Michael Lafitte, president of the Dallas-based institutional andcorporate services for Los Angeles-headquartered CBRE, has provideddetails for the quartet of deals, adding the recent signingsboosted year-to-date tallies to 14 renewals and expansions and 24new corporate accounts. The latest round has bed down a renewalfrom San Francisco-based McKesson Corp., expansion fromCincinnati-based Fifth Third Bank and new pacts from London-basedDiageo and Chrysler Realty Co. LLC of Detroit.

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"We have had constant activity on the renewal front andexpansion front," Lafitte says. "The merger of Trammell Crow Co.was largely about this outsourcing space."

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Lafitte tells GlobeSt.com that McKesson, a Fortune 20company, courted its contract to the market before re-upping foranother five years for transaction management, portfolioadministration and program and project management for 17.5 millionsf at 270 locations. The package covers the headquarters, sales andmarketing offices, call centers and distribution centers. CBRE alsohas the facilities management contract for 51 locations, totaling4.5 million sf, and select facility services for another 2.5million sf.

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The first McKesson contract produced 250 transactions and 120projects, including nine major build-to-suits. Lafitte heads up theaccount, with his team consisting of Lynn Kious, area executiveaccount leader; Tim Schroeder, alliance director; and 90 other CBREprofessionals in the US and Canada.

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Fifth Third Bank had CBRE doing transaction management and leaseadministration for 11.5 million sf, but not facilities and projectmanagement. "The combined organization has a much deeper platformand we were able to convince Fifth Third Bank to let us dofacilities and project management," Lafitte confides.

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Presently ranked as the 12th largest bank in the US, Fifth Thirdplans to add 400 locations in three years in the US. The account isheaded up by CBRE senior vice president Edward Schreyer, seniordirector Dawn Spillane and Ken Loeber and Bret Nave in thebrokerage house's project management group.

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Diageo, a holding company for some of the biggest names in thebeer and liquor industry, has put CBRE in charge of 20 sites with500,000 sf of office and warehouse buildings in the US and Canada.Previously, Diageo had several providers standing watch over thefacilities. The new pact spans facility, transaction and projectmanagement functions as well as portfolio administration. The CBREteam will be led by Benjamin Chirgwin, managing director andalliance director of a 17-member team for the account.

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Chrysler has signed a three-year lease for transactionmanagement, lease administration and valuation services for itsdealership portfolio. Its team will be led by Jeff DeSano asalliance director with assistance from James Angelotti, GreggShutan, Andrew Hallissey, Alex Darragh, Fran Saele and MichaelGerard. Kent Alexander, executive account leader for CBRE's globalcorporate services business in the Midwest, says he's "confident"that the team's approach "will generate significant value forChrysler."

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The global corporate services group represents 9,000 of the24,000 professionals in the combined CBRE-TCC hierarchy. In lastweek's earnings call, CBRE leaders reported global corporateservices accounted for 23% of the $1.5 billion of third-quarterrevenue. Pre-merger, CBRE's outsourcing was 14% of its Q3 2006revenue.

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The global outsourcing group is responsible for 300 accounts,with more on the way. "It's a good pipeline. We feel very goodabout the prospects of this business," Lafitte says.

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With today's escalating costs, more companies are poring overareas to save on the bottom line. In doing so, Lafitte says thereis a trend for companies to consolidate outsourcing contracts whiletrying to expand their bases. "Corporate portfolios have beenpretty stable, but there could be some pause with what's going onin the market," he explains. "But, they're definitely consolidatingthe number of providers that they're using."

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