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Consolidation Major Trend, Says CRESA Partners

MINNEAPOLIS - Mergers, internal growth, enhancing

By Jim McCartney | Updated on December 04, 2000

MINNEAPOLIS-The desire to consolidate space has become a majortrend among companies, according to a new publicationreleased by CRESA Partners.The Minneapolis-based commercial real estate firm,which has done consolidation for such firms as ADCTelecommunications and Nationwide Insurance, says thetrend is driven by mergers, internal growth, creatingoperational synergies, upgrading the corporate image,downsizing, a slowing economy and pressure to increaseproductivity.

“Cutting expenses is a leading concern of 31%of chief financial officers polled recently by aconsulting firm,” says Bill Tobin, president of CRESAPartners.”Their concern is likely to result in many moreconsolidations.” Tobin cautions that consolidation involves much morethan adding or subtracting square footage. After all,consolidations mean major changes for employees as faras their workspace, colleagues and commuting isconcerned.

CRESA Partners helped manage a recent consolidationfor ADC Telecommunications, based in Minnetonka, MN. ADC had threeseparate facilities and several sales people workingout of their homes in the Chicago area, and wanted tocut the costs of multiple offices, manage growth andenhance its presence in the Chicago market. One groupneeded office space near existing warehouse space androom for significant growth; another needed class Aoffice space; and the third needed basic office spacefor new employees.

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