AARP Taps JLL for First-Generation Facilities Outsourcing
- Aug 20, 2013
AARP has selected Jones Lang LaSalle to provide integrated facility management services on demand for a seven-building, 887,141-square-foot portfolio, which includes AARP’s four-building headquarters compound and an office building in Washington, D.C.; two facilities in Rockville, Md.; and one in Lakewood, Calif.
“AARP like many organizations throughout the nation are certainly looking at ways to do things better and free up capital to support member services,” Herman Bulls, founder and chairman of JLL’s Public Institutions business, told Commercial Property Executive. “I think all of these congressional activities are certainly applicable to for-profit public companies, and has resulted in a new focus on all aspects of an organization, and certainly the transparency and operation of an organization. AARP is a very large not-for-profit and have subjected themselves to the same market forces.”
Under terms of a three-year contract with potential for a two-year extension, JLL will provide facility management including office moves, adds and changes. It will also manage select projects for AARP’s state office facilities nationwide.
According to Bulls, AARP will gain access to a facility management model that provides cost and time savings though a mix of dedicated and variable resources through JLL’s innovative IFM On Demand service.
This is AARP’s first foray into outsourcing corporate real estate services, although it has outcasted services before. The subtle difference in this deal is that JLL will be the integrator of all those services and put them in a framework so it is buying services at the best price possible, receiving the best quality possible and integrating the reporting around the various activities.
“You look at the entire objective for doing this and I think, overall, they will get some sort of cost savings and there should be an increase in the quality of services they are getting, therefore the occupancy of their employees, which should increase their productivity,” Bulls said. “We look forward to helping AARP improve the productivity of its corporate real estate by incorporating best practices in facilities management.”