Jones Lang LaSalle 1Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Geographically, in the U.S., Houston and other energy and technology-based markets did well. London and Moscow led the way in Europe, while Hong Kong, Greater China and Southeast Asia saw good results in Asia-Pacific.”

“The other big issue in real estate markets is the disconnect between leasing and capital market activity in the broader markets…In capital markets, global investment volumes had a strong start to the year…leasing…Markets were down 2% in Europe as a whole and 17% lower in the principal Asia-Pacific markets with big falls in major Chinese and Australian cities…Vacancy rates across 98 global markets stood at 13.3% in the first quarter”

“We see capital values increasing by 2% to 3% year-on-year, showing continued firmness in markets worldwide. We expect investors to move out along the risk curve in search of available assets and enhanced yield. We expect leasing markets to be flat year-on-year globally with modest growth only in the U.S.”

“the U.S. economy feels to us to be underlying, pretty strong and headed for continued momentum perhaps increased momentum.”

“I would say one of the things that we’ve seen dramatically change in the marketplace is the ability to recruit. We have historically — last year, it got much more difficult in the second half of the year, but we were up some 20 people in the first quarter versus being down some net 2 people the prior year, and we’ve already approved significant additional hires that will come in to both our leasing and our capital markets going forward…we’re actually seeing our ability to attract and hire, open up again. It really started to slow down in the second half of last year and now, all of a sudden it, seems to be open again. And so that’s very good. I mean, there’s always pressure on compensation, but I think we have good discipline around that.”

“We are, for example, seeing the opportunistic funds, private equity funds, looking at Spain closely now, which we haven’t seen before. The deals are not there yet and but they’re now putting teams in and spending time. We hear from people on the ground. So I think, likely, there’ll be a little bit of a move out on the risk curve, which means that the market will broaden and deepen over the coming year”