CHICAGO-CB Richard Ellis Group Inc., based in Los Angeles, has hired two local professionals to start a new auction service for the company. Doug Johnson and Paul Galanis, who both previously worked for the auction firm Sheldon Good & Co., have joined CBRE as managing directors.
The two will offer a full spectrum of auction services, ranging from the traditional “open-outcry” method, to sealed bids, to online auctions, said CBRE officials. Auctions are an increasingly popular means of disposing of commercial property, and even more useful in a soft market such as today, said Jeff Barrett, SVP in the CBRE Recovery and Restructuring Service Group. Sources say more than $236 billion in multifamily and commercial real estate assets throughout major metropolitan areas have fallen into distress during the current cycle.
“With the amount of distressed real estate that’s out there, executing disposition strategy using auction techniques is appropriate,” Barrett tells GlobeSt.com. “Demand is probably higher for this service than in years past. Also, this is a good service we can market to our corporate clients, those who may have gone through downsizing and who find themselves with extra space.”
Johnson and Galanis will be based out of Chicago. Between the two of them, they have been involved with nearly $1 billion of commercial property sales via auction.
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