LONDON-HSBC, based here, has issued letters of intent to appoint both CB Richard Ellis and Jones Lang LaSalle to handle work on 72 million square feet of office and retail space around the world. If the contracts go through, CBRE will act as global strategic property portfolio manager and will join Jones Lang LaSalle as regional property transaction manager.
In the split of work, CBRE will continue to handle all property in Europe, while JLL will handle all property in the Middle East and North Africa. The two will handle separate accounts in Asia and North America, except in Hong Kong, where EC Harris and Knight Frank will continue to provide management services. Due to HSBC’s extensive presence in Latin America, the financial firm has asked CBRE, JLL, Cushman & Wakefield and Colliers International to provide property services across the continent.
CBRE has the largest bulk of the work, advising HSBC on its global property portfolio of more than 7,500 properties across 87 countries. The contract is reportedly worth $10 million over five years.
Jones Lang LaSalle is renewing its five-year contract to handle transaction services for eight million square feet in the United States, and is adding two million square feet in Canada. The company’s work will include integrated facilities management, transaction management, lease accounting, strategic consulting, occupancy planning, predictive analysis and project and development services for its assigned properties.
Bryan Jacobs with JLL tells GlobeSt.com that the bidding process started last summer. “It’s been a significant amount of work for all sides,” he says. “We’re going to specifically evaluate HSBC’s portfolio to see how they can best serve their customers. We’ll also be looking at productivity, and how they can be more efficient with space.”
He says that providing corporate commercial real estate outsourcing services has been picking up considerably since the recent downturn. “When we went into the recession, a lot of people sat on the fence, concerned about long-term decisions. In the past year, companies have begun to think about what they’re going to be doing over the next five to 10 years, and there’s been significant requests for proposal work,” Jacobs says.
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