CBRE Inks Innovative 'Co-Management' Agreement

LAS VEGAS-Secured California Investments and CB Richard Ellis have created a new type of property management agreement that CBRE will apparently try to reproduce in other markets.

The so-called co-management agreement has Secured California Investments’ Las Vegas property management team setting up shop in the Vegas offices of CBRE. In exchange for its space, oversight and resources, CBRE gets 25% of SCI’s management fee. Technically, SCI’s management team will be CBRE employees, but SCI will be reimbursing their salary.

“We created a way that as an owner we could retain management of our portfolio, which our investors want, while at the same time benefit from the oversight and support of a national provider,” SCI General Manager Mark Wittcoff tells GlobeSt.com. “CBRE now plans to go into other markets and offer this relationship as a new prototype for owners.”