Avison Young to Pick Up Business Lines From Madison Marquette

Avison Young and Madison Marquette signed an agreement where the former is going to acquire a number of service lines from the latter. The lines include Madison Marquette’s office and industrial property management, agency leasing and project management service lines.

The business lines will take on the Avison Young brand and the deal is expected to close in September.

“The acquisition includes more than 20 million square feet, and 235 team members including, property managers, agency leasing professionals, project managers, building engineers and accountants that will integrate with the firm’s markets primarily in Texas and California, the East Coast Region and, adding a new market for the firm in Hawaii,” the release stated. “The combined operations will elevate both the client experience and Avison Young’s competitive advantage in the real estate industry, amplifying the firm’s presence in 11 states.”

Avison Young has been on an acquisitions tear over the last year. One of its strategic musts is to “support occupiers, owners and investors as they navigate through accelerating marketplace needs.” In addition to the gains in Hawaii, “the firm’s expansion of property management, agency leasing and project management services lines in its robust Texas and California operations, significantly bolsters Avison Young’s presence in those geographically important markets.” According to the companies, the gain in Texas alone is 68 property management assets of a total 12.2 million square feet; 54 of the properties are in greater Houston.

Some of Madison Marquette’s major assets and clients included in the deal are CenterPoint Energy, Starwood Property Trust, and Principal Global Investors. In addition, the expanded presence in markets and new customers open the potential for cross sales of Avison Young’s data analytics and technology offerings.

“Growing our real estate management platform across the U.S. is a strategic priority for Avison Young,” the release quoted Randel Waites, principal and managing director of Avison Young’s  U.S. real estate management services group as saying. “This transaction underscores our commitment to delivering new, improved and expanded services in all markets, especially those that are critical to all of our growing clients’ needs. Madison Marquette’s solutions-oriented approach to real estate management services complements our entrepreneurial and client-centric solutions, delivering long-term sustainable improvement in CRE services across the industries and critical operating environments of Avison Young’s clients.”

Madison Marquette picks up capital from the sale and will focus on investment management and advisory services, including retail and mixed-use property management and development. Which is a reminder that, as welcome as cash might be, typically a company is looking for other strategic benefits as well.