Nov. 5 (Bloomberg) -- Jones Lang LaSalle Inc., the commercial property broker that has lost more than half its market value this year, is reorganizing to help banks, insurers and local governments contend with the global credit crisis as the company's profit plunges.

The firm plans to reassign 30 senior managers and hundreds of staff to help clients consolidate office space, renegotiate or sell loans, sell distressed properties and value illiquid real estate-related securities, Kenneth Rudy, Jones Lang's chief operating officer for capital markets, said in an interview.

Turmoil in the financial markets is taking a toll on commercial brokers. Revenue from arranging property sales and financing in the Americas dropped 42 percent in the first nine months of this year at Jones Lang, the No. 2 broker by market value. The bankruptcy of Lehman Brothers Holdings Inc., the takeover of Merrill Lynch & Co. and mortgage-related writedowns and losses of at least $680 billion at financial institutions are roiling lending and sidelining buyers.

``We said, `You know what? This isn't going away anytime soon,'' said Rudy, who heads a group that oversees property sales and arranges financing. ``This is a major shift.''

The company will focus on banks and insurance companies, offering what it calls ``value recovery services.'' Both industries ``are dealing with a massive amount of reorganization of their businesses,'' Rudy said.

Jones Lang said it wants to advise clients who may face a second wave of financial stress as commercial real estate debt comes due. Another goal is to help cash-strapped municipalities and non-profit groups dispose of property.

Stressed Borrowers

``There could be some stress for these borrowers if the capital markets haven't re-established themselves and more liquidity hasn't come back in the system,'' Rudy said. ``All of these are clearly strategies to maintain revenue in a difficult time.''

U.S. sales of commercial buildings fell by 66 percent in the first half of 2008, research firm Reis Inc. said in an Oct. 3 report. The vacancy rate for office buildings nationwide rose to 13.6 percent in the third quarter, from 13.1 percent the quarter before.

Jones Lang fell $2.29, or 7.2 percent, to $29.64 at 4:25 p.m. in New York Stock Exchange composite trading. The shares are down 58 percent this year. Larger competitor CB Richard Ellis Group Inc. of Los Angeles has dropped 71 percent.

Profit Declines

Profit at Jones Lang has fallen for three straight quarters and is forecast to drop in the fourth quarter. The company's net income is forecast to decline 53 percent this year from 2007, according to Bloomberg data.

The broker cut its dividend in half to 25 cents a share to shore up its balance sheet, a decision Chief Executive Officer Colin Dyer said in an interview at the time was designed to be ``cautious'' at an ``unprecedented time.''

The company earned about 22 percent of its $2.7 billion in revenue last year from property sales and arranging financing for transactions, according to an August investor presentation. Another 22 percent came from leasing services and property management.

Jones Lang gets 34 percent of its revenue from the Americas, 40 percent from Europe and 26 percent from the Asia- Pacific region.

The company plans to institute the reorganization globally, spokeswoman Paige Steers said.

``It is a fundamental retooling,'' Rudy said. ``You don't even have to be a real estate practitioner to see that there is an evolution going on right now.''

To contact the reporter on this story: Sharon L. Lynch in New York at sllynch@bloomberg.net

Last Updated: November 5, 2008 16:31 EST