Last month CB Richard Ellis finally acquired Trammell Crow after more than a year of pursuit, inking a $2.2 billion deal that’s expected to close early next year.
The biggest commercial merger of 2006 mixes CBRE’s large, brokerage-centered firm with Trammell Crow’s service-focused firm. Trammell Crow has an extensive services platform that includes project management, engineering, facilities management, investment sales, leasing and landlord representation. Dirk Hrobsky, senior vice president of Trammell Crow in New York City, said the company was weak in its brokerage practice, and the two firms have complementary strength. Trammell Crow will keep its name and function as a subsidiary investment development group within CBRE.
The acquirer’s brokerage unit has more brokers than any other firm in New York City. CBRE recently became the first commercial real estate brokerage to break into the Fortune 500 list of the nation’s largest corporations. The merger creates a company of more than 21,000 employees; approximately 7,000 employees are coming from Trammell Crow. CBRE has 221 brokers working in New York City and Trammell Crow has 24. “CBRE’s goal is to be the first firm to deliver fully integrated services to its clients,” said Mitch Rudin, president of CBRE’s tri-state operations. “Trammell Crow rounds out our service offerings and brings much greater services across the spectrum.”