EUR 850.00 For Business Accounts Only

Morningstar | JLL’s platform and competitive advantages will benefit shareholders well into the future.

With roots in over 250 years of operations, Jones Lang LaSalle has been able to build a top brand and service platform within the commercial real estate industry. Currently the second-largest CRE services firm by market capitalization and market share for leasing and transaction volume, JLL continues to heavily invest in its five interconnected service lines, investment management arm, and technology and research offerings. Given the firm's successful history of expanding its brand and global service platform while maintaining robust ROIC spreads to its cost of capital, we believe JLL will continue to capture disproportionate market share of the increasing long-term demand for commercial real estate services and create shareholder value.Additionally, JLL is one of just a few firms that can satisfy increasingly global clients that are further outsourcing and consolidating the multitude of their noncore CRE-related needs. As continued urbanization drives demand for institutional real estate and real estate services globally, we expect outsize growth for especially trusted and recognizable institutional firms such as JLL. However, the firm is purposefully shifting toward the more stable, necessity-based property and facilities management businesses. These segments proved resilient through the last downturn as outsourcing has grown, and they allow JLL to develop its relationships and profitable cross-selling opportunities, driving robust organic growth, fortifying its wide moat, and putting it in an even better position to navigate future volatility. Even though other more transactional segments of the business are naturally volatile over the cycle, we think the firm has historically proved an effective capital steward. JLL has historically maintained returns on invested capital throughout the last cycle greater than its larger competitor CBRE Group. We expect JLL to continue actively deploying capital toward attractive reinvestment opportunities, pressuring margins for the foreseeable future relative to CBRE's leading margin performance. However, we think JLL will emerge a stronger platform, to shareholders' benefit.