WASHINGTON, DC-Colliers International is launching a Government Services Practice Group, headed by former Grubb & Ellis brokers Kurt Stout, Charles Dilks and Keith Lavey. They trio has joined Colliers as executive vice presidents.
The group is launching at an inauspicious time, Stout acknowledges to GlobeSt.com, as leasing and other activity by the federal government is clearly in slowdown mode.
“That will last as long as the budget standoff does,” he predicts. However there is also a longer term trend at play, which will be part of the landscape for years--and that is the government’s move to scale back its real estate costs as much as possible. “We have seen a cutback in lease construction, or build-to-suit projects as a result,” Stout says. “There are also a lot of requirements being terminated and some expansions, even when they have been approved, put on hold.” All of this, he says, is good news for existing landlords as it means a much higher probability of renewal.
That is not enough to build a new practice and Stout, in fact, expects to hire three to six new people in short order. He has several targets in mind, starting with the disposition process the government is undergoing, both at the state and local level. “We believe there are a lot of opportunities to service the government now, from implementing energy efficient projects to modernization projects, asset management, improving the financial performance of a portfolio, and yes, dispositions,” he says.
According to Stout, Colliers intends to compete for the contracts associated with the 14,000-building sell-off the government is readying. It is also targeting local and state governments, which have been selling off buildings for much longer in order to balance their books. “In many respects the states are out in front of the federal government with their sale leaseback transactions and municipal bond offerings.”
The group will be based in Washington, DC and will provide a full menu of consulting and contracting services to government agencies on a national basis. It will also provide tenant representation services to government agencies, including leasing, consulting, contracting, project management, facilities management, lease administration and valuation.
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