Dive Brief:
- CBRE will provide property management services to Brookfield Properties’ U.S. office portfolio through its new Investor Portfolio Management service, according to a press release.
- The agreement, announced last Wednesday, will span more than 65 million square feet of office space and include property management services like building operations, property accounting and procurement services, CBRE said.
- The partnership aims to manage Brookfield’s portfolio more efficiently by leveraging the technological capabilities of CBRE and its key operating partners, the release said.
Dive Insight:
CBRE has been increasingly focused on bolstering its property and facilities management services as challenging commercial real estate market conditions drive a sustained lull in the firm’s property sales, debt financing deals and leasing activity, according to its 2023 Q3 earnings.
At the time, CBRE CEO Bob Sulentic noted that the firm’s strong momentum in project management, geared toward improving office space experiences, and its involvement in infrastructure and green energy initiatives, are expected to offset concerns about reduced capital spending.
As part of the agreement, CBRE will take charge of accounting, procurement and building technologies at approximately 85 buildings, with Brookfield retaining management of the cash flow and investment aspects of its portfolio, Commercial Observer reported, noting that an undisclosed number of Brookfield’s maintenance and operations staff will transition to CBRE as their employer when the partnership takes effect April 2.
Brookfield Properties will serve as the “cornerstone client” of its Investor Portfolio Management business, per the news release. CBRE said it will serve Brookfield Properties and its Investor Portfolio Management clients by harnessing the capabilities of key partners that include VTS, which integrates tenant experience data to drive building operations; Industrious, which specializes in flex space; and Deepki, an investor sustainability data intelligence platform
The partnership will enable both global real estate businesses to boost operational efficiency and sharpen their focus on “strategic activities that generate maximum value for our investors,” Greg Meyer, president of Brookfield Properties’ North American office business, said in the release.
The partnership will “set a new property management standard in the marketplace,” Emma Buckland, CBRE’s global president of property management, said in the release, noting that the firm is “well positioned” to enhance overall value creation for Brookfield’s office portfolio.
