"Our initiative with SiteStuff , which we are undertaking alongwith our partners CB Richard Ellis and Trammell Crow, is a verticalinitiative, which means we will be using it to bring operating costsavings at Jones Lang LaSalle," says Mark Rose, chief innovationofficer at Jones Lang LaSalle. "At Constellation we are simplyinvestors. Constellation will be making a broad range ofinvestments related to real estate technology development."

While Rose sees no conflict for Jones Lang LaSalle,FacilityPro.com and Austin, TX-based SiteStuff.com are likely tobecome fierce competitors in the emerging market for electronicpurchasing of real estate goods and services, or e-procurement.Mark Rose's boss, Bill Sullivan, newly appointed e-business chiefat Jones Lang LaSalle, recently told Globest.com that he expectshis firm will save as much as 15% on annual procurement costs withthe SiteStuff initiative.

Constellation Real Technologies, whose leading members includeMidwest REIT behemoths Simon Properties and Equity Office andResidential REITS, is capitalized at $135 million. Morgan StanleyDean Witter, which is both an investor in and advisor toConstellation, is seeking out a management team for Constellation,which is expected to be based in San Francisco.