by Mike Sharkey
Staff Writer
The world’s biggest commercial real estate management company just got a lot lot bigger.
Jan. 2 marked the official first day of the merger between CB Richard Ellis and Trammell Crow Company.
“The merger has been ratified by the (Trammell Crow) stockholders,” said Jim Citrano, managing director for CB Richard Ellis locally. “They are the ones that had to vote on it because CB made the offer. There has been an overwhelmingly positive response. They are calling it the perfect fit.”
In acquiring Trammell Crow for $2.2 billion, CB Richard Ellis didn’t just solidify its position as the world’s largest commercial real estate management company. The Los Angeles-based company with 250 offices worldwide also added to its portfolio of services. Citrano said the one element of commercial real estate — the development facet — is something Trammell Crow specializes in and in adding the Texas-based company, CB Richard Ellis is now full-service.
“Obviously that’s a good thing,” he said. “They are one of the most respected names in the business.”
Trammell Crow has offices all over the United States and in Canada and India. Locally, Citrano said four of the five brokers previously with Trammell Crow have committed to joining CB Richard Ellis while the other is “weighing their options.”
In merging with Trammell Crow, CB Richard Ellis has acquired a company that was established in 1948 and has evolved into a firm that offers many services in several areas including office, industrial, multi-family residential, healthcare, shopping center, student housing and airport distribution centers. Bard Chrishillis is the principal and director of the Jacksonville Trammell Crow office. He said the merger is indicative of the current nature of the commercial real estate industry.
“I think it’s certainly a sign of a trend in corporate real estate,” said Chrishillis. “Two of the biggest companies in the world have merged to create a larger, more dominant Fortune 500 company. We have filled in areas where CB Richard Ellis was weaker and Trammell Crow was strong.”
Chrishillis said he isn’t exactly sure of the role he will play with CB Richard Ellis, but did say he will continue to focus on office brokerage services.
According to Chrishillis, one of the main benefits of the merger for CB Richard Ellis is the acquisition of Trammell Crow’s proven track record with companies like Bank of America. In the past, Trammell Crow didn’t just manage Bank of America properties, it developed them and managed every aspect.
“Bank of America literally turned its entire real estate over to Trammell Crow,” said Chrishillis. “We managed every piece of property from the light bulbs to the building itself to the lease. Trammell Crow employees did everything. The new entity just allows us to provide a further scope of services.”
Citrano said the company will continue to occupy space in both Riverplace Tower and Enterprise Center.
“We will not move everyone any time soon,” said Citrano. “We will get all the sales people under one roof and the balance will stay at Riverplace Tower for the foreseeable future. Trammell Crow has a lease with Riverplace ad we don’t break leases. I also want to see exactly how much space we need. Ultimately, as the leases wind down, the situation will get a little clearer, we’ll see what space is available and where. My goal is to get everyone under one roof. What I really want to see is what makes sense for everybody.”