JLL Wins Gargantuan Industrial Portfolio Management Assignment
- Mar 13, 2015
JLL just landed a big one. The commercial real estate services firm has been selected by IDI Gazeley Brookfield Logistics Properties to manage a 47 million-square-foot portfolio of industrial assets spanning nine states.
Big one, indeed; the IDI Gazeley contract marks JLL’s largest U.S. industrial property management assignment. It also serves as a sign of the times, as more and more companies look to third parties to manage their real estate assets.
“It says a lot for how clients value their own internal business and where they want to focus their attention for their investors/shareholders,” Brenda Crisp, senior vice president and national lead for industrial property management at JLL, told Commercial Property Executive. “Outsourcing provides the opportunity for scaling as portfolios expand and contract, which most corporations aren’t equipped to readily deal with from a personnel perspective. JLL’s business knowledge and high value talent makes our staffing population much more elastic to accommodate those business demands. Outsourcing with the right business partner lowers typical corporate overhead costs and allows for those dollars to be re-invested in their core business.”
JLL will have its hands full. The collection of IDI Gazeley assets encompasses 165 properties in major markets in California, Florida, Georgia, Illinois, New Jersey, Ohio, Pennsylvania, Tennessee and Texas. Tenants include leading names in the retail, manufacturing, e-commerce, third-party logistics and transportation sectors. It’s a portfolio that first began to take shape in 1989 under the ownership of distribution facilities company Industrial Developments International Inc., which was acquired by a consortium involving Brookfield Property Partners L.P. in 2013, and later merged with European logistics warehouses and distribution parks developer EZW Gazeley Ltd. In 2014, Brookfield brought the two companies together to create IDI Gazeley, its $3.5 billion global logistics property platform. JLL’s management responsibilities will only involve IDI Gazeley’s U.S. assets.
“This transaction positions IDI Gazeley for greater scalability and growth, while benefiting from the expertise and talent offered by JLL,” Jay Cornforth, Managing Partner, Global Head of Industrial at Brookfield Property Group and CEO of IDI Gazeley North America, noted in a press release. “In short, we have re-aligned our organization to better focus on our customer relationships and service by leveraging JLL’s class-leading property management platform.”