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Setting the benchmark

Jones Lang LaSalle strives to be at the top of Czech real estate market

By Curtis M. Wong
Staff Writer, The Prague Post
August 20th, 2008 issue

JAN PŘEROVSKÝ/THE PRAGUE POST
Tewfik Sabongui, the managing director of Jones Lang LaSalle's Prague offices, sees his company as a real estate market leader.
Jones Lang LaSalle


Myslbek Building
Ovocný trh 8
Prague 1
Tel.: 224 234 809
Web: www.cz. joneslanglasalle.com

Photo courtesy of JONES LANG LASALLE
The Fabrika Business Park in Plzeň is just one project in Jones Lang LaSalle's portfolio.
It’s safe to say that you’re within a short distance of a Jones Lang LaSalle office no matter where you are in the world. The financial and professional real estate firm, which recently celebrated 16 years in the Czech Republic, has more than 170 offices worldwide, operating in more than 700 cities in 60 countries.
At the helm of the company’s Prague office is Managing Director Tewfik Sabongui, an industry professional whose background fits in perfectly with the international structure and character of Jones Lang LaSalle. A native of Cairo, Sabongui studied at a German secondary school and then attended an American university in Egypt, though he spent much of his leisure time in the Czech Republic while in school as well. After several years in real estate, he joined the company’s team in February 2001 as head of the office agency department and in June 2005 added the title of managing director, a role he’s occupied every since, to his expanding resume. In the past six years, he’s focused on office leasing and client advisory, often working closely on projects alongside local developers and clients such as Skanska, Orco and Raiffeisen Property Invest.
With that type of professional history, it may come as a surprise that Sabongui didn’t set his sights on conquering the real estate world. That’s just one of the many revelations that came about during Sabongui’s recent chat with The Prague Post, during which he also described what it takes to be a market leader and why a little “industry optimism” goes a long way.
The Prague Post: Had you always been interested in working in the real estate industry?
Tewfik Sabongui: To be honest, it was totally unplanned, because I was involved in other types of more industrial-related businesses. The only reason that I ended up in real estate was a mere chance coincidence. I was looking for a job and meeting with some companies. I met with one developer, and they asked me how much I knew about real estate. I said nothing, but I don’t think it’s that complicated when you understand the basis, and you’re able to organize business negotiations.
TPP: What do you enjoy most about the real estate industry?
TS: I think it’s the diversity of things. You get to meet many different people, work with different companies and experience different cultures. You work on different projects, communicate with people, advise them and negotiate with them. It’s a people’s business, and that’s what I like about it.
TPP: On the other hand, what’s the most challenging part of working in this industry?
TS: I think the most challenging thing — and it’s not only in this industry — is being able to find the right balance between knowing what you need to do in [a] limited market with ongoing competition … trying to retain people, trying to manage to have the right balance between your professional and private life. So I think it’s a combination of various things together, and of course, you do experience the ups and downs of the market and the industry as a whole. You need to adjust at any given time to make sure things are moving forward in a positive sense. So you need to be highly flexible and make sure that you try to see the bigger picture.
TPP: What would you say it is about yourself that makes you well-suited for this type of industry?
TS: I’m not used to talking so much about myself in this respect. I think it could be a combination of different things. One thing could be my exposure to different cultures and also being able to communicate in different languages. It’s always easier and more comfortable when you’re able to communicate with people in their native language. I am a person who enjoys meeting and talking to people and, as I said, it is about people. Plus, I enjoy the work that I do, and that’s the most important thing. You need to enjoy what you’re doing; if you don’t, you will not be motivated to be good at it. You lose the drive and the interest.
TPP: It seems that Jones Lang LaSalle has quite an impressive range of professional services for its clients. What would you say it is about the company’s services that establishes the firm from your competitors?
TS: First of all, I’m glad we have competition. It’s because of this competition that we’re able to show the difference in certain aspects. Last year, we celebrated our 15th anniversary in the Czech Republic, and we’ve been a market leader for many years. We have good experienced people, and we manage to retain and motivate them. We have the market knowledge, thanks to the fact that our people are with us for a very long time. Over many years, we’ve been able to establish a solid working relationship with our core clients, and we’ve been able to retain those relationships. We also try to be one step ahead of our clients, so that when a trend is moving in one direction, we make sure we’re ready and able to absorb whatever will be required as a result of that trend. For example, we were the first to offer separate departments for office leasing and tenant representation in 1998. … We’re also very strong in the capital markets business. It’s the devotion to the clients and high-quality services, and being able to understand a client’s needs.
TPP: You mention a lot about trends. Looking back to the start of your time here in the Czech Republic until now, how would you say the demands of your local clients have shifted during that time?
TS: Overall, the economy has been growing, and so have our businesses and development activities. Office schemes have been catching up with the standards of Western Europe. We’ve seen projects going from being individual office buildings to multiphase business and office parks. The regional cities of the Czech Republic have started to become active, so it’s not only about Prague as the capital city. These regional cities such as Brno and Plzeň are coming more into the picture and partly competing with Prague. Prague is getting more and more limited so we want to be part of the regional developments and activities as well.
TPP: How do you think your local customers’ demands will continue to change in the next five years?
TS: If we look historically at the supply figures in Prague, we see there’s a constantly increasing supply. If you look at the total existing stock in Prague and compare it with other cities in Western Europe, it’s still below where many other major European cities are. There’s still high potential to continue building. We registered the lowest vacancy rate ever this year, which is a very healthy signal. So we do have a huge potential for further growth. And the economy has shifted from being a purely industrial economy to one that is service-oriented, which means there will be more demand for office space. We envision some activities shifting from Western Europe, so we’ll see this trend continuing in most lines of businesses. We’re still in a very competitive environment, and strategically being in the heart of Central Europe, it makes a lot of commercial sense to be here. So we are optimistic, and we’ll see what will happen.
TPP: Does Jones Lang LaSalle have a specific motto that everyone adheres to?
TS: Well, definitely. As with every company, we have our goals and targets. Each department is very clear about this. … One of our strengths is that we have a very good team structure. People do communicate well and, as you know, information is at the core of the success of any business.
TPP: On your Web site, the company prides itself in having “an independent tenant representation department.” What does this mean for your clients?
TS: The department handles requirements of our tenants. Many companies might not have the capacities or market capabilities. This department tries to fully understand the exact needs of the client. It makes a market search and analysis that explores all of the clients’ options and starts negotiating the commercial terms. This process starts with the search and continues until the completion and signing of the contract. To be neutral and focus purely on the tenant [is very important].
TPP: How would you like to see your company grow or expand?
TS: I think everyone is ambitious, and ambition is not only a personal level. When this office started 16 years ago, we started with four people. A year and half ago, we were 24 … Today we’re 36. So there’s been an organic growth that is a reflection of the business development of our clients. It’s my goal to expand that business further. One thing is clear — as long as the market, economy and our clients will allow us to grow and expand our business with theirs, we will definitely do it.
TPP: Finally, how would you describe your personal and professional goals in your role as managing director?
TS: Well, to make sure that the business will continue to grow. Most importantly, it’s to make sure that we have a stable business and that we have people who are motivated and enthusiastic. I very much believe in people and that people are the reason businesses are successful. In every business, people come and people go, but this shouldn’t harm the business. In the past few years, we’ve lost very few people. Life is change and change is life. It’s important that we remain the No. 1 agency in our market, and that we will set a benchmark.

Curtis M. Wong can be reached at cwong@praguepost.com


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