Earlier this year, Microsoft Corp. eliminated Johnson Controls' Pacific Northwest maintenance contract, which totaled some 8 million sf, and went out to bid on a full-sevrice management contract that would include maintenance and cover all Microsoft facilities nationwide, which adds about 2 million sf to the Northwest total. Microsoft reportedly sought bids from several of the leading corporate management companies, including Johnson Controls and Grubb & Ellis.
According to the state Employment Security Department, Johnson Controls Inc. plans to lay off 151 workers in Redmond due to the loss of the contract. Grubb & Ellis, however, is considering hiring most of the staff and already has begun interviewing them. Maureen Ehrenberg of Grubb & Ellis tells GlobeSt.com her company is looking to execute a seamless transition and will soon make decisions about retention and recruitment based on the interviews.
Microsoft could not be reached for comment. Grubb & Ellis is currently bidding on 30-to-50 million sf of corporate management space owned or leased by Fortune 500 companies. Ehrenberg says the Microsoft contract is important because it speaks to Grubb & Ellis's ability to provide national corporate real estate management services, which has been an important strategy for the company for several years.
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