CHICAGO-CB Richard Ellis Group Inc., based in Los Angeles, hashired two local professionals to start a new auction service forthe company. Doug Johnson and Paul Galanis, who both previouslyworked for the auction firm Sheldon Good & Co., have joinedCBRE as managing directors.

The two will offer a full spectrum of auction services, rangingfrom the traditional “open-outcry” method, to sealed bids, toonline auctions, said CBRE officials. Auctions are an increasinglypopular means of disposing of commercial property, and even moreuseful in a soft market such as today, said Jeff Barrett, SVP inthe CBRE Recovery and Restructuring Service Group. Sources say morethan $236 billion in multifamily and commercial real estate assetsthroughout major metropolitan areas have fallen into distressduring the current cycle.

“With the amount of distressed real estate that’s out there,executing disposition strategy using auction techniques isappropriate,” Barrett tells GlobeSt.com. “Demand is probably higherfor this service than in years past. Also, this is a good servicewe can market to our corporate clients, those who may have gonethrough downsizing and who find themselves with extra space.”