Commonwealth REIT Retains CBRE for 43 MSF Property Management Portfolio
- Jun 25, 2014
CBRE Group Inc.’s property management responsibilities have mushroomed overnight. The commercial real estate services firm was just tapped by CommonWealth REIT to provide property management services for the company’s 42.9 million-square-foot portfolio.
The portfolio consists of 156 assets–excluding properties classified as discontinued operations–spanning 31 markets. Per its business plan, CommonWealth REIT has been disposing of certain properties in an effort to reposition its portfolio, retreating from suburban office and industrial assets to amass a collection of high-quality office buildings in central business districts.
“CBRE’s technical expertise and on-the-ground resources combined with our team’s real estate management expertise will enhance service delivery for tenants at our properties and maximize building operating performance across our portfolio,” David Weinberg, CommonWealth COO, said in a prepared statement.
CBRE certainly has the chops for the job. The International Association of Outsourcing Professionals ranks the firm among the top three outsourcing services providers in the world on its 2014 Global Outsourcing 100 list.
“Corporations, healthcare providers, government entities and other institutions are increasingly turning to CBRE for truly integrated real estate solutions,” Jim Groch, CFO of CBRE, said during the firm’s first quarter earnings call in April. “As a result, we are gaining new clients and expanding relationships at an impressive clip. In Q1 2014, we signed outsourcing contracts with 25 new clients and expanded our service offering with 24 existing customers.”
Come Oct. 1, or thereabouts, CBRE will take on its new role with CommonWealth. The firm is no stranger to servicing gargantuan portfolios. Within the last few years, the United States Postal Service selected CBRE to provide corporate real estate solutions for its 300 million-square-foot group of 35,000 facilities, and London-based investment management firm PRUPIM, now M&G Real Estate, chose the firm to deliver property management and accounting services for its 45 million-square-foot U.K. portfolio.