e latest post on Jones Lang LaSalle's blog from the CoreNet Global Summit, Hong Kong
Read more at
www.joneslanglasalleblog.com/corenet
Posted by:
David Brown
Head of Lease Administration, Asia Pacific
One of the biggest legacies of the global financial crisis has been the elevation of CRE as the “C-suite” became more focused on real estate costs. I think the next big shift will come about as a result of the global lease accounting changes, which will see all leases go onto the balance sheet and will bring the role of CRE into even sharper focus.
It’s quite an exciting – and challenging – time for CRE. It will be challenging because many CRE leaders are struggling to understand the financial implications of leases. According to Jones Lang LaSalle’s Global CRE Survey 2011, 60% of CRE executives globally 60% of CRE executives are not yet familiar with the details of the proposed changes. They will need to gain accounting skills and understand how to articulate these impacts to the business
How many will survive this scrutiny? I expect that those who cannot adapt will be on the way out, while those that can expand their skill sets will be elevated even further within their organizations.
Mike Zamora from Cisco Systems, who was one of the panelists, said that he wasn’t trying to scare us – but the reality was that a lot of CREs looked a bit pale at the end of the session!
Are you prepared for the changes? Find out more at www.LeaseAccountingChanges.com
David