BOSTON-CresaPartners and Jorgensen Facilities are partnering up to help supplement each other's services packages. CresaPartners does not have a facilities management company and Jorgensen does not have a transaction management division and a limited project management division. "Both firms have been receiving Requests for Proposals calling for the delivery of all major service lines," notes CresaPartners' CEO Bill Goade, in statement.
"CresaPartners does everything for corporate real estate except facilities management," explains Cresa's VP of corporate services, Jim Ricker. "It doesn't make sense to start your own facilities management business. The margins are lower than the other service lines, so there aren't a lot of incentives to get into it at this stage. But there are some fine firms out there that are already doing it."
The Boston-based firm had been searching for a facilities manager to join them exclusively in their endeavors and landed on Irvine, CA-based Jorgensen through a shared business model. "Jorgensen is about the same size as us, it's an employee-owned company like we are, and they have a very similar philosophy of how to conduct business, so it seemed like a pretty good fit," Ricker tells GlobeSt.com.
Ricker notes that the partnership is already showing some dividends, as they are working on a number of projects together, most notably evaluating the potential of non-hospital real estate for a local medical center and facilities management for a regionally headquartered company with numerous locations abroad, as well. Also, the partnership is "doing a facility condition assessment on a prospective site to make sure it will work for the client, with proper infrastructure, adequate power and air conditioning," he explains.
And as employment continues to be low, the tenants hold an upper hand in negotiations. Ricker explains that there is a lot of consulting need, since companies are figuring how to reuse much of their existing space. Regarding shadow space, it remains the great unknown in the leasing sector. "It's hard to know exactly what the size of it is, but there's quite a bit of it," Ricker tells GlobeSt.com. "Some of the larger companies are holding onto surplus space because they don't want to take the write-offs, for financial reasons, but it's not getting used and it's not on the market yet."
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