Save the date: RealShare L.A.comes to the Hyatt Regency Century Plaza in Los Angeles, CA on March 27, 2013
LOS ANGELES-CBRE Group Inc. has paid an undisclosed sum for a leading commercial real estate services firm based in Atlanta, adding more than 13 million square feet of office and industrial space to its Southeast Region’s property-management portfolio.
The deal to acquire Resource Real Estate Partners LLC and TPA Realty Services LLC—commonly referred to as “RREP/TPA”—pushes its management portfolio in Georgia’s largest city to about 40 million square feet and is a huge boost to CBRE’s efforts to expand its management portfolio 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,” John Ferguson, executive managing director of CBRE’s Southeast Region, says in a prepared statement.
“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.”
The Northeast submarket is Atlanta’s largest, CBRE’s latest market-report says, and arguably its strongest. Its industrial vacancy rate in the third quarter was 12.2%, more than two percentage points below the second-largest Airport/South Atlanta area.
Its office-market has been struggling a bit, largely due to a rash of new development. Its vacancy factor at the end of the third quarter stood at 28%, compared to 22% for the overall 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.
The 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.