "LaSalle Investment Management is an important source of earnings growth and of major client relationships and thought leadership for the whole firm."

Meanwhile, the company paid out $11.9 million in severance payments to 325 employees - an average of $36,600 each - in 2002, reports CFO Lauralee Martin. The corporate headcount now stands at about 7,000 worldwide, Peacock says.

"The focus of our people decisions has been to ensure that our high standards for service continue to be delivered to our clients," Martin says.

While leasing and management revenue was down in 2002, Peacock expects a pick-up this year. "I think that the trend is a continuing one of outsourcing," Peacock says. "We're still looking at the tip of an iceberg, and when we look at the actual amount of business that we're pitching for at the moment, I think it's going to be even busier potentially this year than last year."

"Our tenant representation, which is principally in the United States, did 3,300 transactions this year for 40 million sf," Martin says. "Last year, they did the same number of transactions but for 33 million sf, and the revenues were roughly comparable. Why? Because the lease terms are shorter, and what you're seeing is that our clients are making careful, cautious decisions. When that marketplace comfort comes back, we definitely have the clients. They'll make those longer-term decision and there's an immediate pick-up in the revenues associated with it."