Jones Lang LaSalle Lands Beaumont Partnership
- Jan 06, 2011
January 5, 2011
By Barbra Murray, Contributing Editor
Jones Lang LaSalle’s National Healthcare Solutions Group has established a new joint venture with Beaumont Hospitals involving the regional health system’s 8.5 million square-foot portfolio of healthcare properties. With JLL delivering a comprehensive array of real estate services to maximize the hospital company’s efficiencies, the new partnership, Jones Lang LaSalle at Beaumont Hospitals, will allow Beaumont to operate in a more cost-effective manner and provide enhanced patient services.
JLL had been working with Beaumont to develop the partnership for over a year. “The hospital industry is under a lot of financial pressure, and for Beaumont, real estate accounts for 30 to 40 percent of its cost structure so they are focused on how to become more efficient while improving care, ” Peter Bulgarelli, chief operating officer for JLL’s National Healthcare Solutions Group, told CPE. The commercial real estate services firm will oversee facility management, construction program management, utility operations, energy and sustainability services, biomedical equipment maintenance and service management, lease administration, portfolio strategy and real estate transaction services. “We’re trying to bring the best of Beaumont together with the best of JLL and our experience in the healthcare business, as well as other businesses and services, and create a value proposition. Our plan is to support their strategic initiatives from the real estate side in a very efficient and proficient way.”
Before joining forces with JLL, Beaumont, acting through its Beaumont Services Company subsidiary, had shouldered the responsibility of managing all aspects of its vast real estate portfolio, which encompasses 5.1 million square feet of acute care hospital space and 101 owned or leased off-campus patient care and business facilities in the greater Detroit area. Bulgarelli declined to discuss Beaumont’s plans for any new property acquisitions or construction projects.
For the commercial real estate industry in general, JLL’s establishment of the new integrated services partnership with Beaumont marks the emergence of a new approach to servicing the healthcare property sector. “It doesn’t happen very often that a hospital system partners with a commercial real estate services firm to help drive out (inefficiencies), so this is an extraordinary opportunity,” he noted.
JLL expects that, in addition to financial challenges, the anticipated healthcare reform-induced increase in demand for healthcare accommodations–although the new legislation’s format is now very much unsettled as GOP members of the newly Republican-controlled U.S. House of Representatives vow to abolish President Obama’s version–will prompt change in healthcare companies’ handling of their real estate assets. “With the expected need, more hospital systems will turn to new ways to drive cost efficiencies.”