CBRE Acquires PKF Consulting
- Jul 21, 2014
CBRE Group Inc., the world’s largest commercial real estate services and investment firm in terms of 2013 revenue, has gotten even larger. CBRE just acquired PKF Consulting USA L.L.C., an international advisory, consulting and research firm providing services to the hospitality, real estate and tourism industries.
CBRE purchased PKF Consulting USA and its research affiliate, PKF Hospitality Research LLC., from real estate company FirstService Corp., parent company of leading commercial real estate services firm Colliers International.
“We have CBRE Hotels [headed by Kevin Mallory, senior managing director] as well as the hospitality professionals in our valuation and advisory services area. We have a strong practice and demand for services and for strategic insight has only been increasing so with PKF professionals and knowledge, we’re adding great players to what is a great team already,” a CBRE spokesperson told Commercial Property Executive.
Headquartered in San Francisco, PKF counts hotel owners and operators, financial institutions, real estate players, product and service providers and governmental agencies as its clients. The company offers a full roster of services, including include real estate appraisals, litigation support and expert testimony, market and financial feasibility studies, spa and wellness consulting, purchase price allocations, asset recovery services and impact studies.
And then there’s the research provided through PKF-HR. PKF-HR will enhance CBRE’s existing research platform, which covers the office and industrial markets.
“We, like others in the hotel and hospitality sector, have been well aware of PKF and their reputation and the work they do so it’s really exciting to have them come and join us,” the spokesperson added. “And we think with their knowledge in consulting and research expertise cross-mixed with our strong hotel platform in terms of valuation and appraisal and brokerage, it’s really going to be a great addition.”
Times are good in the hospitality sector. According to the June edition of PKF-HR’s Hotel Horizons forecast report, a favorable balance between supply and demand will yield an increase in the national hotel occupancy level to 63.6 percent, exceeding the pre-recession high of 63.1 percent.
“At this time in the cycle, our forecasts have proven to be most accurate, and all we see for the foreseeable future is a period of persistent, positive performance,” according to the PKF-HR report. “This consistent, predictable and profitable environment offers all industry participants ample opportunities to make money during the next few years.”
As for CBRE, it’s shaping up to be a busy summer for the company. Just last week, CBRE acquired commercial real estate services firm U.S. Equities Realty L.L.C., which leases and manages 17 million square feet of property in metropolitan Chicago, including the Willis Tower (formerly Sears Tower). And in June, CBRE secured an assignment to provide property management services for CommonWealth REIT’s 42.9 million-square-foot property portfolio.