NEW YORK (Reuters) - Russia and Japan are major growth areas for Jones Lang LaSalle (JLL.N: Quote, Profile, Research, Stock Buzz), alongside more obvious destinations like India and China, the property consultant's chief executive said on Monday.
Moscow has become a destination for multinational companies looking to tap into the Russian market, while Japan's resurgent economy is a key to its growth strategy, Jones Lang CEO Colin Dyer told the Reuters Real Estate Summit in New York.
Dyer said Japan's recovery was first seen in investment sales. More recently, though, Dyer said the recovery has broadened.
In India, Jones Lang, whose services include leasing and managing buildings, helps clients find facilities for software work or outsourced back-office support for U.S. businesses like banks and insurers.
Demand for its services in China has been led by international retailers, including Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research, Stock Buzz), as well as manufacturers looking to set up low-cost operations.
Jones Lang, with offices in 100 cities in 40 countries, has followed its clients to new markets, Dyer said. In China, that has meant setting up offices first on the heavily populated east coast and only gradually moving westward. Vacancy rates in Beijing and Shanghai are as low as 3 percent, Dyer said.
The company, which also manages investment funds, currently has six full-service offices in China and 10 project offices, which focus on specific tasks such as managing a shopping center.
He said the company is more focused on growing existing businesses, including investment management and corporate outsourcing, rather than setting up shop in new countries.
"We selectively put down new offices," Dyer said. "We're principally a big city real estate company, and big cities don't grow that fast." Continued...
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