CBRE says that Panattoni chose the L.A.-based firm for the assignment after reevaluating its asset strategy and determining that by operating its own national property management operation in-house, Panattoni was taking company resources away from its core business of development and repositioning of assets. John Thomas, chief operating officer for PDC, says that as Panattoni expanded outside of California, it found that it "did not have the concentration to support the property management business."
Thomas says that outsourcing the business to CBRE is designed to elevate the performance of Panattoni's properties, "improve tenant satisfaction, boost employee morale and streamline efficiencies to increase NOI." His words echo the remarks of many in the commercial real estate industry today who say that outsourcing is on the rise as property owners--especially owners of large portfolios--look to improve efficiencies.
During CBRE's most recent earnings conference call, for example, CEO Brett White commented that large corporations and institutional owners, when looking to become more efficient, outsource noncore activities to third-party providers. CBRE's most recent annual report listed outsourcing as one of the current key drivers of revenue growth for the largest commercial real estate services companies.
CBRE's Strategic Accounts Group provides professionals who serve the company's elite investor clients as single points of contact to involve the overall CBRE organization, notes Steve Bassett, senior managing director for the Strategic Accounts Group. CBRE professionals who will manage the Panattoni properties will include Cindy Burger, managing director of asset services for Orange County, who is overseeing the Orange County and Inland Empire portions of the portfolio; Iris Andre, managing director of asset services for Sacramento, who is overseeing Sacramento assets; and Elizabeth Teske, director of asset serves in the Reno office, who is overseeing the Reno portion of the portfolio.
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