ATLANTA-CBRE has snapped up a leading Atlanta-based commercial real estate services. The acquisition immediately adds CBRE additional 13 million square feet of office and industrial space to its Southeast Region’s property-management portfolio. Financial terms of the deal were not disclosed.
The decision to buy out Resource Real Estate Partners LLC and TPA Realty Services LLC—known in the industry as “RREP/TPA”—gives CBRE’s a management portfolio that spans about 40 million square feet in Atlanta. That’s a huge spark CBRE’s efforts to expand its presence in the fast-growing northeast Atlanta market.
“This transaction nicely complements our capabilities in Atlanta and further strengthens our market-leading position in the region,” says John Ferguson, executive managing director of CBRE’s Southeast Region. “In particular, through this acquisition, we have significantly enhanced our service offerings in the northeast Atlanta submarket, where we see opportunities to drive even further growth.”
According to CBRE’s latest market report, Atlanta’s Northeast submarket is the city’s largest. Many would argue it’s also the strongest. Northeast Atlanta’s industrial vacancy rate in the third quarter was 12.2%. That’s more than two percentage points below the second-largest Airport/South Atlanta area.
At the same time, Atlanta’s in office market has been slower to recover thanks to a flood of newly developed towers. As of the end of the third quarter of 2012, Atlanta’s vacancy rate held steady at 28%. That compares to 22% for the broader Atlanta market.
But leasing activity in the area remains strong, Ferguson adds, and rents should rise and vacancies fall as both the local and national economy strengthens.
Noteworthy is the fact that CBRE’s purchase does not include RREP/TPA’s development operations. The company’s 70 brokers, property managers, building engineers and support staff will be integrated into CBRE’s local offices, Ferguson says.
Additional reporting by David W. Myers.