An interview with Mark David
Editor’s note: Mark David is a Managing Director of Jones Lang LaSalle. He directly oversees the firm’s Construction team in the New England region, and is the National Construction Head where he leads the firm’s National Construction Board. The New England team consists of 63 employees, and is ranked #15 on the Boston Business Journal Area’s Largest General Contractors list billing $108+ million in 2009.
High Profile: Is all your work with properties managed or brokered by Jones Lang LaSalle?
Mark David: No. Nearly 75% of our business is what we would call third party work, which is not related to any of the other services we offer here.
HP: What portion of work are interior office fit outs and what portion is high-tech or bio-tech labs?
MD: Our core business has always been and will continue to be, interior renovations. As the company has grown and the business has expanded, we’re now one of the larger ‘ground up’ contractors. On average, a third of our business, is ‘ground up’, on an annual basis, with a very strong life science practice, which equates to close to 25% of our business.
HP: Have you noticed a change, over the past couple of years, in the challenges and concerns presented to you by owners?
MD: Yes. Our investor clients have stabilized by virtue of fewer transactions. We know who the players are in the market. Most are challenged with increased vacancy and less dollars to put back into the buildings. They’re trying to get the most bang for their buck by way of attracting tenants to their building. We are challenged with trying to help them by putting budgets together that make sense for the asset long term without spending a significant amount of dollars. The last couple of years things have been tightening and all have been reduced to a more modest scale.
HP: How about in the area of ‘green’? Has there been more or has it been pretty steady the past 10 years?
MD: I think most owners are taking a responsible look at it. There certainly are ways that they can achieve what they are looking for. Investors who may own multiple office buildings all realize the importance from marketability stand point. They also understand the importance from an operational standpoint. Most owners are doing a thorough evaluation of trying to push their buildings toward a more sustainable design.
OMIT HP: To what extent do you call on outside subcontractors?
OMIT MD: We call on subcontractors regularly.
HP: You recently became the president elect at Massachusetts Building Congress. Why MBC?
MD: The MBC, for me, was a little bit of a different organization. It has a very strong history in offering very good, relevant programs. They made a strong networking aspect to that organization. The combination of those two filled a void for our organization. My involvement over the last few years has grown to get me to this ‘president elect’ position.
HP: What has evolved from the Spaulding and Slye days, since the merger?
MD: Having spent the first 12 years of my career with Spaulding and Slye, I watched the construction business become a major element of our company. We went through an acquisition phase with the merger with Jones Lang LaSalle and at that time there was a little skepticism among the construction professionals in that Jones Lang LaSalledid not offer construction as one of its core businesses on a global level, let alone on a national level. What we quickly realized is a thorough understanding of the business and the value proposition that it brings to our organization and the differentiator that it brings against some of our national competitors, particularly leasing and management. It’s been three and a half years since we became Jones Lang LaSalle and the company has pledged some significant support to help grow that business. Part of the Spaulding and Slye story was that we had a presence in Washington and Boston and two and a half years ago we started a construction operation in Chicago, where Jones Lang LaSalle was headquartered. As the company has grown it’s required a little bit of a national overlay. (Mike: I removed the last sentence from here.)
HP: What do you see for the future?
MD: We’re poised for growth in 2010 and looking to expand. The market is soft right now. It has not impeded our vision to grow the business on a national level. The timing is right and I think that the brand of the firm will certainly help us be well positioned as the market starts to turn in our favor.
HP: You’re looking for both new markets and geographic expansion?
MD: It will be geographic expansion based on current market locations where the firm already has a strong presence but where construction is not offered.
